We all know that college is expensive. In addition to tuition and textbooks, you have the essentials like rent, utilities, and food... plus you might want to have a little fun. Whether that is going out to eat with friends, buying new clothes, or seeing the latest movies, being wise with your money is important.
Creating your budget doesn't have to be a scary proposition. In fact, budgeting can be quite easy. A good guide for budgeting is the 50/20/30 Rule. According to this rule, you should portion your paycheck into three buckets.
50 percent of your paycheck should be set aside to pay for the key things you need to survive. These funds would go towards rent, utilities, groceries, gas/transportation, prescriptions, and minimum payments for your current debts.
Setting aside 20% for savings will help you build your emergency fund and can also be used to pay down any debts you might have.
The last 30% should be used to pay for things that you can live without but don't want to. This money is used to cover your wants – things that make your life happier.
IU has great resources to help you make your money work for you. MoneySmarts is a program to help students make informed financial decisions before, during, and after college. If you would like to learn more about budgeting and managing debt, visit our friends at MoneySmarts!
