![]() Think about how much you spend (or need to set aside) for: Once you’ve got all your income sources, add up the amounts. Divide these by the number of months the money has to last to work out a monthly figure. You may get some of this income in one-off or bulk payments. Hardship funds and other emergency support.Welfare benefits or disability allowance.List the money you have coming in each month. There are also loads of interactive budgets you can use online or by app such as this Money Advice Service budget planner.A spreadsheet program like Excel is a good option if you want to save or update your budget and the software can even do the sums for you.It can help to keep a calculator to hand. You can make a budget on a piece of paper or in a notebook.Follow the steps below to build a budget. Budgeting makes sure you don’t overstretch yourself and it can help you prioritise your spending.īudgeting doesn’t take any complicated maths or special equipment. This is especially handy if you face unexpected costs or a drop in income. Planning these in advance is a great way to stay on top of your money. Making a budget usually involves deciding how much to spend on things that are important to you – for instance rent, food and socialising. If you ever run out of your student loan or struggle to make ends meet, a budget can help you get back on track. Simply put, a budget is a plan for how you want to spend your money. Even having a go can lighten some of the stress of money worries. Make money management a routine: Review your spending patterns and records each week or bi-weekly at a set time.It can show you what you have to work with, and how to get through tough times.Choose a record-keeping system: Whether it’s a notebook or an app, decide where your budget information will live and stick to it.Don’t forget the little expenses that add up: clothing, ATM fees, dinner out, data overages, etc.Consider a separate bank account for fixed costs and automatic payment plans, so your casual spending won’t leave you short for must-pay bills.Once you’ve paid off your debt, transfer that same monthly amount into a savings account for a future goal.Do you need to subscribe to both Netflix and Hulu? If your fixed expenses are high, reconsider your expenses.You can’t predict every expense that arises. But if your monthly balance leaves you in the black-or better still, with income left over-keep up the good work! You’ll be glad you did. If your expenses outpace your resources, you need to rethink your strategy. Did you stay on track? Was there a shortfall? Are there adjustments that need to be made going forward? Wants are things that you could do without if you had to.Įvery month or two, measure how well your income is balancing against your expenses.Needs are things required for daily life-food, clothing, housing, and unavoidable costs associated with being a student.wants. Needs obviously get priority, and every budget should cover those first. Know the difference between needs and wantsĪ good starting point for creating a budget is to designate needs vs. Saving offers an added sense of financial security and stability, while creating a lifelong habit. The amount you put away doesn’t matter it all adds up. But the best thing you can do financially is to save a little every single month. If you have any resources left after all your expenses are paid, it’s easy to think of the extra as just more spending money. Download a budgeting app, keep a tracking document on your laptop, or carry a notebook. While monthly fixed expenses come with bills and reminders, flexible spending does not, so it’s up to you to keep track.What are your flexible spending expenses? These include food not covered by a dining plan, clothing, and leisure activities. ![]() ![]()
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