I've tried a multitude of budgets over my few years as an undergrad. Folks, I have failed miserably when it comes to finding a budget and sticking to it. Hypocrisy may as well be stamped on my forehead-I made an oath to find a budget and stick to it as part of my New Year's vows. Color me shameful, the budget I developed was not as conducive to the life of a collegiate sophomore as I once hoped.
It never truly struck how important a solidified budget is until this year. Several unexpected (and staggering) expenses made a Houdini-like appearance, and a short stint with unemployment knocked me down a few financial notches. Yet we all must persevere, and persevere I did.
After scouring some blogs and financial wizards, I came up with a plan that fits my income and lifestyle that's practical and reasonable. Here's what I've schemed:
Of your income:
-Live off 50% (Gas, groceries, miscellaneous bills, appointment expenses, etc.)
-Save 30% (Consider this a "rainy day" fund, emergency fund, or save for something you really want or need to save for, like quarterly car insurance)
-Have fun with 20% (Itching for a new dress? Can't resist getting that overpriced latte? MAC eyeshadow? Have at it.)
So, for example, say you earn $250 on a paycheck:
-Live off $125
-Save $75
-Have fun with $50
Saving really pays off. Gals, I know we all impulse buy from time to time; lord knows the hypnotic powers of Anthropologie catalogs. But maintaining a specific financial plan will help us be better prepared for any unsettling financial waves and burdens we may face, as well as supply us the means to indulge once in a while. After all, we deserve it ;)
I'm going to keep a copy of this method in my wallet, in my ID holder, and taped inside my checkbook. I can't wait to implement this next payday.
Happy saving, lovers!