Reasons to Budget

Student with calculator

  • You are in control of your money
  • Understand where your money is going
  • Improves your ability to pay all of your bills
  • Pay down debt
  • Save for things you really want
  • Reduces stress
  • Helps you prepare for emergencies
  • Can make it easier to save for retirement

Steps to Building a Budget

Monthly Tracking

Take stock of your daily expenses, including recurring bills and subscriptions. Assess your grocery shopping frequency and takeout orders each month. Consider the cost and frequency of filling up your gas tank, or if you don't own a vehicle, evaluate your transportation expenses. For independent students, factor in the costs associated with dependents you may be caring for. Additionally, track any miscellaneous living expenses such as household items like hand soap and trash bags. This comprehensive assessment will provide insight into your spending habits and help identify areas where adjustments can be made to improve financial management.