Budgeting

Budgeting Advice

Why budget?

• You will get an accurate picture of your financial circumstances.
• You can make sure you have enough money for your priority needs.
• It can be a brake on impulsive spending.
• It helps you avoid running up debts
• It helps you plan your spending and identify areas where you could cut back
• If you owe money to creditors, a budget gives them information about your financial situation and can help negotiate a repayment plan you can afford.  

Budget Tips

Here are some tips on planning your budget and preparing a money planner (some of these tips our from LUU members).
 

Transport

Buy weekly or termly bus passes from http://www.firstgroup.com/students/ and young person's rail cards from http://www.16-25railcard.co.uk/.

As well as buying a weekly or termly pass you can Walk, ride a bike, or take the bus rather than drive or get a taxi. Car insurance and parking can be expensive.

Utility Bills

Make sure you are with the cheapest supplier for gas and electricity. Also make sure everyone in the household has their name on the bills, that way you are all jointly liable.

• Make sure that you remember to turn off household appliances when not in the house. 
• Estimate how much money you need to pay for bills and ask other students how much they think you need to put away.
• Limit your use of electricity (turn off lights, reduce opening the fridge). Put on an extra jumper to warm up rather than using a heater.

Telephone & Internet

Look for the cheapest packages, friends and family for example? - Would it be cheaper to have a pay-as-you-go mobile phone, so you don't run up big bills?

Make sure you put money aside for mobile phone bills and keep spending to a minimum like everything else. Also, try and get the best deal for your needs. If you have a land-line phone in the house, you could consider an incoming-calls only phone.

Alternatively, you should get itemized bills to make sure you and your housemates know who have made all the calls. For more tips and information on mobiles and internet check out the Ofcom guide here.

Food

Prepare packed lunches for work and Uni. When buying your food prepare a list and stick to it! Bigger supermarkets are cheaper than small local shops. Consider using supermarket own brands rather than brand names.

• Alexis, a student studying Nursing suggests planning a menu for the week.
• Sunil from Medicine suggests sharing food with housemates as this is cheaper and you can also keep an eye on each others spending.
• Clip coupons and eat at home. Pack a snack in your bag, rather than buying one each day.
• By cheaper foods e.g own brands, also you don't need to buy chocolate and crisps.
• Try to eat a well-balanced diet and if you do not know how to cook try to learn. It will save you a lot of money.

Books

Try to buy second hand books or even if a friend pays half the money with you so that you can share books, or even ask to borrow the book you need and then you give them the book they need.

• Anna from psychology suggests clubbing together with course mates to buy the main texts and share them.
• Sell course books in good condition to lower year students.

Clothes

• Plan what you need in advance so that you don't overspend on impulse. Bear in mind cheaper shops and charity shops.

• Instead of going to your normal expensive shops and spending loads of money cut down by going to: second hand shops; car boot sales; or discount shops and warehouses.
• When you want to buy something expensive, ask yourself: 'Do I really need it?'

Insurance

• Shop around for the best deal, many companies have deals for students.

Entertainment/Recreation

• Try to stick to a limit on spending money and holidays and book accordingly. 
• Invite friends over for meals or drinks at home before you go out to save money. When you do eat out look for early bird specials or 2 for 1 deals. Clubs are often cheaper to get in or even free before 10. Look for flyers to get in free. Cinemas often have student specials or 2 for 1 on certain days.
• When going out only take enough money to keep you afloat for the night and leave your cash point card at home, thus avoiding clearing out your bank account in order to buy everyone a drink and/or losing your card.

Cigarettes

• Nichola, a student studying Criminology recommends giving up smoking! Put the amount you save in a box, if you spend £2.10 a day hat will be £14 a week, and then reward yourself!

Credit Cards

• Use these only for emergencies and if possible get ones with 0% interest. Always try and pay off more than the minimum payment. Remember that even the minimum payment can start to add up to an amount that you may find hard to keep up with.

Savings

• Open a separate savings account where you can deposit the required monthly allowance for bills that do not fall due on a regular monthly basis or to deposit monthly amounts to help save for a holiday etc.

General Tips

• Think about all the little costs that add up. Coffees, magazines, make sure you budget for them too!
• Sometimes you might find it easier to take money out of the bank for food shopping or a certain event and pop it in an envelope so it can't be accidentally spent!
• Rich from Music suggests always checking your bank balance so you know exactly what is going on. Online banking is great way to do this.
• If you do find at any point you are struggling or if credit debts are getting on top of you don't ignore it. Seek help as soon as you can.
• Get a job that might help you to save more money, but just put some of it away just to make sure you don't go out and spend it.
• If you need a haircut check whether hairdressers in town need models.
• Use email and online chats rather than using the phone for long distance phone calls its so much cheaper!

Avoid

• Eating out
• Hair and beauty fashions
• Visiting places you don't really need to go.
• Cinema and theatre.
• Smoking.
• Share a house, apartment or flat with friends, it's a great way of saving money

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