Budgeting

If you are a student there are good reasons to keep a budget. It will:

• give you an accurate picture of your financial situation
• identify where you could save money
• show you and anyone else (such as your parents or your bank manager) that you are handling your money wisely
• prevent you from running up a debt that you will have to pay back with interest

Write it down
Record your spending – keep track of what you spend, so you know where every penny goes.

Spread your money
If you take out a loan, spread it across a period of time rather than spending it all at once.

Be sensible
Think about looking after your needs for tomorrow rather than living for the day. Having a roof over your head is more important than looking good, so rent comes before that new pair of jeans!

Create a personal budget
Draw up a monthly budget. Include your income and expenditure. This is called a financial statement.

Maximise your income

• Firstly cut your spending on luxury items or non essentials
• Secondly, see if you can save on your essential supplies, like gas and electricity. uSwitch can help you compare prices on gas and electricity, home phone and broadband and switch to a cheaper plan
• Studies permitting, try and get a part time or holiday job

Be honest
Allow for coffee, text messages and nights out.

Prioritise
It’s important to put enough money aside for the essentials, like rent (or residential fees), food and gas and electricity.

Pay by instalments
Your quarterly household bills can be more than you anticipated. Think about paying these bills in instalments, so you are not hit with a big bill. You can set up monthly Direct Debits with your suppliers.

Be disciplined
Stick to your budget. Take a shopping list to the store and resist items you don’t need. Try not to make impulsive purchases.