Budgeting: Part 2
Reexamining your financial conscience
Okay, so you’ve made your college budget. And now, one month later, it’s time to check in on your progress and reexamine your financial conscience. It’s really not as cutthroat as it sounds. Let’s just take a look at your spending habits.
But before we get to that, we should do some updating of your budget. So, did any income sources change in the last month? Maybe you got a raise at work? Or possibly your Great Aunt Mildred sent you a large sum of cash for your birthday? Any money you may have added in the last month must be factored into your income.
Now the fun part: it’s time to review your spending. Have you stuck to the budget? Have you?
Are there areas where you didn’t need all of the money that you allocated? Maybe you spent less on groceries than you anticipated? Or possibly you spent less on entertainment (let’s be real, your Friday nights are comprised of binge-watching Supernatural anyway)?
After updating your budget to reflect your current income and expenses, subtract expenses from income to figure out if you are spending more than you have. Is this number positive? You have money to spare! Maybe add it to your savings or emergency fund for a rainy day. Or, is this number negative? This young child is judging you…and it looks like it’s time to revisit your expenses and cut back on some unnecessary items.
Now you have the knowledge you need to be a budget wizard! Go out into the world and use this knowledge! Just remember, if you can update and reexamine your budget every month or so, you can maintain healthy spending habits!
Finance Wizard, out.