Setting up a budget is a great way to manage your finances—it’s a plan to help you figure out how you’re spending your money, where to make adjustments and ways to get ahead financially. And when you start budgeting in college, it becomes a habit that can set you up for success later on.But the hard part might be sticking to your plan, especially if you’re new to budgeting. Overspending may cause you to miss bill payments, go into debt or prevent you from reaching the financial goals you’ve set. The good news is you can learn to create a budget and actually follow it. Here’s an easy guide.

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How to make a budget…

Before digging in, decide which method works best for you. Do you want to use a pen and paper, a spreadsheet or a budgeting app? Take a look at our in-depth guide on budgeting, or learn just the basics here:

• Calculate your take-home pay. Go through your bank statements to figure out your monthly earnings. Your income may come from multiple streams like a job, your parents or another source.
• List your expenses. What do you usually spend money on? Go through your credit card or bank statements and make a list of categories, such as groceries, cellphone plan and entertainment.
• Assign an allowance. Figure out how much you can spend on each expense or category, making sure you stay within your monthly income. If you need a guideline, consider using the 50/30/20 rule.

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…and stick to that budget

This is the hard part for many people, but using the following suggestions may help you follow your budget:

1. Track your expenses

Every time you spend cash or swipe your card, make a note of what you purchased and how much it cost. It can feel like a chore at first, but it helps. Throughout the month, you can refer back to your notes and check whether you have money left in that category. This also helps you learn about your spending habits.

2. Know where you overspend

Tracking your expenses may reveal “problem areas” where you overspend. Maybe you order takeout every night of the week or sign up for more streaming apps than you could possibly use. Identifying the problem is often the first step. The next few tips can help you get your spending under control.  

3. Establish rules

You don’t have to forgo the small luxuries you enjoy, like movie trips and lunch dates with a friend. The trick is to set a limit to how often you can spend money on these things, and give yourself a spending cap. You can give yourself this allowance when setting up categories in your budget.

4. Save for a goal

It’s also OK to spend money on larger purchases, like a small vacation or a new laptop. The best approach is to save up for it over time, so you’re not going into debt or spending money that’s earmarked for another expense. For instance, if you want to spend $500 on a Spring Break vacation, then you could save about $85 a month for six months to get there. Make sure you add that short-term savings goal to your budget.  

5. Shop online (if it helps)

It may be easier to stay within your budget if you know exactly what you’re putting in your shopping cart and the amount you’re about to spend. Online shopping carts and apps show the price of the item, add any discounts you can use, and calculate taxes and shipping, so there are no surprises at checkout. Just be sure shopping apps don’t cause you to spend more just because they’re convenient.

6. Learn frugal practices

There are dozens of ways to spend less on everyday items, which can help you stay within the spending caps you’ve set up. Consider implementing a few of these practices to make frugal living a habit:

• Shop at thrift stores and “Buy Nothing” Facebook groups
• Make meals and coffee at home
• Buy used textbooks
• Take advantage of student discounts
• Use public transportation and leave your car at home
• Take online courses when possible
• Use coupons and discounts
• Buy food and household products in bulk

7. Delay discretionary purchases

By nature, an impulse purchase is something you buy suddenly without careful thought. You might think you “need” that new outfit—or maybe just the fact you want it is enough to justify the purchase. But if you consciously delay these purchases by a day, a week or a month, you have time to make a careful decision—or even lose the desire to buy it.

8. Remove shopping apps from your phone

Remember how we said shopping apps could lead to overspending? That’s because shopping apps are designed to get you to spend more; they make checkout super-easy, offer free shipping, artificially discount their prices and push products strategically. If you find yourself overspending online, remove those apps from your phone.

9. Unsubscribe from marketing emails

Hey, did you see that email from your favorite store? Everything’s on sale, and you’ve got to act fast to get what you want. This kind of message is how marketing emails push you to spend money. It works, too. In one study, 60% of respondents said marketing emails influence their purchases. You can easily get around this temptation by hitting the “unsubscribe” button.

10. Check in and adjust

Your income and expenses may change over time, so it’s only natural that your budget will evolve, too. Make time to review your expenses every month or so. Are you frequently spending less in one category? Are you quickly running out of money for another expense? You can make adjustments and add goals as needed. Ultimately, the goal is to spend mindfully and save money so you can get ahead financially.