Money Talks with Karzell is the latest column in the newspaper. As a professional accounting major, I believe it’s important for students to start their journey to financial freedom early. Stay tuned for tips, advice or information related to money backed by expert opinions and recommendations; I would love to hear questions from you!
As a college student, it can be hard to balance school, work and a personal life, and it is even more difficult to create a budget that promotes healthy spending and saving habits. Today, that can change with these tips:
- First, create a spreadsheet or use a budgeting app that allows you to keep track of your expenses. USA.gov recommends understanding your income and expenses for each month.
- Next, many experts recommend the 50/30/20 rule. This rule is explained as using 50% of your income for essential expenses, 30% for things you want and 20% for savings (or debt, if you have any). To understand this method more, NerdWallet provides extra details as well as a calculator to split your finances accordingly.
- Next, when dealing with credit cards you should only spend what you can pay monthly, as suggested by The Federal Student Aid website. Paying your credit card off in full at the end of the month also gives your credit a boost!
- Finally, understanding your spending habits per month could save you some dollars in the long run. According to the Federal Student Aid website, you should overestimate your expenses and underestimate your income. This is to ensure you don’t fall short of your budget goals and are always prepared for expenses.
Hopefully, these tips have increased your understanding of your finances to create an effective budget plan. Stay tuned for more!