Monday, 10 January 2022 15:43

How to make a budget for your education?

Written by Evelyn Alas

A budget will help you answer these questions and is absolutely essential for managing your personal finances. Do you need a budget? Yes! Does everyone need a budget? Yes!

Develop your budget

Do this by writing down your expenses so you know where your money is going. Analyze your past spending as a pre-existing guide to your spending habits (financial self-awareness).

Then make an estimate of how much your new bills will be. Be sure to include expenses for entertainment, clothing and other major spending categories. Include some money for your savings. It may take several months to fine-tune your budget, but it's worth it.

Now, prepare an estimate of your monthly income. Do not include potential income, only the income you will actually receive.

Check your expenses and your income. Is more going out than coming in? If so, you need to cut expenses. Entertainment bills are easy to reduce; fixed costs such as utilities and housing are more difficult. Keep cutting back until you have enough to cover your expenses.

Be persistent and you will know the importance of organizing your finances through the tool that is a budget.