I know, personally, I didn't realize how much money it takes to live on your own. It wasn't until I realistically priced an apartment that I realized how difficult it would be for me to maintain one directly out of college. Unless you want to live with an apartment and that is all, you will have no money. Sometimes you can have just an apartment and STILL have money. Why? All the hidden expenses. You can't live in an apartment without heat, air, insurance, electricity, or savings. You really need three months of rent saved before you're prepared to move.
I say all of this to say: as you begin working after college, you need to budget.
I'm now working on a template for my monthly budget. I have monthly bills for loans, a credit card, and I'd like to purchase a cell phone separately from my parents. I need to record and track these expenses. I need to track my pay checks. It's important to know how much you make, how much is deducted for insurance, and how much you're contributing to your 401K. Some of you maybe thinking: retirement? This early? Yes. The sooner that you start, the more you have. Plus, most companies match your contribution or a portion of your contribution. Why not take advantage of that?
Outline your expenses. Allot money for EVERYTHING. Not just the big bills, but the small expenses. For example, I can think of something to buy with every paycheck I make lol. So, I'm planning on allotting a certain amount I can spend on the desires of my heart. The basis of my budget is as follows:
10% to God
10% to Savings ( for the next couple months before my loan payments kick in, this will be increased)
80% to live on
The 80% will be divided as well. I'm going to determine how much I think is acceptable to spend on entertainment( movies, dinners, nights out). I also am going to budget for gas and car related expenses when I start driving at the end of October. There's so much more, but I won't bore you. It is essential to take everything into consideration.
The reality is 70% of Americans live paycheck to paycheck. I have no desire to work 40 hours a week and still be broke. How do we prevent this? Dumb logic would say "Well if you make enough money, you won't be broke" No. If you're a good steward over the money that is supplied to you, you won't be broke. You could be making $80,000 a year, if you don't manage it well you'll be left with zero. Make a plan and work your plan. ( When I find a budget template I like, I'll post it!)
Be money smart :)
-amb
