When you start out on your own, learning how to budget is a valuable lesson. Addressing the following issues can make a big difference in establishing solid financial footing and reaching your long-term goals.

• How much money do you have?
  
• Where does it go?
  
• How much needs to be socked away for the future?
  
• How are you going to stick to your budget?
  
• When do you pay your bills?
  
• Do you pay your bills first then see how much you have
  left over for your daily needs?

Smarten up on money matters here by taking advantage of the information, tools, and resources provided.

Money comes, and goes faster than you can say, “I want my pizza delivered.” Understanding the flow of your own spending habits is critical to saving for that proverbial rainy day.

Formulating a budget. Take a complete inventory of your monthly income – salary from a part-time or summer job, internship stipend, student loan disbursements, scholarships, parents’ financial support, grandparents’ gifts, etc. Then list your monthly expenses by those that are “fixed” (includes tuition, housing and books) and those that are “flexible” (vary in frequency and amount, such as supporting an online shopping habit, text messaging, or even dining out). Your goal is to keep your expenses as far below your income as possible.

Check your performance. At the end of the first month, and every month thereafter, reevaluate your actual expenses – fixed, flexible, and especially unplanned – to understand where your money really goes and how much you can realistically save. Be flexible – as your life changes, so do your goals and needs — meaning your budget will change from time to time as well. Back to top.

Whether your dream is for something tiny enough to fit in your pocket, like an MP3 player, or as big as a car, staying grounded in financial reality and building up your savings can help you attain your goals.

Set your savings goal. Having something to work for — buying a new laptop, backpacking through Europe — is a great motivation for saving. But don’t forget saving for long-term goals as well — a down payment on a car or house, even retirement. Once you’ve set a goal, track how much money you receive — whether from a job, loan disbursements or even a monthly allowance — and consider other sources of “income” as well. Then try to set aside at least five percent of your total monthly income. Once you get used to it, see if you can set aside more. Put the money in a savings account, a certificate of deposit, or invest it yourself.

If you find you can’t even save five percent of your monthly income, then you really need to evaluate how you are spending your money. Think about the activities and purchases you fund on a daily, weekly or monthly basis. There are a number of ways to cut costs out of your budget. For example, consider:

• Are you using all the minutes on your cell phone plan?
  
• Do you really need that specialty coffee drink, or can you live with regular coffee?
  
• Are you eating out every day?

Savings options. Let’s say you’re saving — where do you put the money? Leaving it under the bed certainly isn’t the best option these days, at least not when you can grow your money by putting it in an interest-bearing savings account or a certificate of deposit. If you’re interested in growing your money for bigger purchases and retirement, there are other investment options. You can find out more about the different types of savings and investment products available at www.Chase.com under Advice & Planning. Back to top.

Use this quick and easy tool to find out how much of your income is truly “discretionary,” or simply put, the part of your budget not used to pay for necessary items like tuition and housing. That’s the money you can “play” with when you want to cut back and save.

Remember, once you’ve done your financial homework and have created a budget that works for you, the most important thing you can do is to stick with it. Back to top.