BUDGETING

The best budget tip-don't try to cut out all spending at one time. Start with a few expenses and be sure to make your budget flexible. You'll need a focal point to really plan your budget.

Step 1: Determine your monthly income.
Before you can reach your budgeting goal, you need to know where you stand today. Examine your current sources of income such as a monthly allowance from your parents, part-time job, or savings account.

Step 2: Assess your spending.
Write down your monthly expenses-be sure to include the cost of books, vending machine snacks, entertainment, and even change for parking meters.
Calculator: How much am I spending?

Step 3: Identify areas of saving.
Now that you know how much you're spending, identify expenses you can trim. Target those daily expenses like food and small purchases that really add up.

• Food Tips
  Try cutting back on dining out or grabbing coffee with your friends-you could end up saving an additional $20 to $40 a week. Investigate on-campus meal plans that your school offers as a cost effective alternative.
  Calculator: What's it worth to reduce my spending?

• Credit Tips
  If it's too easy to reach for your card when you're out-start leaving your card at home. If you like the convenience of carrying a credit card, then a check card is a great solution.
  Managing Debt and Credit

• On-Campus Housing
  Consider on-campus housing versus renting an apartment or house while in school. It is more cost effective and will be part of your overall college tuition. It's also a great way to meet other students and get involved in campus activities.

 Step 4: Set careful goals.

Be realistic. If you're working part-time it is not likely that you'll to be able to afford a new car every couple of years.

State the specifics.  "I plan/want to save $300 a month for entertainment costs."

Have a time frame in mind. "I plan/want to pay off my credit card within the next 18 months."

State the action to be taken. "I want to cut back on convenience spending and clothing purchases every month to help meet my goal."

Step 5: Build your budget.
Once you've completed your budget preparation, it's time to actually build your budget. Your method could be as basic as a paper spreadsheet or as detailed as a software package.
Budget Calculator from Wachovia 
Budget Spreadsheet from Practical Money Skills for Life^TM 

Step 6: Manage your budget.
Find a system that allows you to track and plan your finances. With Wachovia's Online Banking you can view your account anytime you want.

Step 7: Update your budget.
At the end of the first month on your budget, review your budgeted expenses against your monthly income. Reassess to determine if your plan is working.

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