How to manage your budget as a student

As a student myself, I know that we usually don’t track our expenses or we can say, we don’t even think that there is a need to do so. We receive pocket money or some income from a side hustle and we just assume that this is meant to be spent but at the end of the week or month we find ourselves broke and then we start to believe that we don’t get enough pocket money or don’t get enough payment. But, do you know that more money will never solve the problem. Planning your expenses will! And that planning is what we call budgeting.

I’ve included 8 recommendations in this article to help you budget your money better. As a student, I have personally employed these strategies and have saved more than ever before using them, as well as managed my budget like a pro.

Now that you know what budgeting is and why you should do it, let’s get started with these budgeting suggestions!

1.Calculate your income

First and foremost, grab a pen and paper and write all of the different ways from which you make money on a monthly or weekly basis. Many of you may have side hustles that provide you with passive income, while others may rely on your parents for pocket money. Simply put down the total amount of money you receive from all of your sources of income, regardless of the situation. This will provide you with a rough estimate of how much money you make, which is essential for efficient budgeting.

2. Track your expenses

Write down everything you spend money on now that you have your whole income in front of you. It can be anything: groceries, meals with friends, shopping, eating out, buying gifts, etc. When you write this down and calculate how much money you spend every week or month, you’ll get a good picture of what’s wrong with your budget.

3. Calculate the money-in vs money-out

You now have your income and spending in front of you. Draw a diagram to help you understand where you’re going wrong with your budget. I’ve included an example of the type of diagram you can create. This will allow you to see how much money you make and how much money you spend.

Money-in vs. money-out

4. Use 50 30 20 rule

This is a very popular budget rule which you can use to effectively manage your budget while still being a student. What this rule simply says is that devote 50% of your income for necessary expenses, 20% to your savings, and 30% for those expenses which are important but not necessary.

50 30 20 budgeting rule

5. Ask yourself if you WANT that thing or NEED that thing while purchasing

We, as students, are more likely to follow trends than adults. We shop most of the time because we like an item rather than because we need it. Students also shop to pass the time when they are bored. (I can almost hear you saying, “This is soo relatable!!”) . However, in order to properly manage your budget, you must eliminate this unnecessary spending. So, before pushing the “order now” button, ask yourself, “Do I really need this?” It works, believe me!

6. Use online budgeting tools made for students

For all students, technology is our best friend, and this is also true for student budgeting. To budget correctly, you can use budgeting calculators and applications. I’ve put together a list of some of the tools I personally use.

Budget Calculators

1. Save the student
2. UCAS Budget Calculator
3. This is money

Budget Trackers

1. Save the student spreadsheet
2. App-based bank accounts
3. good budget(Android, ios)
4. Money Dashboard(Android, ios)
5. Money lover (Android, ios, windows)

7. Start with a weekly budget

Don’t. I repeat, don’t ever try to start with budgeting for a month or year if you have no idea how to budget your money as a student. Begin small. Begin by creating a weekly budget. Make a list of how much money you aim to spend this week. Put them aside and use them just for that. Try to keep track of every penny you spent during that week and analyze your spending at the end of the week. This will make it easier to budget wisely without feeling rushed.

8. Set realistic Goals

When you’re a student trying to budget for yourself, this is the most crucial thing to remember. Don’t go overboard and put too many restrictions on yourself. Budgeting is similar to going on a diet. It is a way of life, not a one-time achievement. You’ll progress and save more money as time goes on, and you’ll have a firm grasp on your own money!

These were the tips you can use as a student for budgeting your finances like a pro!

Thanks for Reading!

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