Budgeting


Hi, everyone! Today's topic is budgeting. Some of you may stop reading now, but I hope you'll stay! I promise it's not as scary as it sounds!
Although I started budgeting this summer, I am not new to the subject at all. My parents used to attend one of Dave Ramsey's finance classes and my sister and I used to accompany them. Budgeting has always been in my subconscious, but I've never acted on it. However, over the summer, with my Freshman year of college behind me, I decided I needed to start giving this whole budgeting thing a chance.
I realized during my Freshman year of college that I was spending my money twice as much as I was saving. I didn't care that I was constantly spending which I really regret now. It dawned on me that if I wanted to get a jumpstart on future purchases such as an apartment when I graduate, I needed to work harder. First of all, I want to tell you all that this is what works best for me. It doesn't mean it will work for you, but I do encourage you to start thinking about budgeting especially if you are a college student.
So, this is what I came up with.

The Budget: 
10% for tithe
20% for spending (recreational and groceries)
30% for gas
40% for savings

Categories:
1. Tithe: Growing up, my parents always stressed tithe. I would give every once in a while, but now I see the importance of giving to my church. Because I am getting paid on a regular basis, this ensures that I will always have some amount for tithing.
2. Spending: This category is for groceries and recreational spending such as going out to eat, concert tickets, makeup, and so on. When I go home, my parents usually send me back to school with a few groceries. However, sometimes I don't go home for a month and I have a meal plan, so I usually weigh the options week by week and decide what I'll be spending on.
3. Gas: Because I work and live on campus, I don't drive that much. This category adds up over time, so when I do need to buy gas I'll have enough to pay for a full tank.
4. Savings: Plain and simple. This money goes directly into my savings account.

How to: 
Let's say my paycheck is for $109.84
10% = $10.98
20% = $21.97
30% = $32.95
40% = $43.94

I round the first three numbers:
$11
$22
$32
Add them up and subtract them from $109.84, which is $44.84. This amount is what I will put in savings because having all the cents just makes everything way too messy.

So, when I go to the bank, I will get the tithe amount, spending amount, and gas amount in cash (sometimes I will opt for getting gas put in my checking account because it saves more time at the pump) and then put my savings amount into my savings account.
Once I get back home with my cash, I put the correct amounts of cash into their envelopes. I use envelopes to guarantee that I won't spend any more than what is in the envelope. Once that money is gone, it's gone until I get paid again. If I don't use all the money in my gas envelope, I cannot put it in my spending. It must stay in its designated envelope. Using envelopes really helps me to think before I buy (no impulse buying here!) and helps me be wiser about what I spend my money on.

If you have read all of this, thank you so much! I hope that I have helped you in some way, or have given you an idea! If you have questions/comments please feel free to email me :)

-Carrie

0 comments:

Post a Comment

 

Pages

Follow by Email