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Creating a personal budget is as easy as determining your income and
expenses, and then comparing the two. Even if you don’t yet have a job or you
are living with family members, understanding the process for creating a
responsible budget will serve you well. There are several resources to help you
make an educated guess at what your expenses will be.
Rent.
Look up current apartment listings on Zillow or Craigslist to determine
the rent on studio or one-bedroom apartments or visit roommate sites to
determine if that is an option in the area where your first job will be located.
Utilities.
Sites like Zillow or realtor.com include average utilities in various
neighborhoods. The utility company websites also provide averages by
month or by season, depending on the size of the dwelling and number of
inhabitants.
Food.
The USDA website provides information about the average amount
people spend on groceries weekly or monthly based on age and gender.
Transportation.
Look up the monthly cost of a transit pass in the town you
plan on moving to. If you already own a car, you probably know your
monthly repair and fuel costs. Be sure to factor in your own car insurance
policy if you have been on your parent’s policy.
Student Loans.
Talk to your financial aid officer or lending institution to find
out what the monthly payment on your loan is going to be. If the required
payment seems high, and you have federal loans, look at enrolling in a
different payment plan, such as the Pay as You Earn Plan or the Income-
Based Repayment Plan. If you are unable to get a job within six months of
graduation, putting your loans on deferment or asking for forbearance are
options to remain in good standing.
Health Insurance.
Due to recent changes with the Affordable Care Act,
you are eligible to remain on your parents’ health insurance plan until
you’re 26, as long as they let you! If remaining on your parents plan is not
an option, you can review plans on HealthCare.gov marketplace to
determine what you might need to pay each month.
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Section 18 – Planning For Your Future