Some expenses - such as food, clothes, shelter, tuition, or organization dues - are necessary. But what do you wish you could spend your money on? These wishes are your spending goals. It helps to write down these goals and decide which ones to work on first, second, and so on.

Rule #1

Set spending goals. These can act as a guide to help you spend money for the things that are most important to you. L ist your spending goals in the chart below. In the first column, write down the things you would like to have or do soon, say within the next six months. In the second column, list the things you would like to do in three or four years.

Spending Goals

Plan Ahead For Some Expenses

What do you spend your money on? Do you ever wonder where all your money goes? If you plan ahead and estimate your expenses, you will be better prepared to handle expenses when they occur.

Some money is phantom money - it just seems to disappear from your wallet. Many times phantom money is actually spent on items such as snacks, magazines, and/or stamps. Over time, amounts spent on these items add up to a large amount of money. For example, 50 cents a day for a soda can add up to more than $125 a year! Not that drinking a can of soda a day is bad, but you may decide to save that money for something else.

Rule #2

Watch for phantom money spending. For one or two weeks, keep track of all the money you spend. Then ask yourself, "Do I really want to spend my money on these things?"

Spending Record

Annual Spending Calender

Plan ahead for your expenses by creating an annual spending calendar.Write in the expenses you will have once or twice a year. This should help you remember when large expenses occur. You may be able to spread these out over the year if you plan ahead.

Matching Expenses And Income

Now you are ready to try to match expenses with income. Just follow the steps listed below to set up your own spending plan.

Step 1. On the top line, write down the income you expect to receive each week. This could be money from a part-time job, parents, scholarship, and/or student loan.

Step 2. In the top half of the worksheet, list your fixed expenses. Fixed expenses are those you pay a specific amount of money for every week or month for a specified period of time. These include budget items such as tuition, rent, credit card payments, and car payments. Check your spending calendar to be sure you have included all of them. You may need to spread some expenses over two or more weeks.

Step 3. As you list a fixed expense, subtract it from the amount left from your income.

Step 4. List your flexible expenses in the bottom half of the worksheet. Flexible expenses vary from week to week and can be controlled and managed to some extent. Examples of flexible expenses include food, clothing, gasoline, telephone, and personal care. Again, check your spending calendar to be sure you have included all of your flexible expenses. You may need to spread some expenses over several weeks.

Step 5. As you list a flexible expense, subtract it from the amount you have left from your income.

Worksheet 4 - Spending Plan