Track your spending
In personal finance, it isn't how much money you have that's most important, but how you manage what you've got. A detailed spending plan can help you succeed at just about any point in your financial development.
A word-to-the-wise before you get started with your very own plan: Creating one is the easy part; making it work is the real challenge. Here are a few secrets to following a budget, according to About.com:
- Keep a positive attitude and look at what you gain from organizing your finances;
- Customize the categories to your personal spending; and,
- Plan for a little flexibility, since you will have to go back and update as needed.
- Keep track of expenses for at least two weeks; a month is better and over a few months even more accurate. Use this handy worksheet, Tracking my spending, to help get you started.
- Track everything! Especially impulse purchases and ATM withdrawals—the little stuff really adds up over time. Also remember the infrequent expenditures like vehicle tabs, laundry and haircuts.
- After you are done tracking, it is now time to create your semester spending plan by entering your findings in this sample worksheet.
- Review your spending monthly. Don't be discouraged if the first version doesn't work. Go back often and adjust as necessary—a spending plan won't do you much good unless it's realistic for your lifestyle. Update your spending plan to reflect changes such as a growing family, moving to a new apartment, or achieving that hard earned raise.
- Keep at it until you find a workable spending plan.
- CNN Money 101: Making a budget
- Find the top ten things to know about budgets, the dubious joy of budgeting, and how to list and prioritize your expenses.
- What makes a good budget
- Schedule a financial counseling session through Boynton Health Service.
- The first session is free for all University of Minnesota students. Additional financial counseling visits are just $25.