Money-wise, a student’s life couldn’t be any harder! Keeping yourself on top of your balance can be tricky when there are too many temptations around you. Budgeting is essential and you can learn how to set your budget like a real expert.
Night-outs and sales are a painful temptation for any broken student. Before letting the FOMO devil whisper in your ears, find how you can build your budget and save some quids!
As you start university, a new world starts in the good and in the bad. Too many responsibilities and many expenses are on your way, dear student. Personal finances are a prickly affair to deal with too.
I survived abroad as a student and I was broke at the very start. However, I learnt what to get well organised to pay my fees and bills on time and have some extra for myself and others. The solving word is ‘budget’ and budgeting can be taught like any uni subject.
Budget, this stranger. Why do you ever need to set a budget?
The budget tells you how much you need in a certain span of time, whether it’s a week, a month or more. It’s a plan that takes into consideration two essential factors: money in and money out, to make it simple. You’ll need a budget to know how much you need and how much you can actually afford so that you’ll never run out of money or go into your overdraft.
How to budget like a pro
Goodbye broke wallet, welcome serenity! Distress is stress and, as a student, you don’t need more headaches, do you?
To create your budget you need to know your income, your outgoings and your extra expenses. Here’s how:
- write down your income, including your student loan;
- pinpoint your fixed expenses, such as tuition fees, bills – including your mobile and internet contract – and rent;
- calculate how much you spend on essentials and groceries per week or month on an average;
- take note of any commute or university expenses.
Had set everything, take all your outgoings from your income, and you’ll get an amount of money you can spend on other things. This is your living budget. As easy-peasy as it sounds, it doesn’t mean you can spend your budget all in one go as soon as you pay the rent. You’d risk going into your overdraft, which is potentially dangerous for your future credit score.
NOTE: as just seen above, there are many expenses on an average month. You’ll need also to be aware of the smallest direct debits you might have set and forgotten. Companies surely don’t forget!
Top Tips to save like a pro
The broke me was always thinking weekly but planning ahead. Here are my experienced tips; they allowed me to stay on top of everything while studying abroad and enjoy some treats once in a while.
- Set a big grocery day for the whole week and add an extra trip for any last-minute needs. Knowing this sum also helps whilst understanding your budget.
- If something grabs your attention, question yourself ‘do I really need this?’ No? Then wait. If the question comes back again and again, then consider the purchase if it’s within your budget.
- Make the most of student discounts. Join Totum (formerly NUS card) and subscribe to discount websites like Studentbeans and MyUnidays, two platforms very popular in the UK.
- Keep a list of favourite brands reserving discounts to uni students in store even if not listed on your discount website. Asking at the till costs nothing.
- Find what you can get for free as a student, a citizen of your state, or for your specific academic course. It’s not just about goods, free services can range from medical expenses to museums exhibitions.
- Save on your travels and commute. Have a look at your public transport company for any special deals and student cards. Some universities may have arrangements with local transport for the benefit of their students.
- Go second-hand to save money on everyday fashion, accessories, and designer’s apparel.
- Have some cash money when shopping. Having real ‘cash on hands’ – feeling the weight evaporate as you buy – help you understand the value of money and, subconsciously, buy less.
- Keep your money in separate accounts or pots. Whether you prefer to split your money physically, virtually or both, putting some money aside is always a good practice.
- Apply the so-called ’50/30/20 rule’ to allocate percentages of money for different purposes. These are 50%, 30%, and 20%, hence the name.
EXTRA TIP: subscribe to the newsletter of your favourite e-shops and brands. Good deals help you save on pondered purchases.
Tip #8, #9 and #10 are more specific and are about the future of your money. Underneath, there’s the need for security and organisation. Our grandparents were used to putting some money under the mattress or a money jar, so you can with saving accounts. When I arrived in the UK, I had my brand new UK account and my Italian debit card, I saved the new account to pay my fees and receive my loan, while my older account became my spending tool. As I started to own physical £, I applied tip #8 with quite of success. These 10 rules will accompany you from university to adult life, when new necessities and responsibilities arise, then you will need more help so you will need to learn more.
Tip #10 is one of the tips for life and you’re going to realise its importance when you’ll step into adulthood. 50/30/20 is a good reminder of what you should do with your money and life: 50% is what you really need, 30% you wish or want and 20% is for the future, plans or any emergency.
Slow down, student. You’re saving now but you can’t get everything you want! At least not always: appreciate what you have, what you can reach and the money fruit of your hard work.
Valentina Chirico aka Valens
Image credits: Ph. Kristina Paukshtite, Pexels Ph. Nataliya Vaitkevich, Pexels Ph. jeshoots-com, Unsplash Ph. Karolina Grabowska, Pexels Ph. cottonbro, Pexels
