Budgeting and Money Management
Budgeting and managing your money are key skills to develop throughout your life, especially throughout your post-secondary journey. Our guest speaker Terry Bennet, a Money Coach from McMaster University, shared a 5-step system for effectively managing your money, check it out below!
Step 1: The first step to managing your money is Getting Organized! You will want to create a system to help you track your spending over time. This could be through spreadsheets, banking apps, or external services like Mint.com.
Step 2: Once you have a system you need to Outline Your Expenses. There are two types of expenses: fixed and discretionary.
Fixed expenses are due monthly on the same day
Rent, utilities, cell phone bill etc
Discretionary expenses can vary in amount
Clothes, entertainment, eating out etc
Step 3: A key step to managing your money is to calculate how much income you make monthly, this can be done through Identifying Your Sources of Income.
Sources of income can include:
Step 4: Balancing Your Budget. This is an important step in order to put priority spending on areas that require them the most and to avoid excessive and overspending.
Here are a few things to consider when you are making your budget:
Look for cheaper and/or free alternatives to accomplish your goal.
Evaluate your Needs vs Wants
Pay attention to the little things. It adds up!
Review your contracts (i.e phone bill, living arrangement etc.)
Step 5: Review, Stick to it and Adjust as Necessary. With changing or evolving circumstances, expenses or income, make a conscious effort to update your budget accordingly.
Following this 5 step approach will help you create a budget that will effectively manage your money.
We look forward to seeing you all at our final workshop of the school year on Monday, June 14 2021!
Stay safe and healthy.
All the best,
The BOLD Team