Money Management

Budgeting

Managing Student Loans

Developing and maintaining a manageable budget can be challenging. Budgets aren’t one-size-fits-all; it's important to focus on developing the ideal budget to fit your unique financial needs. A budget that doesn't reflect your priorities, preferences and personality will never work.

Don’t just balance your checkbook; get a grip on your spending. Tracking your day-to-day spending can help you identify wasteful habits and tighten your purse strings. Hang on to receipts and keep tabs on cash spending so you can assign each transaction to a category, such as transportation, entertainment, personal care, etc. Categorizing expenses each month will help you determine how much you spend in different areas, so you can decide if changes need to be made. For example, if you’re spending 30% of your monthly income on dining out, you may want to consider some alternatives.

Monthly Budgeting

Click here to view a sample monthly budget worksheet.  When developing your personalized budget, be sure to include the categories you created for tracking your spending as well as any expenses that don’t occur on a monthly basis, like property taxes and insurance. Don't forget to include a section for paying yourself FIRST. Saving should be part of your monthly budget, not something you do if money is left over.

Need help deciding how much of your income should be allocated to each spending category?  Standard guidelines and sample budgets are available at bankrate.com, practicalmoneyskills.com or goodpayer.com.

Now that you’re developing a spending plan, are you looking for ways to cut back in certain categories?  Believe it or not, slight changes in your routine can make a difference.  For example, if you eat lunch out every week, chances are you’re spending an extra $1,500 to $2,000 each year.  Add another $800 to $1,000 for daily trips to the local java joint. Eliminating these budget busters can add up to big savings!

Looking for more smart ways to save? Check out this list of ideas and resources to help you save money on everything from appliances to travel.

Managing Student Loans

A student loan is the first experience with credit management for many students. To protect your credit history, you must take proactive steps to successfully repay your student loan.

• Start thinking about repayment before it begins. Make sure you adapt your budget to include your monthly student loan payment before your grace period ends. Consider your spending habits and priorities; are changes needed to make room for your loan payment?  If you think ahead, you'll be in good shape when repayment begins.
  
  
• Recognize that your student loan payment is a fixed expense.  Repaying your student loan is not optional, even if you withdraw from school.  Remember, your monthly student loan payments are just as important as your rent, car payment or any other fixed monthly expense.
  
  
• Make your loan payments on time!  If you know your payment will be late, contact your lender immediately to discuss your situation. Even if you apply for a deferment or forbearance, continue making payments on your student loan until you receive confirmation that your request has been processed and approved.
  
  
• Communicate with your lender regularly. Remember to notify your lender of any changes in your name, address or ability to repay.
  
  
• Consider different repayment schedules.  Most lenders offer a variety of repayment plans to address borrower needs.  Also, if you need more flexibility due to economic hardship, unemployment or other unforeseen circumstances, there are several options to help you keep your account current.  Bear in mind that flexible repayment programs aren't automatic - if you need help, you have to ask for it. 
  
  
• Keep copies of all loan correspondence. Create a "my student loan" file to hold statements, notices and other important documents.
  
  
• Ask questions!  This is your money we're talking about - don't be afraid to ask for help or for more information when you just don't get it.  Call your lender or contact the Oklahoma Guaranteed Student Loan Program's Early Assistance department at 1-800-358-5460 or wecanhelp@ogslp.org.

Visit the Oklahoma Guaranteed Student Loan Program Web site, www.ogslp.org, for comprehensive information about student loans, including:

• your rights and responsibilities as a borrower;
  
• a glossary of financial aid terms;
  
• detailed explanations of repayment options;
  
• default prevention techniques; and
  
• tips for bouncing back from default.