Managing Money: The Ultimate Student Guide

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Student:Craft - Managing Money
"I want to be successful, and I want to learn how."

NB: If there is information thats helped you, I've missed, or something you would like to see or learn about leave me a comment please or send me an email. I'll do some research and add it in! =)


Introduction
As a student just come to the end of my 2nd year, I am starting to feel the strain. Maintenance loan barely covers accommodation...food seems to cost a LOT more than you imagined, Utility Bills are an unforeseen nightmare and that sale at TopShop / PC World / Takeaway just eats into your overdraft.

Although I am aware of what it is like to work in the 'real world', and a very independent man...I still do not feel ready for what life is like, and what it takes to be successful.

I want to make a blog to research, learn and share anything I find useful to keep me on track (I hope it helps you as much as it helps me)...and unlike similar blogs I have seen, I want to get straight to the point! We don't get taught anything like this at school! So thats enough of the pretext, first subject this week is:

FINANCES
I've split this next bit into 3 steps you can use immediately to make a difference:


CONTENTS
1) Student Loan: Working with what you have
2) Student Expenses: Food, Food, Drink, Drink!
3) Student Income: Part Time / Online / 

1) Student Loan: Working with what you have

Now I'm sure you've all heard that managing your money and not going into debt is as simple as not spending more than you earn. The problem with this for a majority of students is all you have 'coming in' is your periodic 3 month maintenance loan.


A large sum suddenly in your account is something most students are NOT used to, (along with that tasty overdraft)...and there are a few things that can be done to control your outgoings. 

• Find out where you are now.

We have been blessed with online banking and if your not using it, you should be. I'm always questioning my friends as to why they never know how much money is in their bank, yet they freely spend off their card when shopping. 
If you don't know how much money you have, then how can know how much you have to spend?!...So find out where you are now, how much money you have available, what's regularly going in and out, and see what you're left with. =)

• Make a record of everything you spend your money on for one week! (Added 11/6/2011)

This is a great exercise, and something you're bound to find incredibly useful. Take a note of everything you spend over 7 days and analyse it at the end to find out exactly where the bulk of your money is going. Is it on coffee in the morning? Magazines? McDonalds?

• Budgeting what's left over

I know you've probably heard it countless times, but you are going to HAVE to make a budget to get a good overview of where your money can go.
Once you've made your shiny, colourful and accurate spreadsheet, the hard part then comes when sticking to it! - Im not going to lie, this isn't easy, but nether-less a skill that must be learned!


There are countless resources available online for you to do this, but find the Student:Craft Version Below available for download for your convenience:

[Download Coming Soon]

When creating your budget you need to ensure you are being realistic with yourself. If you enter false data at this point then the rest of the plan will fail, and this guide wont help you at all. (Thats not what we want now is it?)

We all seem to remember the usual categories like food, drink, socialising and car...but in order to make an efficient tool to manage your finances, you have got to be more specific!

Food...is that the weekly / monthly shop?, The weekly / monthly takeaways?, The weekly / monthly lunch?

Same with car...does that include your insurance, petrol, general repairs?

Get this bit right, and reap the rewards.

2) Student Expenses: Food, Food, Drink, Drink!

I've heard and read a lot of stuff about living within your means. Some students can afford to live off £100 a week, whereas some just £10. The message that I would like to get across however is one iterated time and time again by my father:

"You're a student, live like one!"

Now, this took me a while to get to grips with, but is one of the things that i constantly reiterate to myself. 
Even though you may be able to afford (or cover the costs) of everything that you want, right now WHILE YOU ARE A STUDENT, YOU NEED TO LIVE LIKE ONE.

Without a job, in my first year i set aside £100 a week. (I'd been working for the past year in preparation for uni) In year 2, WITH a job, i cut that down to just £30...and still ate and socialised healthily. Don't get me wrong, if I'm honest, I didn't enjoy saving up weekly for a new 360 game...but the principles behind having to SAVE taught me a valuable lesson for life.


All the money I saved through unnecessary expenses unfortunately went on a new house deposit and current Utility Bills...but at least I had that money available rather than having to ask family or request a larger overdraft.


How I stuck to my new weekly limit:

• Take out the cash at the beginning of the week.

If you set aside £30 a week, then take it out of an ATM on monday morning. Physical sterling has lot more value than a plastic card. You respect those pound coins and those 20p's a LOT more when 'its all you have' in your wallet.

• Look above and below at the supermarket.

This is a big one, and something an old friend used to tell me constantly. You don't always need to buy branded food. Basic brands situated out of eye level are just as good, and up to 80% cheaper than their costly equivalents. Still treat yourself, but be reasonable about it.


Also, take a shopping list with you. I want to talk about this more in future posts, but get in and get out with a pre-written shopping list. You know exactly what you need and its harder to get distracted when not casually browsing the shelves.

• Play a Game (Added 9/6/2011)

Well, this might sound a little silly, but it worked for me. I actually found it pretty fun to see how little money I could survive on for one week. My record was: £2.50! (That even included a night out!)
It's also good to know, if the worst came to the worst,that you CAN survive on less than £5 a week =)

• Cook for 2 (or more) (Added 9/6/2011)

Buying and cooking for more than one is a LOT cheaper than trying to feed yourself. Prepare and eat breakfast and dinner with a few flat mates. Its not only sociable, but means your going to eat well 2/3 times a day.
If your interested in a shopping list, I can sort one out for you. =)

• Nectar Points and Loyalty Cards (Added 9/6/2011)

Don't confuse these with store cards, but loyalty schemes are great for saving money. If you have a Tesco club card for example, they send you vouchers every month with discounts and great offers!

• Don't Impulse Buy!

My worse nightmare, and the bane of my life is impulse buying. If I want something, I want it NOW...and this is something I and a lot people, (let alone students) need to develop a resistance to. Go away, and think about it for a few days, even overnight is better than buying it straight away. 
I even started NOT taking out my card as it was the only way I could stop myself...(Even if its just a takeaway on the way home it all adds up)

• Shop Online for Bigger Purchases (Added 9/6/2011)

Following on from the previous point, if you find a game for example or a set of shoes you like in-store...check online for additional discounts. You can often get a better deal for everything with a little searching around. 


Price comparison websites such as moneysupermarket.com and kelkoo.co.uk are perfect for this!
It might take a little longer, but comon, you can save some cash! 

• Bus fare and sports drinks Add UP! =O (Added 9/6/2011)

You don't realise it, but all the small purchases add up, and they add up fast! 
I lived within 25mins walk of uni in both my 1st and 2nd years, yet I would frequently get the bus into town. 
Now I'm not telling you to walk everyday...but I limited myself to getting public transport to 3 times a week (one way only), AND I HAD to get the £1 Bus, (came every 20mins).


This saved me almost £10 -£15 a week! Alternatively, buy a monthly / termly bus ticket and incorporate it into your budget.
Walking in or home with a friend also makes it a lot easier. I'm a very active person, but sometimes it's just boring alone.


Its the same with all those drinks and sandwiches you buy everyday for lunch...add it up, and your spending a lot more than you think.


eg. I go to the gym 3 times a week and used to buy a new drink everytime! Just fill up your bottle with squash =)

3) Student Income: Part Time / Online / 



I want to make a more in depth post about this at some point, (so I'm going to keep this brief for now) but being able to generate income alongside your student loan maybe something you are interested in. If you are anything like me, and motivated by money then I would like to share a few things with you that could provide a little extra cash to play around with:


1) Get a part time job.
2) Sell what you don't need online
3) Bake cookies and sell them outside your student Union. =)


A lot of these are all 'touch and go', but as I said, its just some basics to get you thinking.


ps. The next blog post I'm working on now entitled: 


Student Income: 4 Ways to Bring in Something Extra!


will be out ON MONDAY 13th, and contain 4 different methods to the ones above. Stay tuned. =)

Interesting article:

"More students were "forced" to work during term time "just so they can survive university", the TUC and the National Union of Students have warned." 

http://news.bbc.co.uk/2/hi/uk_news/education/5302082.stm