We have created a GCU Budget planner which you can download. Alternatively, you can create a budget on paper or in a notebook- this is a quick and easy method to get started. Microsoft Excel is also a handy tool to use, as it means it is easier to save and edit your budget.
Firstly, make a list of the money you have coming in each month. For example, this could include things such as your student loan, income from a part-time job, parental contribution, and any bursaries, sponsorships or scholarships you're eligible for. Remember to divide your total loan/bursary amount by twelve to cover the full calendar year.
Once you have compiled your list, add up all of your income amounts. You have now calculated your total monthly income
Essential outgoings: Things you have to pay regularly or can’t easily skip, such as rent, bills, travel, food etc. So firstly consider how much you spend (or need to keep aside) for your essential outgoings.
Flexible costs: Spending that is dependent on what you have left after the essentials (basically the more fun things) For example, socialising, hobbies and snacks on the go.
Not sure what your average monthly spend is? Check your bank statements, receipts, online purchases and your banking apps. You can also use estimates.
After you have listed all your monthly spending amounts, add them up to find your total monthly spending.
In order for your budget to be effective, your outgoings should be less than your ingoings. By creating a budget you’ll be able to easily see if you have enough money to cover your monthly expenses. If your budget reveals that your outgoings are too high you may have to re-evaluate your spending habits. ‘Read below to see how you can utilise your budget
Set a scheduled date to review your budget. The beginning or end of the month is a good time to check in, but you might want to do it more often if your finances change a lot.
It's really important to separate essential costs from flexible costs. Pay these essential costs first and ideally keep this money in separate accounts until the bills are due. Most bank accounts now let you have more than one savings account, which makes it easy to do this.
If you have any income left over after your essential costs, divide this between your flexible costs. But don’t just spend as you go. Set limits for each cost and try not to pay more than that each month
The cost of living may make budgeting more difficult, and you might find that your essential costs are more than your income. Start by reviewing what's on your necessity list. It's easy to see things we enjoy as essentials but try to evaluate if it really is an essential. For example, is the take-away coffee you get most mornings an essential or just something you enjoy? If you’re buying a £2.20 coffee twice a week even cutting it back to only once a week means in a year you’ll save over 114 pounds! So you don’t necessarily have to cut back completely on these things but you can easily save money by just doing it less often
Your first attempt at a budget doesn't have to be perfect. Just like with any other skill, getting better at it takes practice. It also helps to set a monetary goal as motivation. This could be about saving a certain amount or simply even just working towards a monthly balanced budget.
If you are worried about your budget or you’ve made amendments and your essential costs are still higher than your ingoings, then you can also make an appointment to speak to a Student Funding Advisor for advice.
