The most common mistake students make with paying off student debt, is not having a budget.
why bother with a budget, I donât even have a job
or Iâll budget later when I have a real job, when Iâm actually making money.
95% of the student we talked to had never made a budget!
 This is a big mistake. Having a budget early on allows you to set a realistic debt repayment plan, and helps you take responsibility of your finances early on. With a budget, you can track exactly where your money goes which is an eye opener for many students.
 So what exactly goes into budget planning? Here are the 5 Steps for making a Budget
 Figure out EXACTLY how much youâre earning now, AFTER TAXES on a monthly, and/or yearly basis. This includes all income you will receive including loans, scholarships, gifts, and grants. It is important to consider all aspects of income to ensure you get the most accurate results
 If you are not currently employed, estimate how much you will be working at a minimum wage job with a realistic amount of hours. This will help you start picturing what you can accomplish now and make it easier when you start earning income.  Of course, upon finding a job its best to re-evaluate your budget.
Calculate all your expenses, both fixed and variable.
FIXED EXPENSES: are expenses that are necessary (your needs) and generally remain unchanged. Included in this category are things like tuition or student debt, cell phone bills, car/insurance payments, rent, ect Everything in this category must be ESSENTIAL. Your daily French vanilla frapp from Starbucks doesnât count! If you need help with this, print out a copy of your last months bank statement and start from there.
Also, donât forget to automatically delegate 5%-10% of your income to saving under fixed expenses. This is a MUST
Subtract youâre fixed expenses from your income. This will provide you with an amount for your variable expenses. Important! This number cannot be 0 or a negative. This means that you have absolutely no variable income, and therefore will be unable to cope with any unforeseen expenses (which most definitely will come up). If you find this is the case, go back to your fixed expenses. Try and modify what you can if the option is available (ex, switch to a different cell phone plan, get rid of your vehicle)
If you find youâre still in a hole, consider looking for ways to increase your income. This can include finding another job, or selling some possessions.
Once you have the remaining number, build a budget for your variable expenses.
VARIABLE EXPENSES: Expenses that are not essential, and differ continuously. This category includes things like eating out, clothes, haircuts, manicures & pedicures. Outline approximately how much they each cost and arrange them in hierarchy of most essential to least. Itâs most important to be realistic with your variable expenses. Debt repayment is a long-term ordeal, so itâs important to make your budget something you can stick to. If you know you love to shop, and youâve given yourself only $12 for clothes annually, youâll most likely fail to stick to it.
Stick to the budget! Integrating new practices into your daily routine is always difficult at first, but budgeting is a necessary skill that will improve your financial responsibility. Of course things will come up here and there, and every so often youâll need to make changes, but the sooner you get used to working with a budget, the quicker youâll pay down your debt.
 For more in-depth information on budgeting and planning, check out these links
http://www.youtube.com/watch?v=Nu521bJGtZI
http://www.gailvazoxlade.com/resources/guide_to_building_budget.html
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