Financial Planning & Wellness

"Income" can be defined many ways while in law school. You can have many from scholarships, financial aid student loans, part-time or full-time jobs, assistance from family, etc. If you receive your income at one time in a lump sum, be sure to calculate how much you can spend per month so you have enough money that lasts until you receive more.

What do you expect to spend money on each month? Though you may not be used to tracking your expenses, it is important to have a detailed idea of where your money goes. If it helps, think about your expenses in categories:

Housing Expenses

Housing expenses are all of the expenses related to living in your house, apartment, or condo. These may include your rent, utilities, fees your apartment charges, and your internet or cable bill.

Housing can be expensive in Miami, so be sure to find a place to live that fits your budget for the full calendar year (including the months of May-August in which you may not be enrolled in classes). Before selecting a place to live, think about the financial implications of choosing where you live and whether you should live on your own or have one or more roommates. It may make more sense to find more affordable housing with a roommate while in law school so you can get that dream apartment or house after you graduate.

Transportation Expenses

This may include your monthly payments for car insurance, car retail or lease agreement, gas, highway tolls.

Food Expenses

Think about the money you spend on food. This includes groceries, restaurants, fast food, or food trucks. This will likely be the category you need to adjust the most as you continue budgeting. Be willing to change your expectations and spending habits as you get a better grasp on the amount you want to and actually spend.

Bills

This may include phone bills, monthly subscriptions to streaming websites, gym memberships or any other monthly bills you pay for. Be sure to note the due date for each account.

Debt

Any payments you make for credits cards or loans. Be sure to note the due date for each account.

Savings

Though it may be hard to think about, saving is an integral piece of money management. If you are able, try to put money aside in your monthly budget for that rainy day everyone always talks about. If this is something you cannot do while in law school, saving will be very important once you are employed.

Miscellaneous

This category is for anything you expect to spend money on that does not fit one of the categories above. It may include money for you to spend on clothing, your social life, travel, or many other things. When outlining your expectations for this category, be sure to be realistic so you can live within the means of your income.

No one ever gets their monthly budget correct on the first try. You may want to try tracking your expenses for a week and then moving on to a month so you can create an accurate budget. If you believe you are spending too much or too little in one category, always be willing to adjust. The most important piece of this whole process is having a budget that works for you and your situation. It may take some time to get there, but keep working at this process.

Consumer debt (i.e. credit cards or personal loans) may be one of the biggest pitfalls young adults fall into as they begin their financial journey. Sometimes a personal loan is essential, such as in the final few months of studying for the bar exam, but this should be viewed as a last resort and used only in critical situations.

Remember:

• Do not factor in expenses in your budget that you would have to pay for with consumer debt. If you cannot afford it with your income, try to remove it from your budget.
• Most credit card interest rate offers will be much higher than the interest rate offers your receive for your student loans. This means you will pay back more money in interest based on the amount you borrowed from credit card companies for a longer period of time.
• Try to pay off your consumer debt as soon as possible by paying higher than the monthly minimum. This will help lessen the amount of money you pay the company in interest.

• Monthly Budget Sheet
• Barbri 1L Budget Worksheet
• Budgeting apps and websites
  The University of Miami School of Law does not officially endorse any of these apps and websites and only provides them as opportunities for students to choose from. It may be beneficial for you to search separately for a budgeting platform that best fits your needs.
  • Many of the major banks include features that allow you to track your expenses
  • Mint
  • PocketGuard
  • Goodbudget
  • Quicken
  • NerdWallet Free Budget Worksheet
  • Everydollar Budget