Money Saving Tips- How to Budget

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Welcome to the world boys and girls- learning to manage your money by yourself is often one of the most challenging things a new (or old) student will face- and by no small coincidence also  one of the most ignored challenges  –  ignorance is bliss comes to mind! But throughout this weekly column, I am going to attempt to convert you all  into thrift kings and queens- Macklemore style! …

Maybe if I'd budgeted, I could have afforded a proper hair cut...
Maybe if I’d budgeted, I could have afforded a proper hair cut…

Okay so let’s not be too ambitious! Whilst I don’t expect you to immediately relinquish all luxuries and live on a diet of bread and water, it is vital to realise that a few careful foresighted steps can help you save money without huge sacrifices, as this new weekly column will  show you! So naturally, the first step for a healthy bank balance is… BUDGETING!

The beauty of budgeting is, if you do it properly (and try to stick to it) you are set for the year! By pre-empting income and costs, you will hopefully avoid nasty shocks, as well as being able to give yourself a figure to stick to. Another great thing about budgets is that when properly done, you may even end up with some surprise extra cash.  The key is to overestimate your spending, so that as well as being on the safe side of your bank, you may end up with a bit of extra cash to treat yourself with.

So let’s learn how to budget, with seven easy steps, Blue Peter style:

 

You will need:

–  an idea of your yearly income (e.g student loans, generous parents, part time jobs

-an idea of your  rent for the year (bear in mind if your bills are included or not)

-an idea of your bills for the year

-a calculator!

-paper/excel

 

Lucy couldn't help but think there must have been a quicker way to do sums...
Lucy couldn’t help but think there must have been a quicker way to do sums…

1. First of all, subtract the total of your yearly rent and bills from your yearly income

2.I know this may not be the most popular idea, but try to also set aside another  £100-200 for big unexpected costs (e.g. if your laptop breaks)

3. Make some estimations for some of the ‘big’ costs you may incur, which won’t happen every month:

–  text books/ study material

– transport

– holiday

– christmas/birthdays

-clothing

-deposit/admin fees for houses

TIP: always overestimate, you’re  bound to discover another birthday/ costly textbook (which will probably remain unread)

4. Subtract all of these ‘big’ one off costs from the yearly figure so far.

5. Divide this new yearly figure by twelve. This is now your monthly figure

6. Make an estimate of how much you might spend on food a month (if you shop wisely, it should be between £20-30 a week)

TIP: it may be helpful to have already drawn up a weekly shopping list

7. Take the food figure off , and what you have left is yours to play with!

 

Now comes the tricky bit- sticking to it! Later on in the series, we will talk about making budget swaps, and cutting costs to give yourself extra dosh- watch this space…

 

Here are some useful budgeting websites, which do all the hard work for you:

http://studentcalculator.org/

https://www.moneyadviceservice.org.uk/en/tools/budget-planner?gclid=CIXIoteF07gCFchX3god2CUArw

http://www.ucas.com/how-it-all-works/starting-your-studies/managing-money/figuring-out-budget

 

 

 

 

More articles in Money Saving Tips
  1. Money Saving Tips- How to Budget
  2. Money Saving Tips- Food Shopping
  3. Money Saving Tips- Freshers
  4. Money Saving Tips- Getting a Job that Works for You
  5. Money Saving Tips: Shop Smart!
  6. Money Saving Tips: Beauty
  7. Money Saving Tips- Travel
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Discussion2 Comments

  1. avatar

    Might be worth sorting out the formatting on this article…will make it easier to read and less all over the place

    Kerry Sclater
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    Thanks for your feedback, we love to get constructive criticism and it is definitely something I will work on in the future!

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