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May is Women's Health Month! Whether you're heading into exams or already out for the summer, make sure you're doing good for your body as well as your mind. Live long and get your healthy on with our video guide to healthy living (hint: there's frozen yogurt involved)! | |
Make the Most of Your Money
Have you ever pulled $20 out of the ATM and two hours later you had no idea how you spent the money? Having a spending plan is a way to help you recognize what you’ve been spending your money on and what changes you may want to make. Use these simple steps:
- Go through your bank statements and credit card statements. Put the money you spend in categories so you can see what you’ve spent your money on. Once you see in black and white that you’re spending $400 on fast food it might help you make some changes. Use software programs like Microsoft Money or Intuit’s Quickbooks—you can upload your bank statements right into the programs. Notice all the money that you spent on non-essential items and move on to step number two.
- Make a list of your fixed expenses—the bills that you have to pay every month. For example, your rent/mortgage, lights, water, gas, car insurance, credit cards, etc.
- Make a list of your variable expenses; the bills that may increase or decrease based on your behavior. For example, magazine subscriptions.
- Make a line on your list that says, “My Emergency Fund”. You are going to start paying yourself every month just like you pay everyone else. I suggest trying to build up 6-12 months worth of income. When an emergency comes—and there will always be an emergency—you’ll be ready.
- Make a line that says, “Retirement”. Even if you can only put $5 in to start, that’s fine; you need to start putting money away for your later years. The more you put away now, the less you have to worry later, especially when compound interest comes into play (when interest earns interest).
- Whatever money you have left, go wild! You know what your fixed expenses will cost every month, what your upcoming variable expenses will be, you’ve put money away for your emergency fund, and you’ve started contributing to your retirement account. The money left over is called your “discretionary income.” Enjoy spending it knowing that you’re doing everything you need to be doing to become, or stay, financially stable.
Adapted from “10 Things College Students Need to Know About Money” by Shay Olivarria.