Preparing a budgetary plan towards your study abroad program shows how well you’ll be able to manage your finances in college. This is the best way of staying out of college debt. In order to achieve this, this article has highlighted a few points to guide you when creating your budget.
Know Your Income
All your expenses in college will be based on your personal income. Your personal income can be from any of the following; salary from a part time job, allowance from home, grants/scholarships and so on. Having an idea of the general overview of your income will guide how you spend.
List out your expenses
This aspect should be divided into two groups, namely; the annual expenses and daily expenses. For example, the cost of tuition fee, housing etc. should be included in your annual expenses. The daily expenses can be cost of transportation, feeding etc.
Allocating Cost to your expenses
It is better to overestimate cost rather than underestimating. When an extra money is saved from the cost of one or more of the expenses, such money can be kept and might be useful for something else in as much the structure of the budget is not affected.
Plan for Miscellaneous expenses
These are unplanned expenses that are very important. A budget without this is an incomplete budget which tends to crash. Plans should be made for unforeseen circumstances. For example, you might be asked to purchase a book for a particular course work.
Balance your budget
Make sure the total expenditure is not more than the total income. If your expenditure is more than the total income, there is a high probability that you’ll run into debt. Look for ways to balance your budget either by cutting down some of your expenses but if you think all your expenses are important, look for alternate ways of adding to your income. For instance, during school breaks you can decide to work extra hours in order to raise more money that will cater for your needs.