Although it may sound a little odd, one of my favorite hobbies is budgeting. As a person who loves to collect many different types of items, and who carries an insatiable love of traveling, I’ve become rather skilled in how to make my money bend and stretch. There’s a certain satisfaction that comes from filling notepads, building numerous Excel Sheets, and typing up budget forecasting documents that just scratches a part of my brain.
In looking back, that love of budgeting was actually born out of my time being an RA. At my undergraduate institution, our RA package included free housing and a meal plan, but we did not get any sort of spending stipend. As such, I had to become skillful in maximizing the money I did have to make sure I was still able to buy movie tickets, pizza, fishbowls (the signature cocktail at mine and my friends’ local haunt), and whatever else an early 20-something would want. Along the way, the act of saving and budgeting became quite fun.
That mentality carried on into graduate school and then into my time being a Resident Director. Like many other RDs, I was fortunate to be in a position where I didn’t have to pay for rent or utilities. At first, I was a little frivolous in my spending habits (we all remember what it’s like to receive a full-time paycheck for the first time), but I soon started to become diligent and intentional in how I was taking advantage of this extra money in my pocket. I have learned a lot of lessons along the way, and have engaged in a lot of conversations around personal budgeting with a live-in role. While I may not be in a live-in role anymore, I live with my partner who has a live-in position, so I am still engaging in the same budgeting mentality. There is a lot I wish I would have done earlier, and I think we as professionals don’t always talk about fiscal management as much as we could. To that end, I want to provide some generalized advice around personal budgeting in a live-in position.
Create a Budget
- My first piece of advice isn’t necessarily just for live-in professionals, but for anyone – create a budget! If you haven’t done so already, take the time to find out what your required expenses are (things you need to pay for every month, such as a phone bill, loan payments, etc.). Then, create a budget for the fun stuff (such as money for going out, travel, buying stuff for your hobbies, etc.). Finally, create a savings plan (such as putting money in a 401k, building an emergency fund, etc.). Play around with your budget a bit, and don’t be afraid to retool and adapt as needed. You need to find what works best for you! A good starting off point could be the 50/30/20 rule. Under this rule, you take your paycheck and dedicate 50% of it to your necessities, 30% to your wants, and 20% to your savings.
If You Can, “Pay Rent” to Something
While you may not have to pay rent for your living quarters, I would recommend “paying rent” to something, if you can. Every time I get my paycheck, I divvy out money for all of my bills, and that always includes “rent.” Now, what “rent” is changes from time to time. Sometimes it could be for extra payments on student loans, other times it could be to pad out an emergency fund (it’s always recommended to have the equivalent of 3 – 6 months of your paychecks saved in an emergency fund), and now it serves as savings for a house downpayment. This is a non-negotiable expense every month, just as an actual rent payment would be. It has helped me get into the mentality of paying for housing, whenever that day will come.
Run Scenarios of Paying Rent
You never quite know where your journey is going to take you. Depending on your next move outside of the RD position, you’ll most likely be paying for your housing. Something I would recommend is looking at apartments near you, or in the area you think you would want to end up at. Take a look at rent prices, and see how much of your paycheck that would encompass. See where you might need to adjust your expenses to factor in rent, and see what price range would be possible with your paycheck. You can also do the same with a mortgage if owning a house will be your next jump! Now, I do recognize this is hard to fully gauge, and there are so many different unknown factors at play (you might not know what salary you’ll have, if rent prices will change, etc.), but this is still a really useful practice to play around with to get even the slightest idea of what’s ahead.
See What Institutional Budgeting Resources Are Available
My current institution offers a few invaluable resources when it comes to budgeting and financial management. We have a dedicated Financial Wellness office that is student-facing, but their staff has been happy to work with our professional staff. We’ve had a few professional development sessions for our staff where they have come in to speak to general budgeting advice, and breaking down the benefits the institution offers. The company that runs our retirement also offers individualized financial advising meetings to staff. I would highly recommend looking into what your institution offers, and even see if you can plan a professional development opportunity for the rest of your staff and team.
Talk About Finances With Others (To Your Comfortability)
It has been incredibly insightful and rewarding for me to talk with others about finances. I have talked with family members, friends, and other professionals about how they navigate budgeting, and have learned a lot from their approaches that I have adapted into my own budgeting. Of course, this is truly to your comfortability around how you want to talk about this (and with who), but it is certainly something I would recommend, if you have folks in your realm that you can talk to!
I know this goes without saying, but it is important to still state it – budgeting, finances, and everything in that realm is so incredibly personal and individualized to each person. It can also spark a lot of different emotions and feelings. You really need to do what best suits you! I do hope the above points are able to spark some thoughts and maybe provide something new you can try.
