Time to Build your Budget

Time to Build your Budget

Five whole weeks until the class of 2016 is set free into the world. No more parents to help guide through troubles, no more extra twenty bucks borrowed from your mom, for those planning to move out at least. Money is one thing all seniors are going to be forced to get a grasp on. Might as well get a head start.

For those not going into accounting, creating a budget is something you’re not going to want to do. Creating your own budget is definitely one of the most important things you need to do before moving out. Without a budget, there is no order with your money, and you’re likely to end up broke and wondering why.

First and foremost, determine your monthly net income. If you plan on living by yourself or perhaps with a roommate, find out how much money you or both of you will be working with. After that, grab the phone out of your pocket and add up your monthly expenses like car payments, car insurance, phone bills, or any other bills your parents are going to make you start paying on your own. Next thing to do is to find out how much money you have left after all of those bills have been paid. With the money you have left, establish a rent budget that you will be able to pay each month. After all payments have been accounted for, the dollar amount left over is your leisure money. It’s a good idea to put an amount of your choosing into savings in case of emergencies such as fixing your car, fixing your phone, bailing your little brother out of jail, things of that sort.

Now that you have the steps to create a successful budget, put on your big boy pants and get to calculating.