Budgeting Ideas
Many Notre Dame students have jobs after school to earn some pocket money or help out their parents. However, with this new source of income, some people need more self-control when budgeting and thinking about what to spend their money on.
One way you can manage your spending habits is by categorizing your savings. Having categories is very important in budgeting and saving money because labeling a large sum of money makes it easier to keep track of it, so you won’t be as tempted to spend it all. These categories can include snacks, clothing, emergencies, book savings, etc. Some Notre Dame students said their strategy is to put aside half their paychecks into a savings account every so often. Others use a spreadsheet to visually see what they’re spending and how much they are saving. Having some visuals or a system to record your spending habits is very helpful when separating your money into categories.
Another way to not spend money on unnecessary things is by waiting. If there’s something you want to purchase, try waiting a week or a couple of weeks to make sure you really want the item before you buy it. One Notre Dame student, Kay Sherry ‘23 also said that taking an Economics class is a great way to understand money categorization and economic theory. Economic classes often teach decision-making, capital theory, finance theory, and price theory.
The 50/30/20 method is an additional effective budgeting strategy. It is a step-by-step guide that focuses on needs, wants, and savings from your paycheck. According to this method, your needs should make up 50 percent of your spending, including things like utilities, car payments, and groceries. Your wants should be 30 percent for expenses like eating out, streaming services, travel, or hobbies. The 20 percent savings is emergency funds, payments, or investments. However, you can adjust these percentages to fit your specific situation.
There are plenty of strategies out there to help you find the right way and balance your financial situation in a way that best suits your priorities. Good luck on your budgeting journey!
