How to Budget (so that you’re not broke)…

A quintessential part of student life and growing up responsibly involves being able to live off a budget.  This becomes even more vital if you decide to go into business.  While some people view it as unnecessary and tedious, the simple fact is that most of us are not in a position to judge its usefulness because we’ve never done it before.  So how do we create a budget?

Firstly, work out what your income is.  This should not be exaggerated – remember that all the details are to be accurate to prevent you from running out of money at the end of the month.  Examples of income could be pocket money (money from home), a bursary or scholarship allowance, part-time work wages (waitressing, promoting etc.), interest on savings, extra-jobs income (tutoring, gardening etc.) and the like.

Secondly, work out expenses.  This could be based on previous months’ expenditure or on projected (expected) costs.  Keep in mind that this, if anything, should be over-exaggerated.  You want to make sure that you can pay for the most important costs first.  Examples of fixed expenses are rent, res fees, tutoring fees, savings account debit orders, tithes and the equivalents.

Examples of non-fixed costs are transport costs, food, petrol, water and electricity and rates.

When these have been allocated, you can clearly see the difference you will be making (or losing) each month.  Use this figure as an estimate on what your spending ceiling (upper limit) is for each month.  Of course, the amount can fluctuate within the year, but try to regulate your spending to accommodate this.  We do not assume you are a tax payer as a student.

This is an example of a budget:

Get clever and learn how to budget.  It’s a vital skill that you’re expected to master.

BS