 More
income than expenses is key
|  Dear
Dr. Don,
I am a college student who just got her first job
a few days ago. I was wondering what tips you might have for someone
who is starting off with nothing, and is about to be responsible for
all the bills on her own. Thanks!
-- Lindsay Launch
 Dear
Lindsay,
The key here is to have more money coming in
than you have in expenses. I know that sounds flip, but that's what
living within your means is all about. Put together a list of your
monthly expenses. Match that against your expected monthly income.
If you have more expenses than income then you either have to reduce
your expenses, increase your income or borrow to finance your expenses.
The Bankrate
College Budget worksheet will help you lay it all out.
I prefer to call it a spending
plan versus a budget, but the idea is the same, to manage your cash
flow. Add a line in the worksheet for savings. You'll want to build
a cash reserve and plan for short-term financial goals like spring
break vacation, holiday expenses, etc.
There are good reasons to have
a credit card, but too many college students have problems managing
credit. Read the Bankrate feature, "Despite
debt dangers, college kids need credit cards," for more
on getting credit and using it responsibly. Take on a mind-set that
you won't carry a balance on the card unless it's a financial emergency,
and work on building that cash reserve so you don't need to use
credit to get you through a financial emergency.
Congratulations on the new job and good luck
in school.
| 
