A monthly expense calculator is a tool used to help you put together a budget and start managing your money. For college students, beginning money management early is essential to your path towards financial success.
Not only can it help you start saving money towards the future, but it will prepare you for those days when expenses get tight, and you’re paying student loans. This might seems years away right now — it comes much faster than you think.
So, using a monthly expense calculator can help you get started.
What is a monthly expense calculator?
It’s an automated online calculator that takes all of your expenses and puts them against your salary. It will give you a clear picture of the money that comes into your account and the money going out.
Knowing where your money is going can help you make cuts to start saving more or putting your money towards more important things (like early student loan payments).
How does a monthly expense calculator work?
First, you’ll want to gather all of your income and expense information together. You can do this by looking at a month over month view of your bank account and your pay stubs.
Once you have all the information you need, the calculator will walk you through what expenses need to enter.
Then it does all the calculations for you.
Next up, you’ll want to take that information and put it into a monthly budget that you try and stick to. Give yourself a little wiggle room for the first couple of months. It can take some work getting used to tracking your expenses and staying within your budget at first.
You don’t necessarily need a calculator to get started, but they can be a big help. Whatever you do, get started early. You’ll be surprised how much it can help you when it’s finally time to graduate college and take on all those big, real-life responsibilities and expenses.