Budgeting

What is budgeting?

To budget is to plan how you will spend your income.

Decide on a timeframe
This may depend on your sources of income and anticipated expenses. For example, if you receive your income and pay your expenses at the beginning of each semester, you'll want to prepare a semester-long budget. However, if your income and expenses occur weekly, bi-weekly, or monthly, consider preparing a budget for each month.
Determine your income
Get an accurate picture of funds that you'll incur throughout the year. These may include loans, work-study, scholarships, or grants.
Determine your anticipated expense
Figure out where your money will be spent and how much you'll be spending. Will you pay for rent? Gas? Groceries? Electric?
Evaluate your budget
Subtract your expenses from your income. If you don't have enough income to cover your expenses, you'll want to reduce your spending or search for additional sources of income, such as employment opportunities or loans.
Record spending
Record your expenses and income to make sure your spending is aligned with your budget.
Reduce your spending
You'll have fixed and flexible expenses. Fixed expenses, such as housing costs or tuition, generally won't change. Flexible expenses, such as food or transportation costs, can often be reduced. Search for more affordable substitutes if necessary.