It's a good idea to plan a budget - and an even better one to stick to it. Make sure your plan is realistic – allowing a reasonable amount for going out as well as essentials like food and accommodation. A simple way to budget is to take your total income over a set period of time and divide by the relevant number of weeks or months. So, for example, if you want to work out a monthly budget for the whole year, you need to divide your expected annual income by 12 to give you your monthly income (€0000/12 = €000). Don't build in income assumptions that may not come off.
Once you've established your monthly income, you need to set out your spending. Start with fixed and essential outgoings – like rent, bills and travel costs. Then list all your other, less fixed outgoings – food, clothes, entertainment and so on. Add up the outgoings (B) and take them away from your total income (A).
If the balance is positive, you've established a budget that you can live within. But if B is greater, then you then have a negative budget which means one of two things if you want to avoid running into more debt:
- You need to cut back on the non-essentials to make the budget balance
- You need to find a way to increase your income.
For many students balancing their budget causes as much stress as sitting finals. If you think you'll be heading towards a significant budget deficit before your next income comes through, don't ignore it. Talk to your bank, student union rep or parents.
Also ensure you get your hands on a Flip Save to save you €100’s during the year.
For more information and advice please visit:
