You have a written plan holding you accountable. It also makes you use that money more smartly. No guessing at whether you’ve spent too much at any given point. You can set fixed amounts, percentages, or ranges for the amount you spend, then simply follow that plan. Writing down your financials in a budget makes money management faster and easier. Savings/Investment: Your financial goals, retirement accounts, and other savings or investment accounts. Income: This is the money you receive from any sources, such as a paycheck, student loans, scholarships, or a birthday gift.Įxpenses: These are all the things you spend money on. Personal budgets are broken down into three broad categories: What is a personal budget?Ī personal budget is a plan detailing the money you bring in and how you’re going to spend that money. Otherwise, you risk making money decisions based on incomplete information… which can lead to overspending and financial stress.īelow, we’ll explain why you should make a budget in college and dive into some of the most vital categories to include in yours.
Everything needs to be accounted for so you can decide where to cut or rearrange your spending. However, you may quickly get overwhelmed with the first step-noting all of your expenses and breaking them down into categories that make sense within your budget. Are you thinking about making a budget? Congratulations! You’re ahead of many of your peers.
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