Tip 4: Budget according to your finances
There’s lot of ways you can budget – perhaps through an app such as Yolt or Money Dashboard; or app-based banks such as Starling and Monzo. Alternatively, an online budget calculator, spreadsheet or old-fashioned pen and paper. Whichever suits you best, it’s less important how you budget and more important that you do it!
We’ve put together our simple step-by-step guide for budgeting beginners below:
Start by working out how much money you have to spend. Find the Maintenance Loan you’re likely to receive. Divide this amount by 3.5 for your monthly income.
Here’s what the average student spent their money on 2020. It’s a good idea to start looking at your fixed costs . Then add in your everyday spends and occasional costs, such as birthdays, books or course supplies.
If you can afford it, putting a little away each month is a good idea to cover unexpected costs like the dentist or phone repair – it can prevent you from dipping into your overdraft.
Once you have worked out all your outgoings, subtract them from your income to make sure that you have stayed within your budget.
Don’t give up if you spend too much on a night out – just work out how you can spend less in the remaining month. Perhaps not getting a morning coffee before a lecture, or getting some more basic groceries in will get you back on track.
Write a realistic budget. It should reflect the way you actually spend your money. Do you want to go out with friends regularly? Write it into your budget.
Do you have money for an unexpected cost like a broken laptop or sudden birthday celebration for a friend? It can be a good idea to put a little money in a savings pot.
Make sure to budget for term breaks. You don’t want to be caught out over Christmas or summer holidays. If you plan on working during these times to help cover the costs, think about when you will look for a job to ensure you are hired.
Check out app-based banks such as Starling and Monzo who offer guidance and help in budgeting. Many other high street banks are incorporating these features in their apps.
