University should be about studying and having fun, not worrying about how you’re going to eat or pay bills. So, it’s really important to think about how you’re going to fund life at University before you run out of money.
This is where budgeting comes in.
Student funding awards are often paid in lump sums. Without a budget, it’s easy to forget that this money has to last the term or even the whole academic year. Once it’s gone… it’s gone!
What will my budget show?
Done correctly, your budget should indicate:
- Whether you are spending more money than you have (overspending)
- What you can afford to spend over the year, month, week
Overspending is essentially living outside your means. It is extremely easy to do when you haven’t created an accurate budget. Making a habit of overspending can cause you to run out of money and often accrue debts.
Debt is extremely serious and can affect your life in so many ways. It can cause and exacerbate mental and physical health problems, negatively affect your credit ratings, and affect your future lifestyle.
Sticking to a budget can help you get out of debt. Budgeting helps you to prioritise your debts and work out a repayment schedule you can actually afford.
Review your budget
Your budget may need to change to fit your lifestyle. If you find you are spending too much, or do not have enough money coming in, it’s time to review your budget.