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Budgeting And Starting To Think About Your Savings: A Student's Guide

By: Tamara Reed

It might seem inevitable that you will leave University with a gapping great whole where your bank balance used to be. But it doesn’t have to be that way.

Whilst thinking about how to not spend your money - as opposed to what fun you can have spending it - might not seem particularly appealing, once you realise how much more money you could have it will start to look rather more attractive.

Why is there always so much term left at the end of the money?

Budgeting, budgeting, budgeting. This really is one of the simplest ways to ensure your debts don't spiral out of control. Treat your accounts like a company, you are the sole director of Me plc and you get to pocket all the profits, so the more you make the better.

It probably won’t take long to work out your income, we all know how much money we receive each term- that’s the interesting part. Next write down a list of all your outgoings. Be honest, there is no point budgeting £50 a month on going out if you know you spend three times that amount. The more accurate you are the more effective your budget will be. You will be surprised to find how much money you fritter away.

Once you have set your budget work on a week by week basis. If you have budgeted spending £75 a week you might like to consider taking £75 out of the bank every week and only spending that cash. Having the money in your wallet (as opposed to in the bank account and paying by card) will make you much more aware of your money; how much you have and how much you are spending.

Working 9-5, what a way to make a living...

Working along side University life is a great way to make sure you don’t build up extortionate levels of debt, or even to avoid debt altogether. Once you have taken this step to improve your financial situation why not start to make your money work for you. If you save some of the money you earn each month into a tax efficient cash ISA you could build up a tidy little nest egg by the time you leave university. In the interim you will have a useful cash safety net.

Unexpected windfalls:

If you are lucky enough to receive an unexpected lump sum, from an inheritance for example, it is very tempting to blow it all on beer and chips. But it is possible to have all that and save.

Most of the times you will be better off by paying off your debt before you start saving. If you have received enough to pay off your debts and more, why not consider saving half and spending half?

An excellent starting point when trying to decide what to do with a lump sum is to work out how much risk you are willing to take with your money. It is important to remember that the value of an investment can go down as well as up, and so you could get back less than you invested. It is, therefore, always recommended that you consider establishing a good cash safety net before investing in the market.

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Article Source: http://www.webcitymarketing.com/articles

To read more about investing, and to learn more about ways of investing, such as ISAs, visit our website, where regularly updated content and downloadable guides are available. For more information, please visit at h-l.co.uk.

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