Creating a Monthly Budget

Budgets are not hard to manage and once you set them up you will be happy that you did. Here are simple steps to follow to get you started.

1. Know how much money you’re making in a month after taxes. For a budget plan to work, you need to know the amount of money, so consider every dollar and write it down.
2. Add up your expenses and writing them down.  Record everything from rent, groceries, transportation all the way down to buying an energy drink at the vending machine. Keep receipts so next time you have a better understanding of your expenses.
3. Set goals you’re going to achieve with this budget. Having a goal in mind gives your budget a purpose and you’re more likely to put the effort to achieving that goal because it would be measurable. Think short-term and long-term. Think about what you’re going to do with the money you need to save. Are you going to save up for a car or tuition for next semester? This gives you a reason to save more.
4. Categorize your budget. The purpose to categorize your budget is to help you set priorities your money from the most important expenses to the least. For example: Rent, Food, Transportation and bills would have a high priority to pay off first; than can you pay for Entertainment, Shopping and Miscellaneous activities. After all these expenses that you have built into your lifestyle, you can set aside your money into a savings account. You might have to sacrifice some expenses like shopping or miscellaneous activities to meet your monthly goal. 
5. Add the expenses for each category and have a total for each. For some expense you might need to make good estimates, base them of from your past experiences.
6. Add all the totals from each category. Now that you have a TOTAL of all your spending; compare it with your income.
7. How will you keep track of your budget? Use a basic template on paper or use computer software like Microsoft Money.
8. Input all your Income and Expenses. If your expenses are higher than your income, make adjustments and stop doing the least important activities from step 4.
9. Put the money you save into a savings account and go back to step 1 for the next month.

Osap Money RAP by CWonderz Flow Shadow

 http://www.youtube.com/watch?v=H_0D1I0T0Ps

This is a rap made for people who spend OSAP money on everything but their education. I have been running into people who do this exact thing all the time; always spending money on unnecessary things that don't benefit them in the long term. Have you bought something that just ended up collecting dust? Well if you have then you need to discover the difference between “needs” and “wants”. OSAP is to help you through college not your lifestyle, so why not develop that mentality. 

Why do people lack so much money management skills? Most of them wouldn't need OSAP in the first place if they had these skills. It seems like they didn't pay attention in their high school math class. High school teaches these fundamental math skills to help students manage their money. 

I think people need to sit down and take some time off to think about their bad spending habits. If only there was such a thing called Google, that would help these bad spenders find a template for a monthly budgetplan—life would be so simple. 

Do your reasearch and find ways to save money. You don't need to be cheap just be wise about it. You would love it once you start saving. 

What to do if you're in debt

There are many ways to get out of debt and some are simplier than others. If you're in debt reduce your spending to a minimum. Work on a monthly budget that will help you to keep track of the money flowing in and out of your accounts. Ask family members to assist you in getting out of debt, and get rid of the 10 credit cards you have.

Stop spending: 

There are so many people who are in debt that do not see their bad spending habits. The trick is to reduce spending significantly on impulse purchases and wants. Focus on the things you need and you'll use. There are many situations where we buy something that just sits there collecting dust. Learn to live in a strict budget and get into the mentality of saving for the long run. Don't take a mental shortcut to make yourself feel better by saying "hey, I'm already in debt so what's a few more dollars?" Don't do this to yourself and many people who take this route end up in stressful situations.

Money flowing in and out

Live on a budget:

Organize the amount of income and expenses into a chart to make everything clear. You'd be surprised by how weak our memory is when it comes to remembering our expenses. Almost always we forget about the small expenses that add up on a monthly base. It is a good idea to have everything written down to keep track. These small accumulating expenses are the cause of most people being in debt. Categorize your spending for food, transportation, rent, entertainment and others. Make a list of the things you need and the things you want. There is a different between needs and wants. Needs are thing that you "must have" in order to live; like food and shelter. Wants are things you  "like to have" but can live without like gym memberships and Wonderland passes. When spending money on a budget, buy the things you NEED first, and if your budget allows then buy things you want.

Ask family members for financial support:

If you never share your situation with your loved ones, how would they know? We live in a society where we have to be independent, it makes us feel better. Being independent doesn't mean we can't ask for help, it doesn't lower our status, and many times family members would love to help out. Getting help from your family has many benefits, there are no hidden costs, interest rates, or penalties for failing to pay on time (Please pay on time and don't abuse). 

Cut up credit cards:

Stop increasing your debt by getting rid of the things that cause debt. You should have only one credit card and it should be only used for emergencies that you have the ability to pay back. Credit card companies make more money when you're in debt. They want you to be paying their minimum payment for the rest of your life. Your debt is their assets. Pay their debt ASAP and cut up their card.


Follow these simple steps and you should be debt free in no time. 

Highly purchased items with OSAP funds

Brand name clothing is highly marked up. The brand names your spending on costs the companies nickles and dimes to produce. So why pay them over $100 for something that costs them less than $10 to make? Have your own image, brand and just be yourself. You don't need to prove anything to anyone. It's not high school and no one cares about what you have on. Companies use marketing to position an image in your head that is false. Don't fall for marketing and don't copy people on the type of stuff they have. Chances are their in the same boat as you are or they have parents who provide for them. You don't need to wear expensive Jordan shoes, expensive watches with fake diamonds, fashionable clothing if you're on OSAP and use public transportation.

Laptops can be a good investment if your course requires it, and overall it can be used in the form of cheap entertainment. What is not a good investment is an over priced MacBook Pro. You're not paying for an awesome laptop that will never brake or get outdated in 6 months. You are paying for a brand name that Steve Jobs created and chances are you're not an "creative" student. If you were creative, you wouldn't spend so much money for something you can get for half the price. Still don't believe me? read this. Get a cheap alternative laptop with the specs you need to get your work done. You don't need a high powered Alienware gaming laptop that costs $2000 if your going to be watching YouTube videos and using Microsoft Word.

Cell phones & Mobile plans are another issue where people spend without doing research. Just take the time to Google and look for what is right for you. You shouldn't spend over $600 on a cell phone or sign up for contracts that cost $80 plus a month. Just do your research for the right carriers and plans they offer. Don't let the marketers do the thinking for you and impress you with a 8 megapixel camera. You should need a cell phone that allows you to make calls, text and email. You don't need a 1080p video recording function.

Other gadgets like the PlayStation 3, Xbox 360 are nice to have but just don't buy them with OSAP money. plain and simple.

Tips to reduce education costs

The cost of college is unimaginable, and if you're not keeping up with your wallet, you'll be in for a surprise. Let's face it, the cost of education and the lack of math skills some students have can lead them into debt. Students need a plan similar to a business plan, where you're rewriting and consistently editing to make it cost effective. Students need to find ways to reduce the cost of living, food, transportation, books, phone bills and others expenses. I'm going to provide you simple information on saving money so YOU don't get into debt. Remember I care about YOU.

thanunkorn / FreeDigitalPhotos.net

First, apply for bursaries or scholarships that can be some assistance to your financial needs. Contact your financial aid office at your college, to apply or to find out if you qualify. Hey it's worth a shot, you'll never know until you ask. Always keep looking for free money or discounts and fill out those surveys. Chances are the majority of people think just like you and don't fill them out. You have a better chance to win $500 to $1000 from just doing surveys than winning a lottery. Keep applying and try to improve your grades, it improves your chances of getting a scholarship or bursary. You can always find out more information from your college website.

Second, reduce the cost of living. Living on campus is amazing and near but its comes with a cost. Try to rent out an apartment with a few roommates and split the costs. If you do decide to live off campus, do research of the area and find competitive prices. Ask for what utilities you have access to like refrigerators, washers, internet, or even a microwave. Doing research can save money and will benefit you long term. Save water and electricity whenever you get the chance. If the costs are still too high, try to live with family friends who live near. If that is not an option, live with your parents and take the bus to save gas and parking expences.

Third, make sure you have a student checking account. Banks like CIBC, RBC and many more offer free checking and saving accounts to students. It's simple, go to your bank and tell them you're a student. That is all you need to say, they will understand and will offer their help. At college you will be using your debit card often and if you don't have a free checking account, transaction costs will come bite you. Have online banking so you can keep track of the money coming in and going out. Having an eye on your money will prevent you from over-drafting fees. Hey it's not hard. 

Fourth, stop buying pizza everyday! not only is it unhealthy but overpriced. Bring small lunches or snacks from home and try to stay out of the pub as much as possible. And why on earth are you paying more for bottled water than you pay for gas? A $1.50 for half a liter of water. You should be ashamed of yourself; your car drinks less than that. Here's a secret, buy snacks from the bookstore. The bookstores main objective is to sell books so they have to reduce their prices on other things to keep competitive. Give it a try and thank me later.

Fifth, take public transportation to save money on gas, parking passes and the depreciation on your car. Try to carpool as much as you can if you have other students living in your area. Did you know if you take public transportation you can claim tax benefits? Yes buy a weekly or monthly bus pass and claim when filling taxes. Not only you will be saving on gas and parking passes but on public transportation. This is one of the luxuries of living in Canada. Give it a shot and save, save and save.

Sixth, never buy brand new books from the bookstore; you're a complete fool if you do. They are way to expensive if you're on a budget. Always network because you will find people who do not sell back directly to the bookstore. They might sell you the books at a higher price than what the bookstore offered them; but remember, the bookstore will resell them for a higher price and add taxes. Buying directly from a past student will benefit you and the person selling. Most likely you have pay less than the used price at the bookstore and save taxes. If you can, try to buy in bulk and not single books; you will have a better chance to negotiation the prices. 

Seventh, don't pay so much on your cell phone plans. I understand that cell phones are a huge part of your life but they can be unnecessary and distractions. Research to find the right carriers and plans that are fit for you. Let me give you a hint, if your paying more than $50 and don't own a business your paying too much! Don't sign 3 year term contracts just because they're offering you the latest phone for a reduced price. Guess what, technology changes every 6 months and that latest phone will be outdated way before you finish paying for it. Don't fall for these dirty tricks. A latest phone will cost you about $200 plus a 3 year contract at $80+/month.... do the math; you're paying over $1200+ for a outdated phone. Join a family plan and do your research. 

Eighth, look for a part-time job to assist you in reducing some expenses. All you need is to bare the cost of transportation, food and a cell phone bills. Just two days a week can make a big difference. 

Ninth, don't take your girlfriend/ boyfriend for expenses dinners just to impress them. Have a romantic dinner that is home cooked... everyone loves a good cook. Let me Google it for you. If you're just doing it to impress someone, chances are they might leave you after you go broke and start asking them for money. And the most embarrassing part is when your debit card doesn't work when paying restaurant bill. Had that happened to me once, not that I was broke but had an expired VISA card. Always carried cash since :)

Lastly, get organized and keep track of your spending habits. 

New 30 percent off Ontario Tuition

In the time of recovery from a recession, ever so high tuition, inflation and a weak job market, comes Ontario to help its students. Students can be eligible for a 30% cut this year. Students can save $365 (A dollar a day) if their enrolled in a college diploma or certificate program. University and college degree students can save $800 this term.

So how do you know if you're eligible for this 30% reduction in tuition.

1. First you need to be a "full-time student at a public college or university in Ontario".
2. Second it needs to be "less than four years since you left high school".
3. Third "you're in a program that you can apply to directly from high school".
4. Fourth "your parents' gross income is $160,000 or less".

The students already receiving OSAP will be automatically considered. But what about the students who have been out of high school for longer than 4 years? Why are they being discriminated against? Personally, I think there should be only one requirement of being full-time.  Everyone should get an equal chance and reduction of tuition, even if your parents are making over $160,000 per year. 

If you're eligible and not already receiving OSAP then apply to get your 30% off tuition. Over 90,000 students in Ontario are still yet to apply out of 310,000 for the lack of awareness. 

This extra saving can help you pay for some expenses like rent, books, supplies and much more. This is not money that you will have to give back like OSAP. It is the reduction of the money you paid... so get it back and enjoy the help of the Ontario Government.

Applying for OSAP

Before applying for OSAP think about alternative sources of money from parents or a part-time job. Go as far as to think why you need OSAP in the first place. If you're not employed part-time for a minimum two days a week, your first instinct should be to find a job. You must have time and money management skills before taking on a loan. This part time job will help you pay for some expenses not related to education such as cell phone bills, transportation, and food. OSAP funds should not be used for paying bills that are unrelated to  your education. Once you have an alternative income source, lets begin applying for OSAP.

First you need to know if you're a full-time or part-time student. Full-time students take 60% course load or more and part-time students have a course load between 20% to 59%. The amount of money you receive from OSAP will vary depending on your program and college. The reason for this is because two institutions offering the same program might vary in tuition costs and curriculum. Before OSAP writes you a cheque, they need to verify the cost and length of your education. Use the OSAP Aid Estimator to find out the amount of financial aid you can expect once you have been approved. You can apply for OSAP by a paper application if needed from your institutions financial aid office, or fill out the online application.

Stuart Miles / FreeDigitalPhotos.net

Once you have filled out the online application, take the time to review your application summery. Make sure all the information you have provided is correct because once you submit. You will not be able to edit that information online, if you realize you have made a mistake after submitting your application; it will require documentation to get those mistake change. Therefore, take your time and verify your application. There will be a list of document you must provide, so take all deadlines and important notices into consideration.

After you submit, you must make sure you understand the terms and condition of taking the OSAP loan. Print out all declaration and signature pages and sign all required areas. Mail the signature pages or submit them at your financial aid office.

The last step is to wait for your estimate and use it to make plans and adjust your academic year.  Good luck.