One of the best ways to manage your money is to use a budget to track how much you earn and how much you spend each month. Use your budget to set financial and savings goals, prepare for emergency expenses and manage your student loan obligation.
How to Budget
To create a budget:
- Identify your income. List all your income sources.
- Track your expenses. Determine how much you spend now. Look at receipts and bills, or track all your expenses for a month.
- Analyze the result. Subtract your total expenses from your total income using a budget calculator. If you earn more than you spend, you may want to pay off more debt or put more into savings. If you spend more than you earn, though, your top priority should be to reduce expenses or increase your income.