As if college isn't difficult enough, after graduation you are thrown into the real world. Student loans are due, your health insurance expires, you have to find a Phoenix apartment and you need to find a job! You don't get much more real than that. One of the most important things a graduate must learn is how to create a budget and actually stick to it. Making money is great, but spending and saving wisely is fantastic. A carefully planned budget is the first step to success after graduation.

Recording Expenses

Before you set up your budget, you have to know how much money you spend on necessary items every month. Necessities include groceries, apartment rent, utilities, student loans, and transportation. Phoenix apartments and the general cost of living can be expensive, but when you know how much money you have to spend each month, you can figure out how much you can spend on fun items.

Pay Yourself

Saving is essential for the future; you don't want to pay apartment rent forever. You never know what lies around the corner. You might need to get a new transmission, pay for an unexpected surgery, or travel to a last minute wedding or funeral. Having enough money to get through those unexpected events is a lifesaver. It is wise to save at least 10% of your net earnings each paycheck. Of course, it is always beneficial if you can save more than that.

Budget Your Extra Money

Once you have recorded all your necessary expenses and set aside 10% for savings, you can spend the rest on whatever you please. You can use the extra money for cable television, dining out, new clothes or DVDs, or entertainment. Decide how much money you will allow yourself each paycheck for frivolous items. If it's $50, then stick to $50. Don't spend any more money than your budget allows.  If your apartment rent makes up more than 30% of your monthly income, you may be over extending yourself.  See our financial tips for Arizona State Grads part 1 and Arizona State Grads part 2 to get ideas and tips, and don't forget to contact Boulder Creek Apartments to schedule a community tour.

Sticking to a Budget

Of course there is nothing you can do about overspending on necessary items. For example, utilities rise and fall each month. You can, however, control how much you spend on entertainment and non necessary items. Each paycheck, withdraw your designated amount of "mad money" and put it in a special place. When you want to purchase something fun, use cash. Having physical cash helps keep your spending in check. Never use your credit or debit cards for entertainment.

Graduaton is an exciting time.  Your first Phoenix apartment search should be just as exciting. While it can be liberating to finish your studies, it can also be financially stressful. Use this post-graduate budgeting plan to minimize your college graduation stress.

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