As a student you have to briefly explain how you spend your monthly budget
writes about student money and university life. She's the author of several editions of The Student Money Manual.
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It’s natural to feel financially unsettled by recent challenges such as changes to the cost of living and the pandemic. Making a budget can help you feel more confident in managing your finances. It can show you what you have to work with, and how to get through tough times. Even having a go can lighten some of the stress of money worries. Simply put, a budget is a plan for how you want to spend your money. If you ever run out of your student loan or struggle to make ends meet, a budget can help you get back on track. Making a budget usually involves deciding how much to spend on things that are important to you – for instance rent, food and socialising. Planning these in advance is a great way to stay on top of your money. This is especially handy if you face unexpected costs or a drop in income. Budgeting makes sure you don’t overstretch yourself and it can help you prioritise your spending. Budgeting doesn’t take any complicated maths or special equipment. Follow the steps below to build a budget. Step 1: Choose where to make your budget
Step 2: List your monthly incomeList the money you have coming in each month. This might include:
You may get some of this income in one-off or bulk payments. Divide these by the number of months the money has to last to work out a monthly figure. Once you’ve got all your income sources, add up the amounts. This is your total monthly income. Step 3: Track your monthly spendingThink about how much you spend (or need to set aside) for:
Not sure what you spend? Check bank statements and receipts, as well as any banking apps or digital wallets you use. Or use this breakdown of student spending to jog your memory. It’s also fine to use estimates. Add up your spending for the month. This is your total monthly spending. Step 4: Balance your budgetThe goal is to spend less than your income each month. You can check this by subtracting your total monthly spending amount from your total monthly income.
Putting your budget to workPick a regular date to go through your budget. The start or end of the month is a good idea, but you may want to check in a bit more often while your finances fluctuate. Pay essential costs first. Or put the money aside in a safe place or (even better) a separate account until bills become due. If you have any income left over after essential costs, divide this between your flexible costs. But don’t just spend as you go. Set limits for each cost and try not to pay more than that each month. How I cope with financial problems and stress - Caroline Tackling problemsThe cost of living might put on extra pressure and you might sometimes find your essential costs are greater than your income or funding. Start by reviewing what's in your essentials list. It's normal to see the things we enjoy or appreciate as essential, but try taking a step back. Is some of this actually desirable but not essential?
If you’ve checked this and still have more essential costs than you have money coming in, make an appointment to speak to someone at your university. Many universities have support funds for students who experience financial hardship and can provide you with expert advice to tackle money worries, especially debt fears. You can also find practical ways to deal with accommodation and other tricky costs in what to do if you have money problems. Keep goingYour budget doesn’t have to be perfect on the first go. Like anything, it gets easier with practice. Once you get the hang of it, give yourself a money goal. This might be about building up your financial security or working towards a balanced budget at the end of each month. If you have enough income, you may want to pick something to save for. It could be an emergency fund or a treat to reward you for your hard work. Decide how much to set aside each month. Or challenge yourself to cut back on unnecessary spending, and funnel the savings into your goal instead. How important is budgeting to your life as a student?Budgeting helps you achieve academic and financial goals.
Budgeting involves challenging decision-making, but setting goals will make the tough choices a little easier. As you create a budget, you'll want to set short-, medium-, and long-term goals and track your progress toward achieving them.
What are your personal expenses that you spend your money with as a student?Room and board or rent/mortgage, utilities, and groceries. College tuition, fees, textbooks, supplies. Transportation. Insurance (health insurance, car insurance, etc.)
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