Budgets
Whether your a university student or not, budgeting is a important life skill to have. If your a university student reading this, you know the struggles when i comes to balancing work, University, social life and money. Sometimes the bank account has to take a hit in order for you to get that next assessment done or you end up working instead of getting that time with friends or family.
This is when a budget/plan comes in. It helps you manage your finances by planning ahead based on what you might spend or what you might be saving up for.
Documenting your expenses
The first step towards a budget is working out how much you earn vs how much you spend. This means displaying your set expenses (rent, phone bill, insurance etc) + what you might spend on average per month. Then offsetting that by working out how much you earn on average a month (fortnightly also is a great option).
This helps you calculate whether at the end of a typical month your making a profit or a loss
Make a Budget
The budgets job is to limit your spending or give you a set amount your allowed to spend each month/fortnight, based on your income.
e.g. If I'm spending $300 a month on my expenses + $500 a month on costs (food, events etc) and earning $900 then my net income a month is $100.
If i then decide i want to save $250 every month, i have to budget and ensure Im spending less on my costs per month. This might mean limiting the number of expensive meals I have or avoiding expensive events.
A budget allows you to set a goal that you then alter your costs in order to line up with that figure.
Choosing something to save up for
To maximise your chances at saving, it is highly recommended you find something you wish to save for, whether thats a car, travel or new clothes. Most people find it easier to plan a goal around something they want and saving becomes easier when you have light at the end of the tunnel.
These goals tend to be more expenses and more of a long-term goal so that It can be both more rewarding and not short lived.
image taken from: https://di5fgdew4nptq.cloudfront.net/api2/media/images/a3b1b2a3-7d73-e711-80d3-a0369fdf7ce6
A Few helpful methods
There are a few helpful methods around that give students trying to save a little boost.
Goal saver bank accounts
- These provide customers with a reward for consistent saving, providing a better interest rate but at the cost of being able to take certain amounts out per month (no more than one withdraw)
Old fashion piggy banks
- Even something as basic as a piggy bank can help you save. Even putting $1/2 every few days in, will quickly add up.
Using a Parent as a 'Non-accessible bank account'
- Very much like a online bank account except tell them about your goals of saving. Then tell them they're not allowed to give the money back to you until the set goal has been reached. It helps when someone you know has your money + they'll provide you with help and encouragement along the way.
Putting all these techniques together should allow you to save and reach that financial goal. Budgeting and saving is hard for everyone but when you reach that end goal it always becomes worth it. Sacrificing some things for the sake of money becomes more of a short term loss for the long term gain.
Good Luck Saving!
Alex
Whether your a university student or not, budgeting is a important life skill to have. If your a university student reading this, you know the struggles when i comes to balancing work, University, social life and money. Sometimes the bank account has to take a hit in order for you to get that next assessment done or you end up working instead of getting that time with friends or family.
This is when a budget/plan comes in. It helps you manage your finances by planning ahead based on what you might spend or what you might be saving up for.
Documenting your expenses
The first step towards a budget is working out how much you earn vs how much you spend. This means displaying your set expenses (rent, phone bill, insurance etc) + what you might spend on average per month. Then offsetting that by working out how much you earn on average a month (fortnightly also is a great option).
This helps you calculate whether at the end of a typical month your making a profit or a loss
Image taken from: http://images.slideplayer.com/26/8693502/slides/slide_13.jpg
Make a Budget
The budgets job is to limit your spending or give you a set amount your allowed to spend each month/fortnight, based on your income.
e.g. If I'm spending $300 a month on my expenses + $500 a month on costs (food, events etc) and earning $900 then my net income a month is $100.
If i then decide i want to save $250 every month, i have to budget and ensure Im spending less on my costs per month. This might mean limiting the number of expensive meals I have or avoiding expensive events.
A budget allows you to set a goal that you then alter your costs in order to line up with that figure.
Choosing something to save up for
To maximise your chances at saving, it is highly recommended you find something you wish to save for, whether thats a car, travel or new clothes. Most people find it easier to plan a goal around something they want and saving becomes easier when you have light at the end of the tunnel.
These goals tend to be more expenses and more of a long-term goal so that It can be both more rewarding and not short lived.
A Few helpful methods
There are a few helpful methods around that give students trying to save a little boost.
Goal saver bank accounts
- These provide customers with a reward for consistent saving, providing a better interest rate but at the cost of being able to take certain amounts out per month (no more than one withdraw)
Old fashion piggy banks
- Even something as basic as a piggy bank can help you save. Even putting $1/2 every few days in, will quickly add up.
Using a Parent as a 'Non-accessible bank account'
- Very much like a online bank account except tell them about your goals of saving. Then tell them they're not allowed to give the money back to you until the set goal has been reached. It helps when someone you know has your money + they'll provide you with help and encouragement along the way.
Putting all these techniques together should allow you to save and reach that financial goal. Budgeting and saving is hard for everyone but when you reach that end goal it always becomes worth it. Sacrificing some things for the sake of money becomes more of a short term loss for the long term gain.
Good Luck Saving!
Alex
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