Tuesday, January 3, 2017

How to Budget at University

Hey guys,

Budgeting is the key to not drowning in debts at university. Everyone has their own way of working out how much they have and how much they want to spend and obviously everyone comes from different financial backgrounds so some rely fully on their parents, some are semi-dependent and some are fully independent. In my first university year I was semi-dependent on my parents and the government's student finance. In the second year I have been very independent by choice. I managed to find a job and putting the money from student finance together has made it bearable.

This is a rough guide to how I worked out my budget for the next term starting in 2 weeks. 

Money In

First of all put down all the money that will be coming in at the beginning of term.
- student finance
- any work money balance from working in the holidays
- parents money allowance? 

Money out
Then takeaway the money going out of  your bank account which is not avoidable at all and has to be paid. Gym membership, water bill, electricity bill, rent (accommodation fees). 

To be able to budget successfully I set myself a treat at the end of it. For some it may be make up, clothing, electronics. For me it is travel. 
Work out how much this treat will cost you. e.g. If your trip to Sardinia costs £300 pounds take that sum away from your money in. 

Now that you have taken away the money out and treat money the sum you are left with will be the money you have for the whole term. Your living costs to cover food, washing clothes and going out. My term lasts 12 weeks so I divided this sum by 12. This will give you a weekly budget. If your weekly budget ends up being a ridiculous number such as £10 then you know for sure it's not going to be enough. This is when you go back to your treat and find a cheaper treat. So if you had a £300 trip down change it to a cheaper option. At the end, if you have followed your budget plan you will be able to get your treat too. If you don't you have used up your treat money so it's up to you whether you get what you want by budgeting or whether you spend it in the moment on pizzas and don't get your holiday abroad.

This is an overall equation to summarise how to work your budget out.

Weekly Budget = [Money In - (Money out + Treat)] / 12 
(my term is 12 weeks long, if you term/semester is shorter divide it by that many number of weeks) 

I hope this helps you guys! 


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