Whether you’re a first year student, a third year student or coming back to do a post-grad degree, money is important. Especially when it comes to saving money. And as we’re currently going through an economic crisis, it’s now more important than ever to save money wherever you can, and track just how you’re spending it.  

Budgeting is about making sure you don’t overspend, whether it’s an extra chocolate bar (some of them are £2.49 now!), a takeaway or alcohol, you should be sure you have the money in your budget to spend. An average student budget will often include things like; groceries, public transport, utilities and rent.  

There are various different methods of budgeting – here are some you might wish to use;  

The Zero Based budget  

This is where all expenses must be justified, staring from zero. It means every bit of income you earn will be divided into categories; and your income minus your expenses will equal zero. This way there’s no money going unaccounted for, it all has its purpose.  

Start by figuring out your budget, calculate your weekly or monthly income and your expenses. Then you can begin to divide up your money into categories. You can always adjust your budget as you go to fit around your income and expenses.  

Pay Yourself First budget 

This method prioritises savings – it allows you to save a portion of your income as it comes in. It requires setting up an automated transfer of an specific amount that can be take automatically from your income as it enters your account and placed into a savings account instead. Once that money has been set aside, you can begin budgeting what’s left to expenses that are essential, like food and rent, and non-essential, like an sausage roll from Greggs in the morning. It means the money is already saved.  

Envelope System 

This one is a little bit more traditional. Rather than transferring money through accounts, it is based on saving hard cash. It means putting your money into physical envelopes for expenses.  

Once you’ve figured out the amount of money you can spend on particular categories, be it groceries or non essentials, withdraw that amount from the bank into labelled envelopes. Use the cash from there for making purchases. This means once the envelope is empty, you can’t spend any more until the beginning of the next budget. Don’t forget to keep tracking and recording the amount your spending.  

50/30/20 budget  

This method involves allocating your monthly income into three separate categories; needs, wants and savings.  

Needs will take up 50% of your income – anything that is essential expenses; rent, utilites, taxes, food etc.  

Wants is allocated 30% of that income – this is for expenses that you don’t necessarily need, but enjoy, whether it’s a takeaway or drinks at a club, things that make your weeks more enjoyable.  

And Savings is the last 20% of your income for any financial goals you might, or simply just to save some money.  

Budgeting on your phone  

You can use your notes, Microsoft Excel or an actual app to budget. Firstly, you need to calculate and list your monthly income and expenses. You can divide up your monthly income however you would like, but it’s important to keep a record of this so you can track your spending and your progress. You can also find budget worksheets online, if you’re looking to do it yourself and need somewhere to start.  

Some apps you might like to use;  

• Emma 

• Spending Tracker 

• Plum 

• Goodbudget 

(Although these all have a free version, many budgeting apps will save the advanced/best features for the paid version, and you don’t really want to be budgeting your budget app.) 

Lastly, do not forget that there are ways of spending less; always keep an eye on student discounts, use them when and wherever you can. And rail or bus cards might be a good investment, if you’re travelling back and forth a lot. Try and make saving money where you can easier for yourself.  

You might be budgeting for yourself, or for your family; it’s an good way of understanding your finances in the current climate, and keeping on top of your spending as well as your course work.