3. Calculate your weekly or monthly budget
Once you have numbers for your monthly income and your essential outgoings, you can work out how much money you have left over. Subtract your essential monthly outgoings from your monthly income. The number you get is how much money you have for fun stuff and savings each month.
Bear in mind that this figure can fluctuate; which means it might also be a good idea to look at getting a part-time job. Popular methods of lowering any of your essential expenses could also include:
- Walking to uni rather than paying for the bus.
- Buying second-hand coursebooks rather than brand-new ones.
- Cancelling any unnecessary or expensive subscriptions.
Based on the money left over after your calculation, you can work out your monthly budget for all your non-essential spending. This could potentially include:
- Clothes, shoes and accessories
- Eating out
- Takeaways
- Nights out
- Hobbies or sports
- Entertainment, e.g. cinema tickets.
- Haircuts or beauty treatments
- Books
- Christmas birthday presents
- Holidays
- Festival or gig tickets
- Savings
You don’t have to have a monthly budget for all your non-essential spending, but it can be a good idea to budget a specific amount for certain categories. For example, if you know you tend to spend money on pricy nights out, you might set a monthly budget for this to avoid over-spending. Whatever you do, it’s good practice to ensure your monthly spending doesn’t exceed your total budget for non-essential expenses!
Some things can be really difficult to budget for, especially things that you might only buy occasionally, like presents, festival tickets or flights. Consider setting aside some money each month to save for these items. For example, you might open a savings account or savings pot and save some money each month for your summer break. When the time comes to start arranging plans with friends, you’ll have the money ready to go.
Bonus step: track your spending
Although creating a student budget is a great place to start, you should aim to track your spending to make sure you’re actually sticking to it!
When it comes to creating a budget and tracking your spending, you can use a couple of different methods.
Go old school with a spreadsheet
If you want to keep things simple, using a spreadsheet is the best way to go. You can create your own or use an existing template. This student budget spreadsheet from Nottingham Trent University is a great option – you can select the month and fill out your monthly income and expenses. Then, it’ll automatically determine how much money you have left over. Save the Student also has a round-up of student budgeting calculators, which you can check out.
Keep track with helpful budgeting apps
There are loads of budgeting apps out there which are designed to help you keep track of your spending. This is ideal if you do most of your spending with your card or online rather than paying with cash.
Some apps can link to your bank account and automatically track how much you spend on each category. Just make sure the app is reputable, well-known and has plenty of positive reviews, as it’ll have access to your financial information.
Here are some budgeting and banking apps with free options:
- Cleo. This AI assistant is designed to help you manage your money, improve your budgeting and offer financial advice. Cleo works through Facebook and takes a read-only look at your bank accounts. You can set budgets, and your spending is automatically categorised to help you keep track of your finances.
- Plum is a money management app that links to all your bank accounts and credit cards to give you a complete picture of your spending. It can automatically save small amounts of money by rounding up your transactions.
- Emma is a budgeting tool that connects to your bank accounts and allows you to track your spending, stay out of your overdraft and cancel wasteful subscriptions. There’s a free plan and several paid-for plans offering more personalised insights into your spending.
- Money Lover. This simple and free app offers an easy way to track your spending, but you’ll need to manually input your transactions as it doesn’t link to your bank account.