Creating a budget can help you to see what's coming in and going out, as well as whether you'll have any money left over each month. This is especially useful when you encounter unexpected expenses - which will inevitably happen - or a decrease in income. Budgeting ensures that you do not overextend yourself and can help you in balancing your spending.
There are loads of great budgeting tools out there, here is just a few to get you started…
Advice and tips
Add up your monthly income
arrow_forward
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 12 to cover the full calendar year.
Once you've compiled your list, add up all of your income amounts. You have now calculated your total monthly income
Add up your average monthly spending
arrow_forward
Essential outgoings Things you have to pay regularly or can’t easily skip, such as rent, bills, travel, food and so on. So firstly consider how much you spend or need to keep aside for your essential outgoings.
Flexible costs Spending that's dependent on what you have left after the essentials - basically, the more fun things - such as socialising, hobbies and snacks on the go.
If you're 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've listed all your monthly spending amounts, add them up to find your total monthly spending.
Balance your budget
arrow_forward
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 use your budget
Using your budget
arrow_forward
Schedule regular budget reviews, ideally at the start or end of the month, or more often if your finances change. Prioritise essential costs and keep this money separate until bills are due—many banks offer multiple savings accounts, or various pots within a single account. After covering essentials, allocate leftover income to flexible costs, setting spending limits to stay on track. If essential costs exceed your income, reassess what’s truly necessary. Small changes, like reducing takeaways or non-essentials, can add up. Budgeting improves with practice, and setting financial goals can keep you motivated. If you're struggling, consider booking one of GCU's Money Management appointments for guidance.
