HOW DO I MAKE A BUDGET - STUDENT
How to budget in three steps:
Step One: Figure out your income
Income comes from many sources - your monthly or weekly paycheque when you work at a job. The amount you get from parents, allowance, birthday monetary gifts, interest from savings account, if you can add up all these sources on a monthly basis that will be your total income.
Step Two: Figure out your expenses
Expenses are the opposite of income. An expense is anything you spend your money on. For ex: Bus Tickets, Your cell phone bill, meals, groceries, rent for an apartment are all examples of expenses.
As in Step one, you can figure out your expenses by adding up these sources. Save your receipts, use bank or credit card statements and look at bills and other documents to find the sum of what you spend monthly or yearly.
Step Three: Evaluate your budget
Simple Math can help you find your total income. Subtract your expenses from your total income to see what money you have left.
If your expenses exceed income you will get a negative number which means you are in trouble. Reduce your spending in some areas to keep your bank in positive.
If you have money left over end of the month or year GOOD JOB! Now, you can put this money in a savings account to get 1% interest each month or INVEST and get a return of upto 5-10%. (ASK US HOW)
By following these three steps you can save up to meet your goals, like attending college or university, buying a new video game console or that purse you've had your eye on for way too long. Keep your budget up to date as your income and goals change.
But trust me this simple MATH WORKS!
Author - Atul Prakash
Please, check our blogs about different elements in Personal Finance - such as Insurance, Critical Illness, RRSP, RESPs etc.