A financial diet for students - prepare your budget
Date: Wed, 09/21/2005 - 16:20
Budgeting is nothing but a promise to yourself that you will not cross the lines that you define in your budget sheet. You can prepare your own budget. Though you can think out your own method, let me pen down what I have felt about budgeting.
Step1: Calculate total income per month considering all possible sources. Don't forget your family contribution. If you receive a lump sum aid, allot it to all the months of the academic year.
Step2: Calculate your monthly expenses. Here you should be selective. Divide all your expenses broadly under two categories – Fixed and Floating. Put all those expenses under ‘Fixed' category that should be paid on monthly basis and you know the amount already.
If you are not sure about a particular expenditure, like examination fees, social funds, keep them under ‘Floating' category. This category may include the seasonal costs.
Step3: Add your floating expenses and divide yearly expenses by 12, half yearly expenses by 6 and so on to calculate the monthly share of floating expenses. It is very important, to protect your pocket from a sudden thrust.
Then add total monthly share of floating expenses with total fixed expenses. This is the figure you should keep in mind.
Step4: If your total monthly income is greater than your working figure, you are lucky enough. Whenever you receive your monthly payments, allot it according to your budget sheet. Don't forget to keep the monthly share of floating expenses aside.
But if you are not a lucky person, try to cut your expenses, reduce the cost of entertainment, make a list of priority based expenditure and try to manage some part-time job.
Stick to your budget, it will not only lead you to a stronger financial life, it will teach you discipline also. So try the budgeting process and let me know how it works. You can also post your own methods of preparing budget here.
Step1: Calculate total income per month considering all possible sources. Don't forget your family contribution. If you receive a lump sum aid, allot it to all the months of the academic year.
Step2: Calculate your monthly expenses. Here you should be selective. Divide all your expenses broadly under two categories – Fixed and Floating. Put all those expenses under ‘Fixed' category that should be paid on monthly basis and you know the amount already.
If you are not sure about a particular expenditure, like examination fees, social funds, keep them under ‘Floating' category. This category may include the seasonal costs.
Step3: Add your floating expenses and divide yearly expenses by 12, half yearly expenses by 6 and so on to calculate the monthly share of floating expenses. It is very important, to protect your pocket from a sudden thrust.
Then add total monthly share of floating expenses with total fixed expenses. This is the figure you should keep in mind.
Step4: If your total monthly income is greater than your working figure, you are lucky enough. Whenever you receive your monthly payments, allot it according to your budget sheet. Don't forget to keep the monthly share of floating expenses aside.
But if you are not a lucky person, try to cut your expenses, reduce the cost of entertainment, make a list of priority based expenditure and try to manage some part-time job.
Stick to your budget, it will not only lead you to a stronger financial life, it will teach you discipline also. So try the budgeting process and let me know how it works. You can also post your own methods of preparing budget here.
that's great bryan! most surprising fact is that what you mentio
that's great bryan! most surprising fact is that what you mentioned are very common facts, but i am sure very few think about it. thanks a lot to make us think about the usefuness of a budget. thanks again...
