Budgeting Basics

Budgeting is important for every income level. You can use budgets to project your short-term and long-term goals. The process of budgeting is simply to state your income (money coming in), and examine your expenses (money going out). The difference between your income and expenses represent your cash flow budget and it should preferably be always in the positive (income exceeds expenses). 

Below is an example of how everyday expenses can add up over time. A successful budget helps you recognize your need from your wants and helps you control wasteful spending.

Short-term Budgets

Budgets can be used to plan monthly spending. Use this Microsoft Excel form or create your own to make your own monthly budget. For income, be sure to include things like gifts and financial aid. For the expenses, don’t forget gas, cell phone, or school textbooks.

Long-term Budgets

• Saving for a major purchase: Use budgets to figure out how much you will need to save monthly or weekly for a large purchase, such as a car. Download a savings worksheet.
• Paying off debt: Budgets can also be used to help you pay off debt. Download a debt payoff worksheet.