Thursday, 19 August 2010
Going to Uni is an exciting time, with lots of new experiences, and maybe the first time you’re in command of your own money. The world is your oyster – so make sure you get the most from your cash.
The thought of drawing up a budget and sticking to it might not sound like much fun. However, there are some really good reasons to do it – the best one being you'll have more money to spend on the things that are important to you.
Thinking of budgeting as a way to help you afford the things you want makes it easier than if you focus on the things you won't have.
The three best reasons to budget are:
Quick intro
First of all you need to figure out what your total income is by adding together all sources of money coming in – salary, benefits, money from parents – but NOT any borrowing!
Next you need to work out what you currently spend. You could start by keeping a spending diary for a week and writing down the cost of everything you buy. You can keep track of your day-to-day spending via your mobile phone using the Moneybasics Spendometer.
You might also need to estimate the costs of some things. Do some research by going back through your last three months' bank statements to see how much you’ve spent on various things. It might also be helpful to know the average cost of some items. Manchester University has drawn up a price guide of average grocery costs in the UK.
Now you should have an idea of your outgoings. If you're spending more than you earn, you need to take steps to change that – quickly. Even if you’re living within your means there might still be some really good reasons to make changes. For example the amount you spend on buying lunchtime sandwiches over a year could buy you a week in the sun, and your daily coffees might add up to a pair of Jimmy Choos!
You can draw up your own budget, but there are lots of tools available online to help you do this. Set yourself some realistic targets – don't set yourself up to fail. Also, build in some treats, for example if you plan to make your sandwiches for lunch, allow yourself one day off a week.
How to cut down your spending
We've put together some lists of tips that might help you to find ways to cut your spending. This is a cross-section to start you off, but you might want to do some additional research. Some of these resources are on other websites, so you need to be aware that that CFEB is not responsible for their content.
Find out more
We've put together a short list of resources you may find useful. This is a cross-section to start you off, but you may want to do some more research. Some of these resources are on other websites, so you need to be aware that that CFEB is not responsible for content you find on these websites.
Users can rate articles with between one and five stars; this is not a CFEB rating.
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This budget planner will help you work out how much money you have available each month.
This simple budget calculator lets you track exactly where the money goes every month.
This simple budget calculator will help you balance your income and expenditure to ensure you keep on top of your finances.
This simple budget planner analyses your finances and helps you manage and control your cash.