Roving spoon-slingers peered into bubbling hotpots as our dorm's "Ramen Noodle Night" gained momentum. Some of my friends left for the local dive, but I chose to stay and slosh steaming noodles into a mug. Twenty-five-cent carb packets may not have been as exciting as restaurant fare, but my roommate's jokes, classic Pink Floyd playing across the hall, and vicious ping-pong dorm tournaments made up for the lacking cuisine.

My decision between a noodle buffet and a greasy, overpriced burger required me to apply some budgeting principles I've picked up over the years. Budgeting means carefully weighing options and selecting those promising the greatest benefits, even if they don't involve dollars and cents.

"Young people make many budgetary decisions before getting into college: Deciding how to spend their time, which schools to attend, and which talents to pursue," states William Philips, a Turnersville, NJ-based retired ARCO chemical coast analyst and plant accountant with 28 years of budgeting experience. "Your whole life is a budget."

Bottom Line: Yes, You Need a Budget!
Whether it's figuring out what to eat for lunch or saving for school, budgeting involves sacrifices, but reaps big benefits. Just ask Ashley Graeff, a sophomore at Penn State University, University Park, PA, who limits her trips to the mall, dining at restaurants, and going to movies. She sees a bigger picture when it comes to her finances -- for Ashley, it's about having peace of mind.

"Money can become a very stressful issue if not handled properly," she comments. "[Budgeting] has taught me to save as much as I can because there will be more classes ahead of me that require expensive textbooks."

Avoiding impulse purchases can also reduce financial worries, says Catherine Zell, a freshman at Muhlenberg College, Allentown, PA. "If I didn't think about how much I spend, then I wouldn't have money when I really want or need something."

Thomas Verghese, a financial services practitioner with Mass Mutual Financial Group, Springfield, MA, says, "As much as a budget may seem to curtail spending, it also allows for spending that is planned in advance."

Verghese describes a budget as "a roadmap for your financial journey," one that's drawn by evaluating what you have and what you need, and by making decisions accordingly. Decision-making becomes easier as your roadmap takes shape and provides clear direction.

Philips recommends creating a balance sheet, which is a formal tracking of resources and expenses. List your savings and checking account balances and an estimate of your weekly income on a piece of paper. Divide your savings into two columns -- "available funds" and "cash reserve."

A cash reserve is an important safety feature to help deal with the unexpected. John Lee, a sophomore at Temple University, Philadelphia, PA, says the biggest benefit from his budget has been having extra money for emergencies. Even if you can move only a few dollars into your reserve, start small and build gradually. Your reserve may someday avert a desperate call to mom and dad.

List your expenses from the past month. Prioritize them, crossing out the nonessentials, like that heavy metal band's CD you really don't need. Use this list to create a predicted expense checklist, including estimated amounts, due dates for bills, and anticipated purchases.

Robert Ingraham, a financial counseling advisor for Lanco Federal Credit Union, Lancaster, PA, suggests projecting no more than three months in advance. "[Assume] the responsibility in increments of 90 days. Don't tell yourself that you need to [plan] the remaining 60 years of your life."

Total your projected expenses, including monthly contributions to your cash reserve. Divide the total by the number of weeks during your budget period. The result is the amount you must secure weekly to meet your expenses. If you perform odd jobs that lack a steady income, this figure, plus a comfortable margin, should serve as an earnings goal. Any weekly income surplus can be saved or allocated to nonessentials, like nights out, movies, and DVD rentals. If you find a deficit, revisit your expenses and consider ways to increase your income.

Pass Up the Plastic Power
Don't use your credit card to make up the difference, cautions Verghese. Plastic can be helpful in emergencies, but it can also be deceptive and unforgiving. "Credit cards may provide a false sense of having [financial] means, which in turn could become a trap," he adds.

If you have a card, make sure it has a competitive interest rate. Retail cards often possess higher rates and fees than those offered by established banks or credit unions. Introduce your high-rate retail cards to a pair of scissors.

The Budget Isn't Over ... Let's Revisit It!
Budgeting requires continuous refinement, says Philips. He suggests a three-step process: Review, fine-tune, and continue cash-curbing.

1. Review your budget weekly. Check off paid expenses, write actual amounts next to your estimates, and update your account balances. Ask yourself, "Did I meet my expenses, save some money, and do I feel more secure than I did last week?" Don't be afraid to make thoughtful changes to your budget. If you bought a new chair for your dorm, yet found yourself gnawing on notebook covers for sustenance, revisit how you distributed your resources. Keep a running list of unplanned expenditures as well. Even if your budget didn't work well for the first week or two, you're better off than if you didn't budget at all. Stick with it.

2. When you prepare your next three-month budget, use the actual expenditure amounts and unplanned expenses recorded on your previous budget to fine-tune your estimates. Elizabeth Zell, a junior at the University of Richmond, VA, benefits from the "big picture" her budget offers. "I've realized that besides what you plan for, there are a million little things you never think about that you spend money on." Your previous budget may even reveal spending habits you want to change.

3. Consider using a spreadsheet once you become comfortable with your budgeting to continue cash-curbing. Divide it into three parts: Savings, checking, and expenses. Use the sum feature to keep track of each category's total, and enter a formula to calculate your weekly savings requirement. Generating a new budget for your next three-month period will only require adjusting some amounts and adding or deleting items.

Although discipline is key to maintaining a budget, entering a dollar value is not required. As Catherine states, "You don't need to save all of your money, just be smart about how you spend it."

Use what you have creatively. (Throw a noodle party of your own!) Your financial planning should not become a source of anxiety. Most importantly, don't lose sight of why you keep a budget -- to feel more secure and independent.

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