Planning
There are loads of ways you can budget your money so that you can either save up for something you really want or just to make sure you have enough money to get through each term.
The first thing you need to do to budget your money is to create a cash flow forecast. I think the best programme to use is Excel because the features make it really easy to create the base for the cash flow forecast. However, if you want to spend money on buying a money budgeting tool, I have used Quicken before which is really good, however I think it can be quite expensive, but it is so useful, and you can carry on using it throughout your adult life just to keep track of your finances.
If you don't understand what I write it isn't a problem, I will add pictures for each section to show you what it should look like.
To create a cash flow forecast, you need to create columns for the amount of weeks you're at uni for during one term, but remember to leave a column at the beginning to write the rows in. Then down the length of the spreadsheet you need to write in the opening balance (this is the amount of money you have already or as a start up that you can spend). Next, you write in the Cash Inflows, this is all the money that you are likely to get in during a term, for example I get money each month from my grandmother; and each term I get money from student finance. You will also need a "TOTAL INFLOWS/RECEIPTS" because this will make it easier later when creating the formulas.
It should look like mine above but with your own weeks and your own captions of the money you receive each term. This is for my second term, and I used the last week of December because I have spent money using my uni account in the last week of the year. I usually create weeks for over the holidays because I still have inflows and expenditure which means I keep better track of my money, which in turn makes me spend less.
The next thing you need to do is create the Outflows section, this will allow you to keep track of how much money you spend each week. Knowing how much you spend in an average week will really make you think about how much you're spending. The expenditure section can include things like rent, any money you spend on shopping. I like to split up grocery shopping which includes all food (e.g. takeaway) and shopping for other things like clothes and make-up. I have a section for money that I owe my parents because when I go home, I get them to buy things on their credit card for me and I pay them back, as I'm sure you guys do too. Any money that goes out of your account within a term for anything will go in this section. Again, you will need a "TOTAL OUTFLOWS/EXPENDITURES" row as this will make it easier when creating the formulas.
The next thing you have to do, which is the final thing before creating the formulas, is to create rows for the "NET FLOW and the "CLOSING BALANCE".
As you can see creating the table is really simple. The formulas are a little harder, but if you have a knowledge in Excel then you'll be fine.
To start with, in the first week for "TOTAL INFLOWS/RECEIPTS" row type in an = sign and click on the first inflow you have, which will occur in the first week, put a + sign and then keep doing that for each of the inflows in that week. You should have something that looks like this:
Press the "ENTER" key of your keyboard and if you have a blank spreadsheet like I do here, then it should display £0.00 in the "TOTAL INFLOWS/RECEIPTS" Week 1 box. You wont have to repeat this for the whole term because if you click in box and then move you mouse to the bottom right hand side of the box a little black + should appear. Click on this and drag it along the row until the end of the term and this will create formulas for each week.
You will need to repeat the stage above for the "TOTAL OUTFLOWS/EXPENDITURE" row. Use all of the expenditure rows for week 1. Start off with an = sign and then click on the first expenditure for week 1 + second expenditure and so on. It should look something like this:
I like to keep a few rows free just in case there is something else I can put in there, but I add these in to the formula because it is a lot easier to put them in first of all in stead of having to sort it out later.
The next thing you have to do is work out the "NET FLOW". All this means is that you subtract the expenditure from the inflows for the week. It should look like this, but I have hidden the rows in between the two sections.
This will give you the amount of money you spent more or less than you received in the week. This figure will usually be in the minus because you probably won't get money in every week but you will more than likely spend money every week. Again, you don't need to do this for every single week, just click on Week 1's Net Flow box, then move the mouse to the bottom right hand corner until you get a black + sign, click and drag until the end of the term.
The final stage for creating formulas is to create the ending balance. To do this you just need to write an = sign, click on the "OPENING BALANCE" and the write a + sign and click on the "NET FLOW". This will give you the amount of money you have left at the end of the week from your opening balance after getting money in and spending money that week. Click on Week 1's Closing Balance box, move your mouse to the bottom right corner until you get a black + sign, click and drag until the end of the term, this will copy the formula for each week into the rest of the fields.
The opening balance for the weeks after week 1 will be the closing balance from the week before. For example if you have a closing balance at the end of Week 1 of £1,472.46 then the opening balance for week 2 would be £1,472.46. To get this click in the Opening balance box for week 2, write in an = sign, and then click in the closing balance of week 1. This can then be transferred into the other opening balance fields until the end of term but moving the mouse to the bottom right corner of the field, clicking and dragging until the end of term.
To make it so that the fields are in the format of currency, highlight the fields that don't contain the headings for the rows and columns. Right click and and click on Format Cells. It will bring up a dialog box, and in the NUMBER tab, click on currency. You want 2 decimal places, in the drop down menu for SYMBOL click on the £ sign, and then you want to click on the -£1,234.10 in the NEGATIVE NUMBERS box. Click OK and you can start filling out your cash flow forecast.
If you know when and how much you money will go in and out of your accounts then if you add it in in advance then you will know how much you have left over after all your bills and rent is paid. This will allow you to work out how much money you can spend each week without going into your overdraft.
I have only ever been in my overdraft once, and this was because I owed my parents money for rent and a deposit before my student finance had been given to me in my first year. Since then, I haven't needed to use my overdraft because I budget so I don't go into it.
I know this has been a very long post today but it is really worth it. Budgeting your money will be important for your final year (which I know it seems ages off, but my first year flew by and now I'm in the last term of my second year). It has gone so quickly that I can't believe I only have a year and a bit left until I graduate. It will be the same for you, you just have to make sure you make the most of it.
If you have any ideas that you want to share with other people, then either leave a comment or email me (sandra.spencelayh.92@gmail.com) and I'll post it up for you.
