Why should I create a budget plan?
A budget is, simply put, a plan for your money. By tracking income and expenses, you can create a plan for your spending and saving. If you have ever found yourself looking at your bank account and wondering where your money went, a budget can help. The most common cause of financial problems is spending more than you are earning. With a flexible, sensible budget, you can control of your money and avoid financial stress. It can help you limit spending and ensure there is enough money to do the things that you want.
How do I get started?
- Build a starting budget with your best guess of what you spend in a month (on average), separated into categories like books, personal expenses, rent, phone, and entertainment.
- Track your expenses for a few months. Then, compare these figures with your previous projections. You may be surprised to see where your guesses were higher or lower.
- Once you have tracked your expenses, compare these to your income. If you are spending more than you are earning, you need to make changes.
- Be honest about “needs” vs. “wants”. Enjoying a store-bought coffee every single day is nice, but you could save up to $80/month by reducing this purchase from daily to weekly.
- Review your monthly budget for any necessary changes. Remember: a budget is fluid, meaning that it will (and should) adjust as your income and goals adjust.
Use our budget planning calculator below and/or get help from UW-Stevens Point’s very own School of Business and Economics financial coaching program – by students, for students. Learn how to better manage your finances with their help. For more information, click here.
Also, UWSP offers GradReady, a free, interactive, online tool that offers video lessons, tools and tips to help you succeed financially, academically, and personally. Paying for College is one of the paths available in GradReady which includes information on budgeting!