BUDGETING 101

OFF CAMPUS

Explanation of Case Study

The following tabs in this spreadsheet provide an example (i.e., case study) of a zero-based monthly
budget for a student living on campus. Your income and expenses may look very different than this
student's, but the example will demonstrate the mechanism for developing a zero-based budget that you
can apply to your own situation.

Budget Column - Before the month begins write down your plan for how to spend each dollar you have
coming in that month.
Actual Column - As you spend money during the month record the expenditure in this column. You will
keep adding to it each time you spend money from that budget category.
Difference Column - This column will subtract your actual expenses from the budgeted amount and tell
you how much money you have left in that category to spend, or how much you have overspent. If you
have overspent you need to find someway to increase your income to offset the expense, or reduce
another budgeted expense category down by the amount you overspent. Remember, keep your income
minus your expenses equal to zero the entire month.

Budgets and Behaviors

Creating a budget is often times much easier than changing your behaviors to live within it. However, if
you do not exhibit the behaviors necessary to control your spending, then a budget will not provide much
of a benefit. A budget is a guide for how to spend your money and you are in control of this guide by
telling your money where you want it to go. Additionally, a budget should be flexible enough that you
can modify it during the month based on your changing needs.

Budget Tools
There many tools you can use to budget, Excel is just one of them. Products like Microsoft Money and
Quicken can be useful, or you can develop your own mechanism. The point in zero-based budgeting is
to make sure your income minus your expenses always equals zero each month. If this happens you
will not overspend.

Why Budget?
Developing a budget can help you avoid these common issues faced by most individuals:
*According to the Wall Street Journal nearly 70% of all consumers live paycheck to paycheck
*Money is our No. 1 stress factor, according to the American Psychological Association
*Consolidated Credit Counseling Services found that 71% of Americans say debts are making their
home lives unhappy
*According to Fortune magazine, the research group Public Agenda estimates that almost 75% of
Americans fear they aren’t saving enough for retirement
*Fidelity Investments says nearly 60% of Americans have difficult time starting retirement planning
*According to a survey conducted by Worth magazine, the number one thing American couples fight
about is money

We hope you find this case study helpful. Please do not hesitate to contact our office if you would like
assistance in developing a budget. We work individually with students on this, as well as conduct
hands-on seminars for groups across campus.

Contact Information:
Office of Financial Aid & Scholarships
Student Success Center
MSC 3519
Phone: 540-568-7820
E-mail: fin_aid@jmu.edu
 Zero-Based Budget
Off-Campus Case Study

Parsimonious Spendthrift is a third year student at We're #1 University. She wants to make sure she
does not incur any unnecessary debt, so she will develop a zero-based budget to ensure she does
not spend more than her “income.” Parsimonious will have the following status at her university:
*In-state
*Full-time
*Living off campus in an apartment
*We're #1 University costs = $6,964 for tuition/fees ($3,482 per semester)

Income:
*Financial Aid:
*$6,000 in grants and scholarships ($3,000 per semester)
*$5,500 of eligibility in federal student loans ($2,750 per semester, but she would like to
avoid taking out loans if possible)
*$11,500 in total financial aid eligibility ($5,750 per semester)
*Parents: $6,500 per year towards her direct school costs ($3,250 per semester)
*Part-time on campus employment: $6.55/hour working 10 hours per week, so she will earn $262 per
month (based on a 4 week month)
*Savings: $4,000 ($2,000 per semester from summer and high school work)

She is not excepting any reliable streams of income from her parents or family, so any money she
receives from them during the year would be bonus.

Fixed Expenses:
Fixed expenses are defined as such because she is under “contract” to pay these amounts. The fixed
monthly expenses she is responsible for are:
*Rent = $385.00
*Utilities = $80.00 (electricity and water)
*Cable/Internet = $20.00
*Renter's Insurance = $0 (covered under parents' policy…she checked to make sure)
*Cell Phone = $50.00

Parsimonious is also covered under her parents’ health insurance.

Variable Expenses:
These expenses are defined as variable because there is no “contractual” requirement to pay these
on a regular basis. These expenses vary by month. Since they vary by month we will assign a dollar
amount to each applicable category on a month by month basis.
*Books
*Apartment decorations
*Dining out
*Personal care (e.g. soap, shampoo, etc.)
*Clothing purchases
*Tithing/Giving
*Entertainment (e.g., concerts, movies, etc.)
*Dating
*Other to be determined monthly
Explain how some expenses can vary based on the time of the year:

List some other variable expenses that are not listed above:
ZERO BASED BUDGET WORKSHEET MONTH: August (half the month)
Monthly Income Budget Actual Difference*
Wages $0.00 $0.00 (not working on campus yet)
Financial Aid $3,000.00 $3,000.00 (fall aid)
Savings $2,000.00 $2,000.00 (1/2 of savings)
Parents/Family $3,250.00 $3,250.00 (1/2 of parents' payments)
Other Income $0.00 $0.00
Total Income $8,250.00 $0.00 $0.00

Monthly Expenses Budget Actual Difference

Automobile - Car Maintenance $0.00
Automobile - Car Payment $0.00
Automobile - Gas $20.00 $20.00 (include bus & taxi fares)
Automobile - Insurance $0.00 (parents are paying)
Blow/extra $100.00 $100.00
Carry Forward (to next month) $3,123.00 $3,123.00
Charitable Donations $0.00
Clothing - Laundry, Dry Cleaning $0.00
Clothing - Purchases $0.00
Debt - Credit Card Payment(s) $0.00
Education - Tuition/Fees $3,482.00 $3,482.00 (fall charge)
Education - Books $500.00 $500.00 (fall start up expense)
Education - Internet Fee $0.00
Education - Room/Board $0.00
Education - Other $0.00
Emergency Fund $300.00 $300.00 (keep this for emergencies)
Food - Dining Out $20.00 $20.00 (coffee, snacks, lunches, etc.)
Food - Groceries $70.00 $70.00
Gifts $0.00
Healthcare - Dental $0.00
Healthcare - Physician $0.00
Healthcare - Prescriptions $0.00
Housing - Cell Phone Service $50.00 $50.00
Housing - Cable/Internet/Phone $20.00 $20.00
Housing - Rent $385.00 $385.00
Housing - Décor $40.00 $40.00
Housing - Utlities $80.00 $80.00
Leisure - Dating $0.00
Leisure - Books & Periodicals $0.00
Leisure - Movies $0.00
Leisure - Other $30.00 $30.00 (concerts, etc.)
Personal Care $30.00 $30.00 (grooming products, etc.)
Savings - Short Term $0.00
Travel $0.00
per Month per Month per Month
Total Expenses $8,250.00 $0.00 $8,250.00
*Difference (Budget - Expenses) $0.00 $0.00 -$8,250.00
*Difference = A negative number indicates you exceeded the budgeted amount. A positive number indicates you
have yet to reach the budgeted amount.

If you don't track your expenses in each category during the month to ensure you don't overspend or need to adjust other
items in your budget, then having a budget is almost pointless.

Blow/Extra - "Things" happen during the month that you cannot pre-plan for, so this is designed to cover those expenses.
This is a very important category. Without it, your budget will not work.
Emergency Fund - Hospital visits, car breaks down, medications, etc. NOT "things are on sale" or I "need" some new
clothes. Generally will not need or use it, but it's there just in case to avoid debt if something comes up.
ZERO BASED BUDGET WORKSHEET MONTH: September
Monthly Income Budget Actual Difference*
Wages $262.00 $262.00
Financial Aid $0.00 $0.00
Savings $0.00 $0.00
Parents/Family $0.00 $0.00
Other Income $3,123.00 $3,123.00 (carry forward from August)
Total Income $3,385.00 $0.00 $3,385.00

Monthly Expenses Budget Actual Difference

Automobile - Car Maintenance $0.00
Automobile - Car Payment $0.00
Automobile - Gas $30.00 $30.00 (include bus & taxi fares)
Automobile - Insurance $0.00 (parents are paying)
Blow/extra $100.00 $100.00
Carry Forward (to next month) $2,475.00 $2,475.00
Charitable Donations $0.00
Clothing - Laundry, Dry Cleaning $0.00
Clothing - Purchases $25.00 $25.00
Debt - Credit Card Payment(s) $0.00
Education - Tuition/Fees $0.00
Education - Books $0.00
Education - Internet Fee $0.00
Education - Room/Board $0.00
Education - Other $0.00
Emergency Fund $0.00 (already funded)
Food - Dining Out $10.00 $10.00 (coffee, snacks, lunches, etc.)
Food - Groceries $140.00 $140.00
Gifts $0.00
Healthcare - Dental $0.00
Healthcare - Physician $0.00
Healthcare - Prescriptions $0.00
Housing - Cell Phone Service $50.00 $50.00
Housing - Cable/Internet/Phone $20.00 $20.00
Housing - Rent $385.00 $385.00
Housing - Décor $20.00 $20.00
Housing - Utlities $80.00 $80.00
Leisure - Dating $0.00
Leisure - Books & Periodicals $0.00
Leisure - Movies $0.00
Leisure - Other $20.00 $20.00 (concerts, etc.)
Personal Care $30.00 $30.00 (grooming products, etc.)
Savings - Short Term $0.00
Travel $0.00
per Month per Month per Month
Total Expenses $3,385.00 $0.00 $3,385.00
*Difference (Budget - Expenses) $0.00 $0.00 $0.00
*Difference = A negative number indicates you exceeded the budgeted amount. A positive number indicates you
have yet to reach the budgeted amount.

If you don't track your expenses in each category during the month to ensure you don't overspend or need to adjust other
items in your budget, then having a budget is almost pointless.

Blow/Extra - "Things" happen during the month that you cannot pre-plan for, so this is designed to cover those expenses.
This is a very important category. Without it, your budget will not work.
Emergency Fund - Hospital visits, car breaks down, medications, etc. NOT "things are on sale" or I "need" some new
clothes. Generally will not need or use it, but it's there just in case to avoid debt if something comes up.
ZERO BASED BUDGET WORKSHEET MONTH: October
Monthly Income Budget Actual Difference*
Wages $262.00 $262.00
Financial Aid $0.00 $0.00
Savings $0.00 $0.00
Parents/Family $0.00 $0.00
Other Income $2,475.00 $2,475.00 (carry forward from September)
Total Income $2,737.00 $0.00 $2,737.00

Monthly Expenses Budget Actual Difference

Automobile - Car Maintenance $0.00
Automobile - Car Payment $0.00
Automobile - Gas $30.00 $30.00 (include bus & taxi fares)
Automobile - Insurance $0.00 (parents are paying)
Blow/extra $100.00 $100.00
Carry Forward (to next month) $1,872.00 $1,872.00
Charitable Donations $0.00
Clothing - Laundry, Dry Cleaning $0.00
Clothing - Purchases $0.00
Debt - Credit Card Payment(s) $0.00
Education - Tuition/Fees $0.00
Education - Books $0.00
Education - Internet Fee $0.00
Education - Room/Board $0.00
Education - Other $0.00
Emergency Fund $0.00 (already funded)
Food - Dining Out $10.00 $10.00 (coffee, snacks, lunches, etc.)
Food - Groceries $140.00 $140.00
Gifts $0.00
Healthcare - Dental $0.00
Healthcare - Physician $0.00
Healthcare - Prescriptions $0.00
Housing - Cell Phone Service $50.00 $50.00
Housing - Cable/Internet/Phone $20.00 $20.00
Housing - Rent $385.00 $385.00
Housing - Décor $0.00
Housing - Utlities $80.00 $80.00
Leisure - Dating $0.00
Leisure - Books & Periodicals $0.00
Leisure - Movies $0.00
Leisure - Other $20.00 $20.00 (concerts, etc.)
Personal Care $30.00 $30.00 (grooming products, etc.)
Savings - Short Term $0.00
Travel $0.00
per Month per Month per Month
Total Expenses $2,737.00 $0.00 $2,737.00
*Difference (Budget - Expenses) $0.00 $0.00 $0.00
*Difference = A negative number indicates you exceeded the budgeted amount. A positive number indicates you
have yet to reach the budgeted amount.

If you don't track your expenses in each category during the month to ensure you don't overspend or need to adjust other
items in your budget, then having a budget is almost pointless.

Blow/Extra - "Things" happen during the month that you cannot pre-plan for, so this is designed to cover those expenses.
This is a very important category. Without it, your budget will not work.
Emergency Fund - Hospital visits, car breaks down, medications, etc. NOT "things are on sale" or I "need" some new
clothes. Generally will not need or use it, but it's there just in case to avoid debt if something comes up.
ZERO BASED BUDGET WORKSHEET MONTH: November
Monthly Income Budget Actual Difference*
Wages $262.00 $262.00 (could vary based on holiday)
Financial Aid $0.00 $0.00
Savings $0.00 $0.00
Parents/Family $0.00 $0.00
Other Income $1,872.00 $1,872.00 (carry forward from October)
Total Income $2,134.00 $0.00 $2,134.00

Monthly Expenses Budget Actual Difference

Automobile - Car Maintenance $0.00
Automobile - Car Payment $0.00
Automobile - Gas $30.00 $30.00 (include bus & taxi fares)
Automobile - Insurance $0.00 (parents are paying)
Blow/extra $100.00 $100.00
Carry Forward (to next month) $1,179.00 $1,179.00
Charitable Donations $0.00
Clothing - Laundry, Dry Cleaning $0.00
Clothing - Purchases $0.00
Debt - Credit Card Payment(s) $0.00
Education - Tuition/Fees $0.00
Education - Books $0.00
Education - Internet Fee $0.00
Education - Room/Board $0.00
Education - Other $0.00
Emergency Fund $0.00 (already funded)
Food - Dining Out $10.00 $10.00 (coffee, snacks, lunches, etc.)
Food - Groceries $140.00 $140.00
Gifts $50.00 $50.00 (start Christmas shopping)
Healthcare - Dental $0.00
Healthcare - Physician $0.00
Healthcare - Prescriptions $0.00
Housing - Cell Phone Service $50.00 $50.00
Housing - Cable/Internet/Phone $20.00 $20.00
Housing - Rent $385.00 $385.00
Housing - Décor $0.00
Housing - Utlities $80.00 $80.00
Leisure - Dating $0.00
Leisure - Books & Periodicals $0.00
Leisure - Movies $0.00
Leisure - Other $20.00 $20.00 (concerts, etc.)
Personal Care $30.00 $30.00 (grooming products, etc.)
Savings - Short Term $0.00
Travel $40.00 $40.00 (Thanksgiving)
per Month per Month per Month
Total Expenses $2,134.00 $0.00 $2,134.00
*Difference (Budget - Expenses) $0.00 $0.00 $0.00
*Difference = A negative number indicates you exceeded the budgeted amount. A positive number indicates you
have yet to reach the budgeted amount.

If you don't track your expenses in each category during the month to ensure you don't overspend or need to adjust other
items in your budget, then having a budget is almost pointless.

Blow/Extra - "Things" happen during the month that you cannot pre-plan for, so this is designed to cover those expenses.
This is a very important category. Without it, your budget will not work.
Emergency Fund - Hospital visits, car breaks down, medications, etc. NOT "things are on sale" or I "need" some new
clothes. Generally will not need or use it, but it's there just in case to avoid debt if something comes up.
ZERO BASED BUDGET WORKSHEET MONTH: December
Monthly Income Budget Actual Difference*
Wages $262.00 $262.00 (could vary based on holiday)
Financial Aid $0.00 $0.00
Savings $0.00 $0.00
Parents/Family $0.00 $0.00
Other Income $1,179.00 $1,179.00 (carry forward from November)
Total Income $1,441.00 $0.00 $1,441.00

Monthly Expenses Budget Actual Difference

Automobile - Car Maintenance $0.00
Automobile - Car Payment $0.00
Automobile - Gas $30.00 $30.00 (include bus & taxi fares)
Automobile - Insurance $0.00 (parents are paying)
Blow/extra $100.00 $100.00
Carry Forward (to next month) $476.00 $476.00
Charitable Donations $0.00
Clothing - Laundry, Dry Cleaning $0.00
Clothing - Purchases $0.00
Debt - Credit Card Payment(s) $0.00
Education - Tuition/Fees $0.00
Education - Books $0.00
Education - Internet Fee $0.00
Education - Room/Board $0.00
Education - Other $0.00
Emergency Fund $0.00 (already funded)
Food - Dining Out $10.00 $10.00 (coffee, snacks, lunches, etc.)
Food - Groceries $140.00 $140.00
Gifts $50.00 $50.00 (Christmas)
Healthcare - Dental $0.00
Healthcare - Physician $0.00
Healthcare - Prescriptions $0.00
Housing - Cell Phone Service $50.00 $50.00
Housing - Cable/Internet/Phone $20.00 $20.00
Housing - Rent $385.00 $385.00
Housing - Décor $0.00
Housing - Utlities $80.00 $80.00
Leisure - Dating $0.00
Leisure - Books & Periodicals $0.00
Leisure - Movies $0.00
Leisure - Other $20.00 $20.00 (concerts, etc.)
Personal Care $30.00 $30.00 (grooming products, etc.)
Savings - Short Term $0.00
Travel $50.00 $50.00 (Christmas)
per Month per Month per Month
Total Expenses $1,441.00 $0.00 $1,441.00
*Difference (Budget - Expenses) $0.00 $0.00 $0.00
*Difference = A negative number indicates you exceeded the budgeted amount. A positive number indicates you
have yet to reach the budgeted amount.

If you don't track your expenses in each category during the month to ensure you don't overspend or need to adjust other
items in your budget, then having a budget is almost pointless.

Blow/Extra - "Things" happen during the month that you cannot pre-plan for, so this is designed to cover those expenses.
This is a very important category. Without it, your budget will not work.

Emergency Fund - Hospital visits, car breaks down, medications, etc. NOT "things are on sale" or I "need" some new
clothes. Generally will not need or use it, but it's there just in case to avoid debt if something comes up.

She has gone through the entire fall semester with no loans and/or credit card debt, but she is $194 short in December.
She needs to trim some expenses or increase her income. This same type of budget structure works if you have a family
or are balancing finances in a business.
ZERO BASED BUDGET WORKSHEET MONTH:
Monthly Income Actual
Wages
Financial Aid
Savings
Parents/Family
Other Income
Total Income $0.00

Monthly Expenses Actual

Automobile - Car Maintenance
Automobile - Car Payment
Automobile - Gas (include bus & taxi fares)
Automobile - Insurance
Blow/extra
Carry Forward (to next month)
Charitable Donations
Clothing - Laundry, Dry Cleaning
Clothing - Purchases
Debt - Credit Card Payment(s)
Education - Tuition/Fees
Education - Books
Education - Internet Fee
Education - Room/Board
Education - Other
Emergency Fund
Food - Dining Out (coffee, snacks, lunches, etc.)
Food - Groceries
Gifts
Healthcare - Dental
Healthcare - Physician
Healthcare - Prescriptions
Housing - Cell Phone Service
Housing - Cable/Internet/Phone
Housing - Rent
Housing - Décor
Housing - Utlities
Leisure - Dating
Leisure - Books & Periodicals
Leisure - Movies
Leisure - Other (concerts, etc.)
Personal Care (grooming products, etc.)
Savings - Short Term
Travel
per Month
Total Expenses $0.00
*Difference (Budget - Expenses) $0.00
*Difference = A negative number indicates you exceeded the budgeted amount. A
positive number indicates you have yet to reach the budgeted amount.

Cash Flow Worksheets are often used to track expenses to get a baseline for budgeting if you need some history to help you
develop a budget plan for the future. It is not necessary to use this worksheet, but it can be helpful to see what your income
and expenses were for over a specified time period.
ZERO BASED BUDGET WORKSHEET - OFF CAMPUS MONTH:
Monthly Income Budget Actual Difference*
Wages $0.00
Financial Aid $0.00
Savings $0.00
Parents/Family $0.00
Other Income $0.00
Total Income $0.00 $0.00 $0.00

Monthly Expenses Budget Actual Difference

Automobile - Car Maintenance $0.00
Automobile - Car Payment $0.00
Automobile - Gas $0.00 (include bus & taxi fares)
Automobile - Insurance $0.00
Blow/extra $0.00
Carry Forward (to next month) $0.00
Charitable Donations $0.00
Clothing - Laundry, Dry Cleaning $0.00
Clothing - Purchases $0.00
Debt - Credit Card Payment(s) $0.00
Education - Tuition/Fees $0.00
Education - Books $0.00
Education - Internet Fee $0.00
Education - Room/Board $0.00
Education - Other $0.00
Emergency Fund $0.00
Food - Dining Out $0.00 (coffee, snacks, lunches, etc.)
Food - Groceries $0.00
Gifts $0.00
Healthcare - Dental $0.00
Healthcare - Physician $0.00
Healthcare - Prescriptions $0.00
Housing - Cell Phone Service $0.00
Housing - Cable/Internet/Phone $0.00
Housing - Rent $0.00
Housing - Décor $0.00
Housing - Utlities $0.00
Leisure - Dating $0.00
Leisure - Books & Periodicals $0.00
Leisure - Movies $0.00
Leisure - Other $0.00 (concerts, etc.)
Personal Care $0.00 (grooming products, etc.)
Savings - Short Term $0.00
Travel $0.00
per Month per Month per Month
Total Expenses $0.00 $0.00 $0.00
*Difference (Budget - Expenses) $0.00 $0.00 $0.00
*Difference = A negative number indicates you exceeded the budgeted amount. A positive number indicates you
have yet to reach the budgeted amount.

If you don't track your expenses in each category during the month to ensure you don't overspend or need to adjust other
items in your budget, then having a budget is almost pointless.

Blow/Extra - "Things" happen during the month that you cannot pre-plan for, so this is designed to cover those expenses.
This is a very important category. Without it, your budget will not work.
Emergency Fund - Hospital visits, car breaks down, medications, etc. NOT "things are on sale" or I "need" some new
clothes. Generally will not need or use it, but it's there just in case to avoid debt if something comes up.