Starting out and managing a budget
Starting out with little or no money can be a challenge. People that are about to go to college are searching for credit to help them pay for books, food, and school supplies. Student loans are not always enough. Credit cards are easy to apply for and receive. All one needs is a way to pay it back. After gathering 2-3 credit cards, a student will begin to create debt. This debt will eventually come back to haunt them because it will have to be paid back. How does a student pay back debt? Some use their title to their car as a way to receive a personal loan or they might search for loans for people with bad credit.
They pray they will be able to pay this loan off so that they do not lose their car. At last, the grant payment or the student loan comes through and the student has money. If the student is smart, he or she will set up a budget. The grant or student loan will not last very long if the student goes spending crazy instead of paying bills. A call to the parents will sometimes save the students credit. If the parents can not pay off the debt, the student will begin to create a negative reputation and poor credit.
Managing your budget can be a little difficult unless you have excess funds left after you pay all of your bills. A budget is all the things you have to pay in a week or month. You set up your money coming in and money going out on a list. The money coming in must be more than the money going out or you will never meet your budget. Using a calendar, write down the dates the bills are due. Using the same calendar, write down paydays. Set your budget to match your paychecks. If you are paid weekly, divide your bills into 4 payments. If you can, divide them in 3 so that the 4th is free for mishaps or unscheduled events.
It is very hard to live on a budget unless you set a schedule for payments. Have a schedule of payments and when all the bills are due. Send out these payments as soon as the money is deposited in your bank account. Do not leave bill money in your bank account too long. If you do, it will become easy to use the money on other things. If you pay your bills on time you can build up a great credit history.
Another issue that makes living on a budget difficult is unexpected mishaps or bills that are not normal. Doctor visits and co-pays, car repairs, holidays, and birthdays. If you are living paycheck to paycheck, and one of these unexpected things happen, you can have issues with your bill payments being late.