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Budgeting My Paycheck?
So I'm a high school senior, 17, and I want to work on budgeting my paychecks. I work at McDonalds, make about $7.43 and hour, and usually work 15-20 hours a week, maybe a little more, and I do pay taxes and do the McScholars which takes out 50ยข an hour on top of whatever tax is. I get paid bi-weekly and the checks are typically between $100 and $200. I tend to be really bad about making my money last, between buying things i actually need and then blowing the rest on junk food i dont need to buy, unneccisarily eating at work, and getting other random things I dont need. I have been settinf aside between $40 and $80 each paycheck, but I was wondering if anyone could give me an idea on how I could start budgeting? I don't drive or have a vehicle yet. I hope this information is helpful in giving me an answer, and thanks in advance!
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It is hard to tell someone how to budget their money without knowing exactly what their needs are though there are some rules to follow.
If you want to save money the best way to do so is not to see the money at all . Meaning see if McDonalds has a payroll savings plan you can contribute too. This is an after tax program where they take out a specific amount of money from each paycheck and send it to your savings account. Out of sight out of mind so to speak.
Next with the remainder of your paycheck you need to sit down and make a list of just what you need each week and each month. Needs being school supplies if your parents are not providing which would include paper, pens notebooks and other supplies.
Clothes are not a necessity as by law your parents must supply your clothes until you're 18 the same with food and medicine. Being female I'm sure you need makeup and things like that so this would have to be budgeted for.
Your budget would look something like this.
School supplies
Makeup
Misc. Clothes
Female needs
Entertainment
Cell phone
Contingency funds
Every budget should have contingency fund These are funds generally used for unplanned emergencies.
Add any line items I may have missed though I think this covers your needs for now. Female needs would be Tampons or pads.
Think about how much you spend in each category each week and start saving receipts when making purchases, even for fast food. Your budget at first will have to be flexible until you have a better idea of your spending.
To start allot an amount of what you think you need in each category. Entertainment includes going out with the girls, junk or fast food.
Set up a spreadsheet in your computer with each budget line at the top of a column and the day of the week on the right hand side. Each day total your receipts for each budget line and enter it into your spreadsheet. At the end of the week total the columns and see how much you spent under each heading. Adjust your budget accordingly.
Don't forget your contingency fund as this rolls over or the remainder rolls over each week and you add to it hopefully the same amount until you have about 2 to 3 months pay in contingency fund.
IF you do this and learn to budget staying within budget you will be ready to go off to college next fall.
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