How to stay on track with your budget

Managing your finances in university can be quite a task. Student life is unpredictable and there are many costs that can seemingly pop up out of nowhere. I’ve found that creating a monthly budget for myself has been a great solution to this unpredictability and has allowed me to make informed decisions about my spending. Of course, it is not always perfect and I would be lying if I said that I have never fallen prey to a good ol’ online shop. Regardless, budgeting is definitely worth my time in my opinion and can be done in four easy steps.

via GIPHY

1. Determine income

In this step, I make an informed estimate about the amount of money that I will have coming in for the month. I think about how much money I will be making at work if I will be receiving any financial aid, and I even take birthday money into consideration. Every penny counts! One of the most important things to keep in mind during this stage is to estimate low. It is always better to think I will be making less and be pleasantly surprised than to not have enough.

via GIPHY

2. Determine expenses

This step has always been the hardest part for me because as a student, expenses can vary greatly from month to month. There is a lot to take into consideration and it can be very easy to overlook certain costs. For example, I tend to accurately guess how much money I am going to spend on textbooks and groceries but underestimate how much money I am going to spend on fun things like a dinner out with friends or Starbucks. I like to use my bank statements as a guide to help me to get a true representation of what my spending habits are like. Unlike step one, it is definitely important to estimate high to account for all possible costs.

via GIPHY

3. Budget

Now that all the research has been done, it is time to get to the nitty-gritty and actually budget. Luckily, this step is easier because it is all about comparing step one to step two. How much am I spending and how much am I making? During this step, I also reflect on the items I am spending my money on and think about what is a need and what is a want. This is helpful because if I find that I am spending more than I am making, it is easier for me to make decisions about where to cut down.

via GIPHY

4. Review regularly

As I mentioned before, students’ income and expenses can vary greatly throughout the year. For this reason, I try to review my budget every month to make sure that I am staying on top of things. Overall, it is important to recognize that everyone’s situation is different and although this process works for me, it may not be perfect for everyone. For more budgeting info and tips, check out Student Awards and Financial Aid’s online resources.