College Life

Moving Up: Officially Broke 


Moving Up: Your Go-To Guide to Moving off Campus!

POV: Young, Dumb, and Broke just became your new favorite song. Or not, it is a bit overplayed. But regardless, you are young, and after moving into your new apartment, you might feel that you are broke. Bills are a real and stressful thing that one day appears in your life, whether you are ready or not. But don’t worry, luckily for you, Moving Up is here to ensure that you won’t be dumb. There is one secret that every college student must know that can save you a few grey hairs and wrinkled lines in the future: A budget! I know it’s not a fun idea, but unless you want your next move to be into a cardboard box, I suggest you strongly consider this option. Now I know what you are thinking. Where to start? How can I manage everything? What if I really really REALLY need retail therapy? All your worries will be answered, and much more! So, grab a pencil and paper and get ready to take some notes! Or I should say an electronic device, pencil, and paper is so old school. Nevertheless, let’s get started! 

To start, what is a budget? A budget is defined as, “an estimate of income and expenditure for a set period of time.” In a sense, it determines how much money you will make and how much you will spend money in each amount of time. There are a lot of benefits that come with creating a budget for yourself. Such as, your financial plan can be customized to fit your specific needs or goals at the time. Then, as time passes on, you have the freedom to reevaluate your plan for your new situation. Although it’s not always fun, some benefits include: 

  • Visualize the flow of your finances and improve spending habits 
  • Reduce financial stress 
  • Achieve financial goals, increase savings, and improve financial security 
  • Prepared for emergencies  
  • Reduce debt  

Most of the time, we are unaware of how much money we are actually spending, until we write it out. From the late-night target trips, to going to dinner with friends, getting the most needed sweet treat every night, or simply a holiday shopping spree, the spending adds up quickly. Creating a budget will allow you to visually see where your money is disappearing to, which will allow you to relieve some financial stress as well as benefit you in the future. Will Kabbes, a financial advisor, said “I know it was my major, but taking my spending seriously in college was one of the best decisions I have ever made. It wasn’t easy, but it taught me responsibility and the value of money. Instead of going to buy a blizzard from Dairy Queen, you could be saving that money for a future car, phone, laptop, groceries, a present, etc. Now this doesn’t mean do not ever spend unnecessary money, but instead of getting a sweet treat every night, cut back to once a week. Just a slight change can make a significant difference over time.  

Budgeting for groceries!

Ok ok we get it, a budget is a good thing, but how do actually create one? Great question! I am so glad you asked!

  1. Calculate your net income 
  1. Track your spending 
  1. Set realistic goals 
  1. Make a budget plan 
  1. Pick a budgeting method 
  1. Adjust your spending to stay on budget 
  1. Review your budget regularly 

Having a budget doesn’t have to be miserable. You can add in fun spending without breaking the bank. If you want to be successful, the plan needs to be realistic. To start, you need to figure out what your net income is. If you are like me, you may not know what that term means before starting this process. A net income is the amount of money you bring home after taxes and other deductions are taken out of your paycheck. In other words, It’s the money left over after making your fixed expenses. This is important so you know how much money you are bringing in, how much money you have spent, and how much money is left over.  

Next, take the time to look at youth spendings over the past month. This part might be hard to look at and see how much money was wasted on random things, but it is important. This step will not only give you. a clear view of what you are spending your money on, but also help you evaluate how much money is needed to budget for spending every month.  

After evaluating, you need to create a list of goals you want to accomplish when it comes to your budget. This can be seen as short tern or long term such as,  

Short term: 

  • Saving for a vacation/ new car 
  • Paying off credit card bill 
  • Creating an emergency fund  

Long term:  

  • Retirment  
  • Paying off debt  

My advice would be to make a list of both short term and long-term goals that you want to accomplish over the course of your life. Then create a REALISTIC plan of how you are going to accomplish those goals. This seems scary at first, but to start, simply create a monthly budget plan that will help you move in the direction of those goals over time. It would be unrealistic to say that you will have enough saved for your retirement by next year but putting $50 a month into an investment fund over the course of your life will make an impact.  

Now after you have created a plan, choose a budgeting method that works for you. Either you can make an excel worksheet that plans everything out and tells you the exact numbers you are allowed to spend and save, or you could do something as simple as every paycheck move a certain amount of money to your savings account. Then do not touch your savings, unless necessary. There are more options out there, and it is important to find the method that works best for you. Money is personal, so your budget should be the same. Having a plan that is realistic for you is the only way that you will be successful in your goals. 

Next, it’s time to act. This is where it gets serious. You can be all talk, but this is where your words must come into action. Sadly, you must now implement the plan into your daily life. With anything, this will take practice to get used to. I will not lie to you; some days will be easier than others, but the result is worth it. Conlan Walsh, a college student, said “In the beginning actually sticking to my budget was difficult, but now I am used to making smart spending decisions. Of course, there are times I want to buy a coffee when I could make one at home, but having a balance is also key.” This is the time in our lives where it’s necessary to live a little cheaply to live like bosses in the future. All good things come to those who wait!  

WAIT we are not finished yet! If you want to truly know the secret to being successful in budgeting, it’s this key part right here. You must reevaluate your plan every few months. Even if you don’t make any changes, it is extremely valuable to go over the budget and adjust aspects that may not be working. Life is constantly changing, so we need to change with it. For more information on budgeting, click here!

That is, it! That is everything you need to know about how to create the perfect budget for yourself! The cost of living is not cheap, but it doesn’t have to be unbearable. In college you aren’t supposed to have everything you could ever want. Having control of your spending habits is an important skill to learn and the earlier you learn, the better off you will be! It takes time to get used to having to save for rent and that truly if you don’t pay, you will be kicked out. Scary, but it’s true. However, you were lucky to find Moving Up to help along this journey! 

Wanting to know more? Check back to Moving Up for more need-to-know content about life off campus and to learn about the next step and follow us on Instagram at movingup_mu !! 

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