Budgeting Tips

When you say the word budget, most people cringe. They picture eating macaroni & cheese or rice for weeks on end. They picture having to sit at home on the couch doing nothing. But the truth of the matter is that a well thought out budget can set you free. By planning where and when you spend your money, you never need to worry about running out, or having to eat macaroni & cheese for weeks on end.

How To Plan a Budget

1. Examine your expenses.
    - Write down all the things you spend money in a month. These may include your cell phone, food, rent, utilities, vehicle insurance, gas, going to the movies, etc.

2. Examine your resources.
    - Where is your money coming from? Savings in the bank? A part-time job? RESPs? Student Loans?
    - Once you know where it’s coming from, know when. If you get your student loan money twice over the academic year to cover tuition and living expenses, then make sure that once your tuition and fees are deducted that you spread out your remaining money to cover the next four months.

3. Break down your budget into months.
    - Figure out how much money you’ll have coming in for each month, as well as where you’ll need to spend it.
    - Make sure you know of any one-time expenses that will come up over the year, such as vehicle registration renewal. Make sure you budget them into your expenses for the correct month.

4. Write it down!
    - Track your expenses for a month to see where you do most of your spending, and to make sure that the numbers you budgeted for a month are realistic.
    - Then, keep track of your budget to make sure you’re actually following it. Do this in an excel spreadsheet or in a notebook, it doesn’t matter. Just keep tabs on it over the month to make sure you’re not overspending.

Your budget may look something like this:

Resources (per year)
Student Loans	$  9,900
Savings	$  4,000
Part-time job	$  1,800
Scholarships/Bursaries	$  1,500
Total:	$17,200
Academic Costs (based on the 2010-11 Academic Year)
Tuition	$  8,773
Fees	$     455
Textbooks	$  1,000
Residence	$  2,840
Food Plan	$  2,550
Total Academic:	$15,618
Personal Costs
Transit Pass	$     600
Entertainment	$     300
Clothing/Misc	$     400
Total Personal	$  1,300
Total Costs	$16,918

Things to Remember

-    Tuition and fees are due at Confirmation and Registration, and you’ll need to buy textbooks as well. Make sure to have the monies to cover these expenses in September and January.
-    While a car may make transportation easier, it is not a necessity, and opting for a bus pass can significantly reduce your expenses.
-    Entertainment doesn’t have to be expensive to be fun. Check out Affordable Fun Around Edmonton.