Budgeting
Tuesday 6 January 2009
If 2008 wasn’t a year for budgeting then make sure 2009 is. Here are just some ways you can cut down on the spending.
Budget table
The first thing you should do is create a budget table to figure out how much you have to spend. As income can change it’s probably better to complete this monthly.
Take into consideration work income, student loan, any maintenance payments or pocket money, and then add them all up.
Next think about your expenses such as rent, bills, food, educational materials - all the important things first - and deduct them from your total monthly income. If you've got anything left over, you can deduct other expenses that aren't so important, such as clothes, going out and other bits and pieces.
Of course, don't keep spending until every single penny is used up – it’s never too late to save.
Student budgeting
Educational materials should always be a priority when budgeting. But there are ways to get cheaper products.
Instead of buying brand new text books why not browse online? Amazon and eBay sell new and second hand books all the time – and they’re cheaper too.
Another option is Google Books. It provides part and full chapters for free!
Rent has sky rocketed by a massive 20 per cent in the last four years. If you live close to home then consider moving back with the folks. You’d save a few hundred a month and you wouldn’t have to worry about food expenses, electricity bills and a smelly kitchen.
If this isn’t an option then get ready to put aside rent and money for the electricity bills. Check when the bill comes, often you’ll have to pay it once every semester, and make sure you have at least £50 - £100 (sometimes more) put aside in your budget plan.
You can save some electricity by timing your heater to turn on and off at appropriate times and switching off all devices when not in use.
Here are some more money saving tips.
Food is good
Rather than spending money on lunch every single day, why not make something? It’ll probably be healthier and your wallet will be heavier too. You could save up to £20 or more a week by doing this.
If you’re responsible for doing your own shopping then you need to make a grocery list. Be realistic and avoid foods you don’t need, or worse, can’t afford.
Attempt to shop at least once every two weeks and avoid smaller and more frequent shopping trips that will cost more in the long run.
Don’t forget to include the grocery shop in your monthly budget table plan.
Travel
Commuting prices have soared in recent years. If you have to take the bus or train to school, college or uni, then it’s probably best to buy a weekly or monthly travel card.
As it’s one fixed cost it’ll be a lot easier to include in your monthly budget than loads of daily travel cards.
Party goers
It’s always good to let lose once in a while – but it’s important never to over do it by spending a fortune.
Before going out consider how much you can afford to spend, and only bring out that cash amount with you. Forget about bringing your debit card because more and more pubs and clubs are accepting it as a form of payment and you might end up using it.
Choosing the right account
There are loads of banks out there that provide good interest rates and special offers - for instance, Natwest offer railcards with every student account. If you’re already with a bank then you always have the option to move elsewhere, but you may be charged for this.
Since you’re planning to save, it might be worth opening up an ISA account. It saves on tax and so you get more back. Read more about ISAs here.
