How I Save Money And Budget As A 20 Year Old Part-Time Working College Student

How to Budget as a 20-Year-Old Part-Time Worker/College Student

Introduction to Budgeting Method

• Camila introduces her budgeting method, emphasizing that it is based on the sinking fund approach, which has transformed her financial management since January 2020.

• She shares her past struggles with money and how this method alleviated stress related to finances and improved her mental health.

• Camila discusses transitioning from a low-paying job to a better one, highlighting the role of budgeting in managing her expenses effectively.

Tools for Budgeting

• She presents the notebooks she uses for budgeting, mentioning that she prefers ringed notebooks for ease of writing.

• Camila commits to sharing real bills and expenses in the video to provide transparency about her budgeting process.

Creating a Calendar for Budgeting

• The first step in her budgeting process involves creating a calendar that outlines paydays, bill due dates, and spending days.

• She lists specific due dates for various bills such as rent, car insurance, credit card payments, internet bill, phone bill, and subscriptions like Digit.

Setting Up the Budget Spreadsheet

• After completing the calendar, Camila begins filling out her budget spreadsheet by noting down due dates and expense amounts.

• She emphasizes color coding in her budget setup but admits to making mistakes while recording information initially.

Managing Sinking Funds

• Camila explains what sinking funds are and provides examples including categories like car maintenance, gifts for occasions, groceries, and pet care.

• She mentions having separate savings accounts for trips planned before COVID impacted travel plans.

Calculating Savings Goals

• To save for annual expenses like Christmas gifts or car registration fees, she calculates how much needs to be saved per paycheck based on total costs divided by the number of paychecks until the due date.

• For example, she aims to save $500 for Christmas by dividing it over 26 paychecks leading up to December 18th.

Finalizing Monthly Budgets

• After determining how much goes into each sinking fund category based on importance and available income from paychecks.

• Camila includes contributions towards retirement through a Roth IRA account as part of her overall financial planning strategy.

Tracking Income and Expenses

• She totals all outgoing funds at the end of each month from different accounts including bills and savings contributions.

• Before receiving new income from tips or paychecks again, she tracks expected earnings from tip checks alongside regular paycheck amounts.

Conclusion of Budgeting Process

• Finally expressing relief after completing this detailed budgeting video project which she's been eager to share with viewers.