Tax season is upon us. If you’re like me and love numbers, you might even anticipate the day you receive your W-2’s with excitement. Completing my taxes each year also serves as an opportunity to think about how I budget my money. Knowing that graduation was less than a year away I met with DePaul’s Financial Fitness Office last August.
Determining how to balance living expenses, saving for graduate school, and the looming repayment of student loans in the most effective way can be tricky. Luckily, DePaul has an office that will help you make your budgeting goals clear! Located in both Lincoln Park and the Loop, Financial Fitness is a campus resource that can benefit all students. In August I had the opportunity to meet with Natalie Daniels. She shared that the popular “80-10-10” rule was a good place to state. Within this rule, 80% of income goes towards monthly expenses, 10% directly to savings, and 10% to debt repayment. As an independent student with a large amount of student loans, the goal I set for myself after the meeting was to trend around “45-55”. The 45% makes up for all expenses, while the other 55% goes towards savings and loan repayment. In my 45% I also include short term savings goals such as purchasing plane tickets for a trip. The money I set aside for savings is meant for long term savings. With this goal I’ve been realistic in knowing that I won’t always be able to predict expenses such as a car repairs and out of pocket medical expenses. This is why my “45-55” rule is a trend, as long as my percentages average out over the quarter and then entire year, I’m on track.
For now, my budget is very conservative. I learned from both meeting with Natalie and the Financial Fitness website that I should be capitalizing off of the fact that being in school and living on campus saves me from the costs of rent and utilities that I would be paying if I were living off campus. Saving more now will help offset the shock of having more necessary expenses when I graduate. I highly recommend checking out the Financial Fitness
website, even before you start classes at DePaul! The spot I’ve found the most helpful is by choosing “About Us” at the top, and then navigating to “Infographics Gallery