The recent decision by Camosun College to bring forward the fee deadline for the fall term came as a rude shock for many students. It meant coming up with a significant sum of money several weeks earlier or being removed from registered courses. This may prove difficult for some students, as they may need a paycheque at the end of August to make up the required amount.
Thanks to the Camosun College Student Society, the college has compromised on its original plan. This sudden change emphasizes the importance of planning your finances and doing frequent checkups of your financial health. In this issue, I will be sharing some tips for doing quick checkups.
At the start of each calendar quarter, I like to do a forecast of my income and expenses for the upcoming months. I do this with a spreadsheet (you can also use a sheet of paper), and divide it into two sections—one for income and the other for expenses. On the income side, I include the salary from my part-time job and any other funds I expect to receive, such as an income-tax refund when forecasting for April. Regular spending and upcoming major expenses, such as tuition, go onto the expenses side. When forecasting, use past information, such as your average salary over the last three months, as a guide. It’s also a good idea to take a conservative approach. This means rounding down or underestimating income, and rounding up or overestimating expenses.
Comparing the totals on each side will give you a good idea of your financial health for that quarter. If you forecast more income than expenses, maybe you can relax and take on fewer shifts. If your expenses are forecast to be greater than income, such as when a tuition deadline approaches, check to ensure that you have sufficient savings to cover the shortfall. It’s also important to take a look at actual income and expenses at the end of each month to make sure that your forecast is not too far off. Personally, I update my forecasts at the end of each month using the actual numbers so I know if I need to make any changes to my plans for the upcoming months.
Although it’s impossible to foresee all unexpected expenses (such as having to pay tuition almost a month earlier than originally planned), having a good idea of where you stand financially will help you to come up with a plan easier. I know that it may be anxiety-inducing to do these checkups frequently, but it beats being blindsided by something unexpected and having no idea how much you actually need.