Manage Your Money Effectively

Budgeting is a personal matter, and you should find the system that works best for you. You may like a detailed budget plan, or you may manage better using a few simple techniques. The following suggestions can be a part of your own money management.
The basic steps to budgeting are the same, no matter what system is used:

Estimate your income for the budget period. Include your savings, financial aid and school-year earnings, and any contributions from your family.

Estimate expenses. Fixed expenses such as tuition and fees should not vary within the academic year. Other costs, such as room and board, transportation, and personal expenses may vary, but are within your control. Anticipate special expenses such as security deposits, telephone installation fees, and gifts, and include these in your planning. You should know which expenses, such as tuition and fees, must be paid in full and which expenses can be paid weekly or monthly. Plan ahead and set aside the money in advance for these expenses.

Keep a record of actual expenses. You should keep a budget notebook and write down what you spend. Listing expenses by categories gives you an accurate picture of how you spend your money. For example, you might separate direct and indirect education expenses. Indirect expenses include transportation, room and board, medical, and personal expenses, while direct expenses are tuition, fees, books, and supplies. In a broad category such as personal expenses, it is easy to lose track of exact expenditures, so break down this category further into clothing, recreation, personal items, and household expenses.