Being a student at university means having to manage living expenses as well as university fees, so it’s imperative to know how to set a suitable budget to avoid a situation where you don’t have enough money to feed yourself for the rest of the month.
Putting a budget plan together is fundamental for students, so you can be aware of expenses and manage money in order to cover all their living costs.
Below are three steps you need to follow in order to understand your weekly budget.
Calculate your income
It should be simple for you to calculate the money coming into your bank account compared to the money that is going out. During your time at university, there are various potential sources of income such as:
- Student loans
- Grants, sponsorship or scholarship you could be eligible for
- Money gifted from your family
- Part-time, hourly work income
- Savings you’re planning to spend at university
Once, you know your income, focus on your outgoings.
Calculate your outgoings
Estimating your outgoings can be hard, as you can spend money in different ways. Furthermore, your fees will depend on different factors such as where you’re going to live, how you will commute to university or if you will be using your own car.
Below are the most common outgoings, grouped in four separate categories: university expenses, accommodation bills, travel expenses and extra.
- Tuition fees
- Accommodation fees
- Gas and water
- TV Licence
- Food shopping
- Public transport tickets
- Car insurance
- Car maintenance
- Take away
Figure how much you can spend a week
Once you have a good idea of your income and outgoings, subtract your outgoings from your earnings and divide the result by the number of weeks there are during a term. This way, you’ll have an idea of how much money you need to live week by week. Keep in mind that it’s crucial you don’t spend more than this amount.
Keep track of your income & outgoings
It’s important you keep track of in goings and outgoings to have your budget under control. You can monitor these by easily using your smartphone or recording them in a spreadsheet.
Nowadays, there are various applications that can help you get your finances under control. New finance and budgeting apps are released almost every day; however, it’s important to pick those that represent your income and expenses clearly and don’t crash. Why don’t you try applications such as Mint or Wally?
In conclusion, during your university years, you should keep track of your expenses and income in order to understand how much you can spend every week to avoid situations where you don’t have enough money to live.