Budgets can help you:
Tracking your money is the first step to understanding how much money is coming in and how much is going out.
This will give you good insight on how much money you are spending in one area over another.
Example: If you spend $5 a day at school on Coffee and a Muffin, over a year you are spending $1300/yr
The best way to know how much you are spending, is to keep track of everything you spend (groceries, rent, coffee,gas etc.) for 3-6 months.
Use can use an budgeting app or software like:
Both these tools allow you to see where your money is going and if you are overspending in certain areas.
It can be very difficult for people to separate what are needs versus a want. It is important for us to be aware of what our needs are, and what are wants are so that we can easily identify these things when shopping and avoid them when necessary.
Needs are item that we need to live a safe and healthy life. We need somewhere to live, we need food to eat and water to drink. Wants are things that we would like to have because the may be fun or they make things easy. For example I want the name brand jeans that cost $150 but I can buy off brand jeans for $40 to cloth me.
Need: a necessity, something that is required or essential for life
Examples. Housing, Food, Electricity etc.
Want: something that you wish for or desire but is non essential for life
Example: Buying coffee out, New outfit for going out on Friday, a New purse or Backpack
Priority: Something that is more important that should be done first.
Where to Save Money