8. Budgeting: How to Manage Your Money

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One of the great things about being independent is the freedom that comes from that independence. Living on your own, or sharing a place with someone else comes with financial responsibilities though. In order to pay your fair share of rent and living expenses, it is a good idea to create a budget. A budget is the practice of gathering your income and your expenses to help you meet your obligations. It will help you keep track of your expenses so that you won't fall short at the end of the month.

Along with allowing for your monthly rent, other expenses that you may want to account for are food, clothing, utilities, transportation, phone and entertainment. There may be other expenses you may have to pay monthly, but those depend on the individual's lifestyle. Only you can determine what expenses have the most priority in your life. Managing money can be a tricky thing. There often are unexpected expenses that come up from time-to time so it is a good idea to try to save a portion of your monthly income. Having some savings can be very helpful when an unexpected bill comes your way.

Accounting for all your monthly expenses can also help you to identify whether or not you are living within your budget. If you find that you have more expenses than income, a budget will help you see where you can cut corners. If, for instance, you are paying too much for your cell phone, you may want to get a cheaper plan. If you are paying too much rent, then it might be wise to move to a more affordable place, or take in a roommate. Whatever financial issue you may be having, a budget will help you figure it out.

          




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