How a Recent Graduate Should Live On a Budget

Friday, August 22, 2014

Graduate budgeingOnce you have graduated, it will be hard for you to not be tempted into establishing yourself into a thriving independent individual. This can include getting your own apartment and a new car among other things. However, it’s hard to have it all when you are first starting out.    

The Basics of Budgeting 

The initial step before planning a budget for yourself is to make sure that you assess the money available to you each month. This means that you have to evaluate the amount of money you bring home after your employer deducts your taxes and other major deductions. 

Evaluating your Expenses

After evaluating what you actually earn (your revenue), you should evaluate your expenses and how you may want to spend your money. Consider the reoccurring bills that you will have each month like rent, utilities, groceries, phone, etc.  By doing so, you will be able to distribute your wages based on priority expenses. 

It is possible that you may end up having some money left after planning your finances. The remaining money can be used as savings, which is highly advisable to deal with unforeseen circumstances. You can always start small and eventually increase your savings in no time. 

To get a better picture of your finances, you can also add your monthly savings and spending, which is then to be subtracted from your take-home pay. This will help you determine whether you need to increase your income or spend less. 

Now that you have a better idea on how to live wisely, you can start planning your budget as soon as possible. Starting late is better than never starting at all, don’t you think?