Making that first loan last

Managing your finances can be challenging if you're not used to handling your own money. When that first loan drops, it can be tempting to spend spend spend... but we're here to tell you, maybe that isn't the best idea (shock). If you can learn the power of budgeting, you'll be able to save money for the fun things throughout the year, while making sure you've always got the essentials (rent, food, travel, etc) covered.  Here are some practical budgeting tips to help you make the most of your money and avoid financial stress during uni.

1. Create a budget

Start by listing your income sources (e.g. student loans, part-time job, parental support, etc), your regular expenses (e.g. rent, food, bills, travel) and how much you want to save per month. Then you can allocate specific amounts for each category and try to stick to these limits. There are budgeting apps (most banking apps now have this functionality) you can use to help you do this, but a simple approach of pen and paper works fine too.

2. Prioritise essential expenses

Rent, bills and groceries will be your top priorities. Make sure you have enough money set aside each month for each. You can plan your meals and shop wisely to keep your food costs in check, but it's okay to treat yourself now and again (always budget for fun stuff too).

3. Cook at home

Preparing meals at home is usually cheaper and healthier than eating out. Plan your meals for the week and cook in batches to save time and money. You will need to invest in tupperware/a way of storing meals so they will stay fresh for the rest of the week.

4. Use student discounts

Your student ID is one of your greatest weapons against the cost of living... use it! You will find discounts on a wide range of products and services, including food, clothing, travel, and entertainment. So we'd recommend taking your student ID with you at all times in case you need to prove you're at uni. You can also sign up for Unidays and Student Beans to access additional student discounts online and in-store.

5. Avoid unnecessary debt

Be cautious with any credit cards and personal loans. Only use them if absolutely necessary and always pay off your balance in full to avoid interest charges. Many student bank accounts offer interest-free overdrafts, which sounds great but can easily get out of hand. Only use your overdraft as a safety net, but don’t rely on it for regular spending.

6. Find part-time work

Look for part-time jobs that fit around your studies if you feel you need extra income your loan won't provide. On-campus jobs, such as working in the library or student union, are often flexible and understanding of your academic commitments. You could also consider freelance work in your field of study to gain relevant experience and earn extra money at the same time.

7. Use public transport or walk

Take advantage of student travel cards (like the Trainline railcard) and discounts on buses and trains. Southampton for the most part is a walkable city and even better for cycling. These options can be a cost-effective and healthy way to get around so it's always worth considering these options first.

8. Manage your subscriptions

Wondering where that £10 just magically went out of your account? It's usually a case of 'subscribe and forget'. Check your bank statements for regular payments like subscriptions and memberships and cancel any that you don’t use regularly. Services change prices all the time, sometimes for the better so keep an eye out for any price fluctuations and act accordingly. 

9. Build a "rainy day" fund

 Try to put a small amount of money aside each month into a savings account. This can help cover unexpected expenses without disrupting your budget. You can't see into the future so it's best to prepare for certain things costing more money. Or if your mates out of the blue plan a weekend away, you'll want to make sure you can book on without any fuss!

By creating a budget, prioritising your spending, and taking advantage of student discounts, you can make your money go further and have more to spend on spontaneous activities.