How to understand my flow of money?
Seeing as though this may be your first year of post secondary education, you may or may not already have a financial plan. Being totally stressed out about finances is a reality that almost every students must deal with on a daily basis. Being able to predict and take charge of your finances can really help you relieve yourself of this stress so that you can concentrate on what really matters, your studies.
In order to understand how your bank account, you must take the time to plan your finances. The first step in doing so is to take a few minutes to jot down all of your expenses as well as all of your income. If you're not sure where to start, you may want to refer to your last month's debit card transaction history or your latest credit card statement.
Here is a sample list of expenses and income that you can use as a basis to create your own customized list. Some expenses could include housing, food, utilities, travel, insurance, personal expenses, entertainment. Some sources of income could include summer savings, part-time job, parent's contribution, government income, spouse's contribution.
Your guide to creating a budget
The very best way to begin creating a budget is by looking at the dollars that you actually spend, as well as your actual income. Feel free to use any budget template, however, you may also click on the link below to use the template that we have provided.
Once you have filled out your budget using your actual dollars earned and dollars spent, it is always a good idea to scan your budget to look for categories in which you may over spend on a monthly basis, or any opportunities to reduce some of your expenses. You may want to look to see if you could reduce your cellular phone bill, or your utilities. You may also want to try to save on Hydro by doing your laundry as well as running your dishwasher after 7pm and on weekends. Once you have done so, add your budgeted amounts to the 3rd column to see whether or not your goals are attainable. By taking this extra step, you will have a visual picture of where you should reduce your spending.
Analyse your expenses
Now that your budget is on paper, you are now able to see the true picture of your financial world. It is now a good time to have a look at the items on your expense list to see if any of them jump out at you. If you feel as though an expense such your cellular telephone bill, or your monthly cost for cable and/or internet is too high to fit into your budget, you may want to look at other options to reduce these costs to make the most of the income that you earn.
It is also important to remember that your electricity bill could be reduced by doing your laundry as well as running you dishwasher at night or on weekends.
Remember, a small saving goes a long way!