Olivia Taylor

How To Budget

Step 1: Work Out Your monthly Income

The first things you need to do is sort out how much money you have. This might be wages from a job or benefits.

If you are at University, you income may be made up from your maintenance loan, bursaries and any additional money given to you by your parents or part-time jobs. Read more about University Finance here

You can also factor if you have any savings. 

Step 2: Write out your initial budget

Estimate what your expenses are (on a monthly or termly costs).

Take into account: Rent, Bills (such as gas, council tax, electricity, water, water, mobile phone) and Groceries. You may also want to consider Broadband, TV Licence, Car Costs or other transportation costs. 

You should also include more non-essential costs involved in leisure. As well as things like clothes, new haircuts, and things like Amazon Prime, Disney+ and Netflix. 

Step 3: Calculate weekly Disposable Income

(Total Income – Essential Expenses) / 4 = amount of disposable income a week

If you have no or negative disposable income...

See if you can cut non-essential costs. For example, could you workout at home rather than at the gym; could you cook more and eat out less; or are there ways you can cut back on mobile phone bill. 

You could also see if you have ways to boost your income – could you take on a tutoring or part-time job? Could you reach out to your University for a hardship fund?

 

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