It seems like the hardest times to budget and manage our money is when we need it the most. For me, during college was when it was the most important for me to budget, but also the most difficult due to a busy schedule and other obligations. Remember that budgeting is going to look different depending on your current circumstances but can almost always help you improve your financial situation. This is by no means a detailed tutorial on how to budget, although there are many good resources on the internet to help with that. Instead, these are a few tips that helped me make budgeting easier during the busiest times in my life.
Disclaimer: I am not a financial advisor or a professional for this topic. These are just some things I’ve found helpful when budgeting in my personal life.
Find a consistent time to budget
Time management is hard when you are juggling many things, but this doesn’t have to take long. I generally budget for the coming month sometime on the last Sunday of the previous month. Having a set time helps it get done without it hanging over your head and causing more stress. And the more practice you have, the less time it will take.
Decide if you prefer to budget on paper or on a computer
I’d recommend trying both out a bit before picking one. On paper you can use a simple notebook and keep one column for income and one for expenses for the month then calculate the totals using a calculator. Some people prefer this method because of the simplistic and tangible feeling to it. And it can also be a great addition to bullet journals if that is something you enjoy. Personally I use a computer and a program like Google Sheets. There are pre-made templates available but honestly if you just put one column for income labels, one for income amounts, one for expenses labels, and one for expenses amounts you can have the program automatically calculate the totals for you. And then you can see the difference between the two and adapt your budget as needed, with it updating real time.
Keep a separate list of non-monthly income and expenses
This one is so incredibly important for college students. It’s where tuition, scholarships, grants, and student loans are recorded. As well as some car insurance and other bills for both those in and out of school. Also include amounts for non-monthly expenses for things that aren’t bills, like money for new tires. Calculate how much you need to set aside to pay for irregular expenses after irregular income has been deducted from them and include these amounts in your monthly budget. Also if you are a student and don’t already file your FAFSA, I am begging you to start, it can be a complete game changer for making school affordable.
Be prepared for emergencies
Try and set aside some money every month in a separate emergency fund for unexpected emergency expenses. Maybe your car breaks down or you need new tires, or you have a hospital bill. Bad stuff happens, it’s easier to bounce back from it if you have a little cushion in an emergency fund. Ideally this would be 3-6 months worth of expenses but a good place to start working toward would be $500-$1000.
Include some fun money but make sure to prioritize necessities
Decide on an amount to give yourself to pay for fun things for the month, like outings with friends or dates with your spouse. If you don’t plan on this beforehand, you will likely spend it anyways and may spend much more that intended. Ultimately make sure this amount isn’t going to interfere with you making your rent / mortgage payment or being able to buy food. Sometimes you won’t have much extra, if any, after expenses but try to make the most of what you do have.
Check out my other post about my favorite ways to save money and stay tuned for another on cheap date ideas to help maximize your budget.
Check out the other posts in the Home Management for Busy People Series:
Remember to give yourself grace when you aren’t perfect at budgeting. Like everything else, it just takes practice and will get easier with time.
