KANSAN.COM THE UNIVERSITY DAILY KANSAN / MONDAY, APRIL 5, 2010 APARTMENT GUIDE
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How to budget on limited income
BY SARAH MCCABE smccabe@kansan.com
In today's economy, planning a budget is essential for living on a limited income. Having a basic plan in your head is good, but for a budget to be most effective, it needs to be written down either on paper or on a computer so your expenses and leftover money can be seen clearly.
The first step to planning a budget is determining how much money is coming in every month. This amount is the cap to any expenditures for that month.
"I am living off of student loans and I only have $3000 a semester," says Lenexa Senior Lauren Anderson. "I know I have to pay for things like electricity and the Internet, so I can only spend so much extra."
Next make a list of all bills and order them by their due dates. Once this is done, it is easy to see which bills must be paid that month and which bills can be put off until next. Also, decide if you want to put money into savings, which can be incredibly beneficial in an emergency.
"The biggest mistake people make is they don't take into account things they don't
know. You have to factor in the unexpected," says KU Economics Professor Brian Stahr.
Finally, subtract the bills and any amount going into savings from your monthly income, and this leaves you with the funds left for necessities and entertainment.
Necessities are the items you require to live from month to month. There are many ways to save money on things like food and clothing.
When shopping for groceries, buy the generic products instead of the name brand, and buy in bulk rather than small, individual packages. Also, shop in stores that offer a lot of variety so you can compare prices and insure the best deal possible. Coupons can also be very useful in making the most out of your money.
"Bargain shopping is really important," says Tucker Cox, an Overland Park junior. "I try to buy things on sale—my freezer is full of industrial-sized bags of food—and I don't have a car, so I save on insurance."
Avoid eating out as much as possible, and when you do eat out, take advantage of any specials the restaurant is offering.
For clothing, buy only what you need to get by and shop in places where you can get
more for less. Buying from the sales rack is also a great way to conserve your cash.
To save money on your bills, conserving energy is key. Turn off the lights, television, and computer and unplug any appliances when they are not in use. As the weather starts to get warmer, make use of ceiling fans or open windows in place of air conditioning. Walking, when possible, instead of driving can also reserve your gas money.
The money left over can be spent on extras, such as entertainment, and there are ways you can make this last as well. Instead of going to the movies on the weekend, which can cost up to $20 including snacks, programs such as Netflix offer unlimited movie rental with no late fees for as little as $4.99 a month. If you have iTunes, you can rent or buy movies cheaper from them than at the store. Independent movie rentals, such as Liberty Hall, also have lower prices than chain rentals, such as Blockbuster.
In general, shop wisely: don't buy anything on impulse. Wait at least 24 hours to decide if you really want it and will use it. If there's something you want but can't afford, save for it.
Being money-savvy in every aspect of your
Photo illustration by Jerry Wang/KANSAN
Using coupons is one way to save money when living on a budget. Other ways to save money include planning a budget, conserving energy and buying food in bulk.
life is important to ensure that you are getting the most for the money you have.
Edited by Ashley Montgomery