How to Create a Budget That Works

Making the most of your money helps you make the most of university.

Whether you’re living away from home for the first time or commuting, managing your finances can feel overwhelming - but it doesn’t have to be. With a little planning and the right approach, you can stay on top of your spending and reduce financial stress.

Creating a budget, and sticking to it, is an essential part of this journey. To help you get started, we’ve broken down the basics of budgeting into clear, easy-to-follow steps. By understanding your income, planning your expenses, and checking in regularly, you’ll gain control of your money - and your peace of mind.

1. Understanding Your Income

The first step is to begin by determining your total monthly income. This may include:

• Part-time job earnings
• Your student loans
• Allowances from family - if they’re able to help you, it’s helpful to agree in advance how much they’re offering to give you each week, month or term.
• Grants, bursaries, scholarships or sponsorships
• Any savings you’re planning to use at university

Knowing exactly how much you have to work with is the foundation of any effective budget.

2. Work out your expenses

Next, break down your expenses into two main categories:

Fixed Expenses:

• Rent
• Utilities such gas, electricity, water, broadband, TV license
• Tuition fees
• Insurance (if  you drive)
• Mobile phone bills
• Subscriptions (e.g., streaming services, gym membership).

Variable Expenses:

• Groceries
• Transportation
• Textbooks
• Entertainment
• Personal spending.

You can keep track of this by writing it down in a diary, using tracker apps or creating a spreadsheet and chart.

Understanding which expenses are essential and which are flexible will help you make informed decisions.

Money tracker

3. Prioritise Essentials

Your needs should always come before your wants. Allocate funds to cover all essential areas of your budget such as rent, living costs, food costs and additional course costs.

In your budget plan, work out how much money you'll have left and then use that to set yourself a budget for non-essential items. Allocate money towards savings, personal goals or for social outings, hobbies, and other non-essential purchases.

By sticking to your budget for non-essential items, you'll prevent yourself using money you could save for your future to buy clothes you might not need.

4. Set Financial Goals

Budgeting isn’t just about covering expenses — it’s about building financial strength.

Consider setting short-term and long-term financial goals, such as:

• Saving for a study-abroad program
• Building an emergency fund
• Paying off student loans faster
• Having goals in mind will help you stay motivated and disciplined.

5. Track Your Spending

Even the most meticulously planned budget is ineffective without regular monitoring. Check your mobile banking apps to see the breakdown of you spend, use budgeting apps, spreadsheets, or even a simple notebook to track your daily expenses. Review your spending weekly to ensure you’re staying on track.

Spend and Save jars

6. Adapt and Refine

Life at university can be unpredictable. Your budget should be flexible enough to accommodate changes — whether it’s an unexpected textbook purchase or a spontaneous weekend trip. Revisit your budget monthly to adjust as needed.

7. Build a Safety Net

A portion of your budget should be dedicated to savings. Aim to set aside at least 10% of your income for emergencies or future. Having a safety net will prevent you from falling into debt when the unexpected happens.

Budgeting isn’t about restricting yourself — it’s about empowering yourself. By taking control of your finances now, you’re not only ensuring a smoother, less stressful university experience but also building habits that will benefit you for a lifetime.

Start today. Your future self will thank you.