Mike Rutschky
Published: January 25, 2006
For many students, saving money and budgeting might seem easy at first, but can quickly become a very difficult thing to maintain.ÿ For money to accumulate, it takes a lot of discipline, and unfortunately, a lot of sacrifice.ÿ
“I try to keep [my spending] to a set limit, but sometimes things pop up, like car payments,” Josh Duff, a graphic design major, said. “I’m comfortable with [my savings]. I’d like to have more.”
As time goes on it becomes harder to consider one’s long term goals when wanting to enjoy what is being offered to them in the present.ÿ Without the implementation of an effective budgeting system students might easily become discouraged.ÿ
The first thing to do to create an effective budgeting system is to keep track of every cent you spend- every cent.ÿ This can be done quite easily by saving receipts, or utilizing the register in your checkbook.ÿ Some banks even offer to do it for you using an online register.ÿ However that really can only help if all ofÿthe money you’re spending is coming from your checking account.ÿ It also might be best to pay for everything with a check card, this way you don’t have to withdraw $20 bills and risk spending the extra change in your pocket.ÿ
After about three months of keeping track of everything you’ve spent, you can start to calculate what percentage of your money is going where.ÿ At this point you would take into consideration the things that you must spend on and the things that you can live without.ÿ Certain things are fixed expenses and can’t be avoided (rent, tuition, gas) and some things can be cut out altogether (cigarettes, booze, girls).ÿ Divide your earnings into three categories: fixed expenses, savings, and a small amount set aside forÿdaily money.ÿ
It is important to discipline yourself with your spending money.ÿ You should never borrow from your other expenses to add to your petty cash.ÿ If you are tempted to splurge on something, it pays (not literally) to remind yourself of how hard you worked for the money that you are about to spend.ÿ
For instance, if you were going to buy a Big Mac value meal which costs (hypothetically) $5, and you make $6.50 an hour, you’re spending about an hour’s worth of your day on a burger and fries.ÿ Did you really work that hour so that you can buy this junk food?
Budgeting is not always easy, but it is necessary.ÿ The small things that you learn to sacrifice now add up and ultimately ensure an easier life for you in the future.