Budgeting basics for students

When you're a student, money can sometimes be pretty tight. Between rent and food, course fees, textbooks and going out, it’s easy to find yourself skint by the end of the month.

The good news is that you can take a lot of the stress out of student life with a decent budget. There’s no such thing as a one-budget-fits-all approach and everyone is going to have different priorities for how they spend their money. But if you don’t know how much money you’ve got coming in and how much is going out, you’re going to struggle to make ends meet.

Here are five easy tips to help you budget for the coming year:

1. Dive into the numbers

Your first job when you’re putting together a budget is to know where your money is going. Go through your bank statements for the past few months and break down your spending into categories. These could be rent, food, expenses like phone and internet, uni fees and books, entertainment, the gym – the list goes on.

The idea is to work out a monthly total on your essential spending – the stuff like rent that you just have to pay – and your discretionary spending (the fun stuff you could theoretically do without).

2. Pay essential expenses first

We all love seeing the monthly boost to your bank balance when your pay or student allowance goes in. But remember – a lot of that has to go out again on your essentials. To help you resist temptation, set up as many automatic payments as you can and have them go out as soon as possible after you get paid. That way, you won’t have lots of money sitting around, just asking to be spent on something you don’t really need.

3. Joint flat dinners are both budget-friendly and a great way to avoid over-spending on takeaways

If you’re in a flat, pooling your resources – particularly when it comes to food – can be a good way to save some cash. A flat of five, each paying $25 a week into the kitty, means you should be able to get five home-cooked dinners a week without breaking the bank.

One other tip – never go supermarket shopping when you’re hungry. Those checkout counters are stuffed full of snacks designed to get you spending a little more while you’re waiting. Make a list of what you need before you go down to the supermarket, and don’t get distracted by the Mars bars!

4. Entertainment should be a part of your budget

Living on a budget doesn’t mean you can’t go out and have fun. In fact, a good budget should include entertainment costs because you need to enjoy your student years too.

For instance, if you’re planning for a night out, work out how much it would cost -  transport, drinks, tickets, doorcharges  – and then average that out over a month. It can look like a lot when you write it down but the trick is to put aside money even when you are living at home during the holidays, and during exam periods.

If you decide to stay in, keep paying yourself that entertainment money. Left over money in the entertainment fund can be great for concert tickets, surprise outings, and something extra special for the end of exams.

5. The last of your weekly budget should go towards an emergency fund

If you can manage it, it’s a good idea to set aside some cash for an emergency fund for any unexpected costs that crop up during the year – a smashed phone, an emergency trip home, or unexpected health costs.

Even if you’re just putting in a couple of dollars at the end of each month, every little bit helps. Put your emergency dollars in a separate bank account - ideally one you can’t access from your debit cards – to make sure you don’t dip in for non-essentials.