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Office of Financial Aid
 

   
Faculty/Staff Directory  Faculty/Staff Directory
Phone  850.599.3730
Fax  

Office of Financial Aid
1700 Lee Hall Drive
101 Foote Hilyer Administration Center
Tallahassee, FL 32307
 
 
How to Budget

Financial literacy begins with budgeting and it can be a lot easier to budget when you have money to budget with. Take these simple steps:

Step 1 - Review your finances.

 

Money Comes In

Money Goes Out

Paycheck; Family and friends;

Savings; and other income

(child support, etc.)

Rent/mortgage; Food; Utilities; Clothing; Transportation; Insurance; Student Loan payments; other debts and expenses; and Savings

 

Step 2 – My Needs vs. Wants.

 

Needs

Wants

Food; Clothing; Shelter (home);

Medical/dental visits; Medicine

Computer, internet, Cell phone/smart phone; Cable; Movies and entertainment; Car; and Pets

 

Step 3 – Why do you spend money and how to save.

 

Financial Behavior

Budgeting Strategy

· Impulse buying

· Buying name-brand

· Not knowing where money goes

· Paycheck spent before you pay your bills

· Put yourself on an allowance (Budget!)

· Buy generic or previously owned

· Keep track of how much you spend

· Use direct deposit to save

 

Step 4 – Create a budget that works for you.

 

Creating your budget is nothing more than simple math. Deduct your expenses (needs) from your income and you will know how much you have left to spend on your "wants" (spending money).

 

    Monthly income

     30% of monthly income (for taxes and other deductions)
     Monthly expenses
(including savings)                              .

  =   Spending money

 

Helpful Tools:

-                   -          Financial Planner Spreadsheet

-          www.quicken.intuit.com

-          www.mint.com

-          www.budgetpulse.com

How to Save

People agree that having a budget and saving is a good thing but find it difficult to do so every month. But it is possible to save for your short and long-term goals, for emergencies, and even retirement.

The choice is up to you!

Ways to Save

Reduce housing budget   ~   Reduce household expenses

Reduce food bills   ~   Reduce utilities/cell phone bills

Reduce transportation costs   ~   Reduce miscellaneous expenses

 

The 70-20-10 Rule

 One easy way to save is to follow the 70-20-10 Rule.

· 70% for living expenses (rent, food, clothing, gasoline)

· 20% for savings

· 10% for retirement

or  10% for debt (student loans, car payments, credit cards)

or  5% for emergencies (car repairs, medical expenses, unemployment)

                    and 5% for specific goals (vacation, car, tuition, computer)