Student Budgeting: How To Manage Your Money While You Study
For many, moving to university marks the first true experience of freedom.
Living away from home, and having to figure out a budget for (possibly) the first time in your life is no easy feat, but it’s a necessary plan if you don’t want to run out of money in your first term.
Setting out a budget isn’t hard, although it can be tedious, but that’s why we’re here to help!
Calculating your Budget
First and foremost, you have to start with an idea of what your budget actually is. If you don’t do this, you run the risk of living far beyond your means, and no one wants that!
Income
For many students, they’ll have access to a maintenance loan which forms the main part of their income, however income could also come in the form of savings, help from parents, or a student job. Work out how much you have coming in from all of these avenues to set the baseline amount.
Outgoings
We recommend calculating your outgoings based on either a weekly or monthly basis, this will make it far easier to keep track of in the long run, and will help give you peace of mind and awareness of where your money is going.
Once you’ve decided on the time period, split it into two categories - essentials and optional.
Essential outgoings include things like:
Rent
Food
University supplies
Optional outgoings include:
Time to calculate
Finally, to calculate your budget, take the total cost of all your essential outgoings and subtract it from your total income, this will give you the amount that you have to spend on whatever you want.
Budgeting Techniques
So what is the best way to keep track of my budget? If you’re finding it hard to get started then your best bet is looking at apps like Yolt, which let you see exactly where your money is going. Some banks like Monzo also have functions that show how much money you have remaining for the rest of the month, which can help you oversee your spending day-to-day.
Not everyone is a fan of using apps for budgeting, in which case you can use a good old-fashioned spreadsheet.
How to make your money go further
Oftentimes, it can feel like you have more money going out than coming in, even if that’s not the case. Unfortunately, more often than not students are living paycheck to paycheck and have to subsidise their maintenance loans by getting part time student jobs alongside their studies. While this isn’t necessarily a bad thing, ideally you want to be spending your time focusing on your studies.
To buy or not to buy?
Firstly, when you’re making purchases that are non-essential, it’s a good idea to ask yourself whether or not you need it, or just want it. If you need it, then buy it, if you just want it, ask yourself whether or not you’ll actually get any use from it. If the answer is “no” then it’s probably a good idea to pass. This is also a great way to live more sustainably as a student.
Student Discount
Always make sure to ask for a student discount, even if it’s not advertised. Especially in student cities like Newcastle, more often than not businesses will offer a student discount to those who ask, and even if they don’t, there is definitely no harm in checking.
Shop Around
One of the best ways to save money is by shopping around and comparing prices. You’ll often find that different businesses are selling the same (or very similar) things for different prices, so check them out - you could save yourself a fortune.
In addition, try and find dupes of products that you want. Places like Aldi and Lidl are known for doing dupes of all kinds of things (not just limited to food), so you may be able to bag a bargain.
Savings
Keep in mind that it's wise to set aside money for savings by creating a rainy day fund. This fund can provide a financial cushion in case of costly emergencies, such as repairs and damages to items, and unexpected circumstances. Having this financial safety net ensures that you're better prepared to handle unforeseen expenses without jeopardising your financial stability.
It’s recommended that you have at least 3-6 months worth of money saved in your rainy day fund, however for the vast majority of students this is very unattainable. Instead, focus on saving as much money you can, even if you can save 5% of your income, it’s better than nothing
Student Housing in Newcastle
For students coming up to Newcastle to study, your student loan will go a lot further than it would if you were in London. The cost of living is lower, and so you’ll be able to find a student property in Newcastle for a fraction of the price.
Seekers have a range of student properties in Newcastle that are available to rent suitable for all budgets. For more information about the properties we have up for grabs, get in touch with us at enquiries@seekersproperty.co.uk, or take a look at our current range of student accommodation in Newcastle.
