It is very important that you learn how to manage your money when you graduate. If you plan carefully, you can set aside money that you can use for emergencies and/or investments. If you aren’t careful, you could wind up in debt that can take years to get out from under.
The template has been provided to help you through the budgeting process.
Please print a copy of the template instructons prior to downloading the spreadsheet template.
Do not enter data in the light green cells. These cells are there to do your calculations for you.
Enter dollar amounts in the yellow boxes. Enter an amount for every line even if it is only zero.
In the grey "Notes" cell enter a short explanation of why you entered the amount you did.
Examples:
If you put only $200.00 down for rent, you would put "Living with four roommates" in the notes cell.
If you are going to live at home and not pay any rent, then put "0" in the yellow box and "Living at Home" in the notes cell.
Explanation of the Spreadsheet Rows
Row 4, Income:- This cell automatically adds up all of the income sources you enter in lines 10-12.
- This cell adds up all of the expenses you list below.
- This should be a positive number. If it is negative, you are spending more than you are making.
- If you plan to have a job, figure out how many hours you plan to work in a month and multiply it by the wage you expect to make. Enter where you plan to work and the wage you expect to make in the Note Cell.
- If you plan to have a second job, enter that information here.
- If you have other forms of income (Allowance, Trust Fund, etc.), enter the monthly amount here. Be sure to list what type of income it is in the notes field. Only put non-taxable income in this field.
- If you are making monthly payments on a credit card, put the total here.
- If you are making a car payment, put the monthly total here.
- If you are making payments on a personal loan (for instance to your parents), enter the total here.
Fixed Expenses
Row 34, Rent:- Figure out how much you will need to pay for rent each month. Questions to ask yourself: “Am I going to live in a dorm?”, “Am I going to have roommates?” If you don’t need to pay rent, enter “0” and put an explanation in the notes cell.
- If you are going to drive a car, you need to have Auto Insurance. You might pay on a quarterly or monthly basis. If this is the case, you still need to budget for it. For example: If you pay $600 for insurance every six months, you need to divide that total by six to figure out how much money you need to set aside to pay your insurance bill. In this case it would be $100.00.
- You may not need Medical Insurance if you are covered on your parent’s policy. However, if you aren’t covered, you may want to look into getting coverage.
- Are you going to have cable? If so, are you going to get digital cable? Premium channels or just basic cable? How much can you afford?
- How much does basic service cost? Do you make a lot of long distance calls? If so, then you need to budget more. Do you have a cell phone? How much does your plan cost?
- Are you going to have the Internet at home? How much is that going to cost? Can you afford a cable modem?
- Are you going to set aside money for investments or savings? It is a good idea if you can afford it.
- How much does water, power, and gas cost? Can you share these expenses with roommates?
Variable Expenses
Row 46, Household:- How much money are you going to need for miscellaneous household costs? This could be anything from one-time house repairs to weekly laundry expenses.
- How much money are you going to need for food each month?
- How much do you spend in gas in a month? You should plan on increase gas costs. Does your car need a lot of maintenance?
- If you aren’t going to have a car, are you going to take the bus? A cab? The trolley? Are you going to be flying home? Do you need to pay for parking?
- How much money do you plan to spend on clothes each month?
Row 51 School Tuition:
- How much will your classes cost? Do you have a scholarship? If so, make sure you mention it in the notes cell.
- This you will have to make your best guess on. Figure out how many classes you are going to take. You can usually count on about one to two books per class and each book can cost anywhere from $25- $90 per book.
- Are you going to need to park on campus? How much is a parking permit?
- Is there any medication that you need to purchase?
- Do you plan to go to the movies? Do you want to buy any DVDs or CDs? Do you plan to go to any concerts?
- How much do you spend in restaurants each month? Think about it. It adds up fast.
- Do you like to give things to friends and family? How much can you afford to spend on gifts?
- Do you plan to go on any trips? How much does a trip cost?
- Do you have a pet? How much does it cost to feed it? How much does kitty litter cost? Does your pet need medical care?
- What are some other expenses you may have?
Once you've entered all of your totals, go back and check line 7 Income Less Expenses. Have you spent too much money? If not, good job!!! If so, you may need to ask yourself the following questions:
- Do I need to work more hours?
- Do I need to get a roommate?
- Can I afford Digital Cable? Can I get by with just basic cable?
- Can I find a better cell phone plan?
- Am I spending too much on fast food?
Once you've looked at your expenses, start adjusting the amounts. Watch what happens to line 6 as you change your data.
Remember, you want your expenses to be less than your income. At the same time, you want your totals to be realistic.