My Students’ Blog

How Budgeting Can Help You

By ViviAnne B.

“Money doesn’t grow on trees!” is a saying I’ve heard one two many times. What about you? Every time I heard it, I would roll my eyes and never take it seriously. That is until I realized how much money seriously does not grow on trees. Managing your money and finances can be difficult, if you were never taught a good budgeting plan, or never taught how easy it is to go into severe debt. Debt can become a severe problem quickly. Here’s how to prevent it and manage it. 

Many don’t realize how quickly it can happen. College is a big one that can send a lot of people spiraling in loans and debt before they even know it. I know you think, “Hey, after my college education I’m gonna have a great job anyway. I can just pay my student loans then!” Sure, you could do that, but you would most likely be paying those bills for a very long time with the interest that’s going to be built up. Whether you’re going into college or some other type of schooling, you’re going to need to learn how to properly manage your money, how to prepare and plan, and how to just save. 

Receiving a more hefty paycheck can be exciting, but, if you don’t properly budget that paycheck between your needs and wants, you’re in trouble. 

Why would you create a budget? Creating a friendly budget can reduce stress and anxiety levels, can help you achieve your financial goals, and can help you to be more comfortable in your everyday spending. I know I’m not the only one who has gotten a paycheck and blown half of it in a day, having no idea how or where that money went. Receiving a more hefty paycheck can be exciting, but, if you don’t properly budget that paycheck between your needs and wants, you’re in trouble. 

My dad, John Brus, is very good at budgeting his money. I asked him if he had any methods he uses to keep track of his money, and one thing he said was that he pays attention to his bank statements a lot. Another question I asked was if there was anything he prioritized each paycheck, and he said his priority for his paycheck is to put his monthly bill money plus a couple hundred in his bank account, and keep the remainder in cash. Now he is really good at keeping track of cash. Someone just starting to budget may not be as skilled at it.

Along with my other questions, I also asked him about the “secret money stealer” for everybody- if there are activities he doesn’t do or things he doesn’t buy in order to stay out of debt. He replied that he doesn’t do a lot of expensive activities, but he considers his finances before deciding to do anything out of the blue. If he knows there will be a struggle because he does that activity, he simply won’t do it.

Another person I asked questions was Misty Ball. Misty is someone that uses budgeting all the time, and some of her advice on how she budgets can help you. One way that Mrs. Ball saves her money is by going thrifting instead of shopping at those expensive name brand stores. She also spends time looking for the sales at grocery stores, and even makes sure to shop around at different stores to save money. Something that Misty does is split her paychecks. For example, one paycheck is groceries, snacks for the kids, dinners for the week, etc. The next paycheck can be toiletries, laundry necessities, even clothes. Obviously if something is needed at a different time it’s okay to buy that, but learning how to split those needs along with your monthly bills can be extremely helpful in keeping track of your money. Misty says, “If you go to the store too much, you’re gonna buy things you don’t need, and in the long run you’re going to spend too much money.”

Knowing the struggle of money can make you want to budget and do it correctly. Calculating your finances is the first step to saving, budgeting, and putting less stress on yourself. The website linked gives a detailed list of a step by step method to budgeting, along with how to properly calculate your finances.  Another thing you could to look into is how to lower your bills.

Debt is something that people struggle with a lot. It is not always from spending too much on a credit card. It comes from many things- buying a home, a car, college loans. When you take out a loan for these things, you are in debt. Whether it be a couple thousand dollars or more than that, you are in debt. NerdWallet is a popular website that can help with debt, and this specific link gives understandable tips and tricks on how to pay off your debt. It talks about strategies and how to understand your debt. It can help you choose the correct path you should take. 

The biggest part in creating a budget is sticking to it. It is all on you; you are the one that’s choosing to do it. You have to hold yourself accountable, and be ready to lose some things, like those 10 subscriptions you pay for. Budgeting can really help you with stress for money, spending problems, debts, and more, but only if you allow yourself to do it. Creating your own plan according to your lifestyle is important, but make sure to discipline yourself to reach your goals as well.