The Skyliner

Issue date: 4/9/08 Section: Entertainment & Features

Admit it. You consume Ramen noodles on a regular-even daily-basis. And it is not because you love Ramen, it is because your snack budget has been on a diet since you moved on campus. In fact, you wonder if you even have a snack budget.

Between textbooks, gas and late-night trips to the store, the amount of money in your bank account can dwindle quickly. Add in a weekend vacation with your roommates or a shopping trip, and you might be left with less than nothing if you are not careful.

While there are so many things to consider when dealing with even meager finances, these two important tips can put you on the right track.

First of all, make a budget and stick to it.

It sounds intimidating, but it is really the key to making peace with your checking account.

Start by looking at your pay stubs from the last three or four months and get an idea of how much money you make per month. Do not base your budget on the highest-earning month. Be sure to have some leeway in case you miss a day of work. Once you are comfortable with the number, start allocating.

Know your priorities when you allocate your earnings. Begin with things that must be paid every month, such as tithes and offerings and loan payments.

After setting aside money for savings, organize your financial priorities. Gas, food, and other everyday necessities should be included before you move on to clothing and entertainment.

If you use a credit card, pay off your entire balance on time and do not forget to consider your monthly finance charges when budgeting.

Now comes the hard part-stick to your budget.

If you need to shift things around to accommodate rising gas prices or a shopping trip, try to plan ahead. Avoid cheating yourself out of important things in order to buy something that you can wait for.

Second, save your money.

When you get a paycheck, the first thing you should invest in is God's kingdom. The second place your money should go is into a savings account.

While it may be tempting to spend the $50 you intended to save, you should never "steal" from yourself in order to splurge. Learn to think long-term, and you will see why.

Having money stored in a savings account gives you a financial cushion to fall on when the unexpected happens.

Considering the fact that you do not budget for your car to break down or for a plane ticket to your twice-removed-third-cousin's wedding (which your mother insists you attend), these unplanned events could essentially break your bank if you do not have a backup plan.

Even small savings accounts can mean the difference between problem and disaster. So be sure to dedicate a portion of your income to savings.

Saving money also gives you a financial future. It is never too early to begin planning for future financial responsibilities.

Once you graduate (or perhaps even before), many things will demand your money: student loans, houses, weddings, vehicles, etc. Never stop saving, even when you think you have a comfortable financial cushion for your future to depend on.

To learn more… More principles of budgeting and financial responsibility can be found at kiplinger.com. Start your research by reading "Lessons I've Learned From Being Broke" by Erin Burt.

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