The initial work
Start by deciding on a duration for your budget. You will have to choose whether it should be created on a monthly basis, semester wise or annually. Knowing this will help you calculate the overall amount you expect to incur in expenses. At this moment, you may be better off taking help from your parents, who will be paying part of your fee or sharing most of your expenses. Decide the exact figure you will need and discuss various financial permutations in order to better distribute your money.
List your expenses
Start by listing all your expenses. These will firstly include your direct expenses such as school or college fees (depending on the duration – semester, monthly, annually), housing costs (dorm), and other fixed bills such as phone, cable etc.
Having done that, you now list your variable expenses such as books, food supplies, entertainment, groceries etc. Noting down everything at once will not be easy as adjustments will be made in the initial couple of weeks.
Now list the income part
Having calculated your expenses, now incorporate any income that you will be generating. This will again depend on your own preference and will include broader categories such as financial aid, scholarships or any money you earn by working on a part time basis.
This is usually ignored by most but students must plan for certain emergencies. This can be only be done if they have emergency savings up their sleeves. Although saving early on will be difficult, but as you get accustomed to the whole budget process, you will find various expenses you can cut down on.
Review your budget
At the end of the first few weeks or month, check to see if you income is matching your expenses. In case you run into financial difficulty, review your budget and curb overspending.