It is important to review your spending plan monthly to make sure you are staying on track. Ask yourself, how long will it take? How much money will I need? How much time do I have? Do I have any money saved? What resources or information will I need? Once you have answered these questions, begin creating a spending plan that will propel you toward these goals!Īt its most basic, a spending plan has two major parts: When creating a spending plan be sure that it supports your short-term, mid-term, and perhaps even your long-term goals. Now that you know where your money goes, you will be able to set up a spending plan based on the information you have been tracking. Wants are the extra things you spend your money on such as dining out and entertainment. Check with your bank on the availability of these online resources.Īs you start to track your expenses, it is helpful to break your spending into different categories. There are two main categories of expenses: needs and wants. Needs are expenses that are required for living such as rent, food, utilities, and transportation costs. In addition, many banks now offer free expense tracking and budgeting tools that make this process much easier. Print this budget to help you track your spending. To do this, you will need to track all of your expenses by writing down every dollar you spend for at least a month. The first step to creating a spending plan is to determine how much money you spend. With a spending plan, you will take control of your money by choosing how you want to spend and save your money each month. If so, make your “budget” a spending plan. Maybe the word “budget” sounds too restrictive, like a diet. Everyone has a budget sometimes you just don’t know it! Do you pay bills? Purchase groceries or food? Buy an occasional cup of coffee? If you ever do any of these things, you are working with a budget. Maybe you feel like you don’t have a budget because as soon as your money comes in, it feels like it’s already spent. Now that you have identified your goals, you’re going to need to evaluate your budget. I will keep practicing to be frugal and know where my money is going.” Erinn Russell, CG114 student “Since taking Financial Survival and tracking what I spend every month, I’ve seen little amounts of money add up to a large lump sum that I could have used on a bill, or saved. PCC / Panther Tracks: Guides to Student Success / Student’s Guide to Money / How to make a budget Budget = a spending plan
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