How to look after your expenses as a student
With the cost of living being at an all-time high, we know that the bank account of a student can be rather dull to look at. Being a student is tough enough as it is, with big life changes, such as moving somewhere new, studying all hours of the week, having to make new friends and then on top of that, manage your finances - which for many of you will be the first time.
Managing your finances can be daunting, as being a student means you have little time to work part-time (if at all), meaning you need to scrimp and save to live off your student loan to cover living expenses; rent, bills, food shops, phone bills, wifi (the list goes on!) - and that doesn’t even include the pot of money for things you ACTUALLY want to buy!
So, we’ve dedicated a whole blog post to share all the best tips and tricks to make your pennies go as far as possible whilst living as a student in London.
Budgeting
First things first when it comes to managing your money - budgeting. This is essentially working out what funds you have available to spend, which will determine the price point you can afford for things like rent and other essential living expenses (NOT your takeaway habit). Once you’ve determined these things, you can subtract your outgoing living costs and the money remaining is what you have available to spend on whatever you like!
There are so many budgeting templates out there, like this one, that are a really great tool for helping you to save. Input all your incoming money - such as student loan, scholarship/ bursary money, any money from part-time work, or savings (if any). Then input all your regular outgoings - rent, bills, monthly food costs, transport, course materials (textbooks are usually expensive!).
Finally, subtract your outgoings from incomings and you will know what your monthly/ weekly disposable cash flow will be - whether you want to spend this on takeaways, clothes, gym memberships (when they reopen), subscriptions like Netflix or any other hobbies, you know you won’t be going over budget if you stick to the above.
Cooking and meal planning
We know UberEats and Dilveroo make it SO easy to eat whatever you want every night, but it adds up quickly and is an easy way to go over your budget, fast! So, get yourself well acquainted with the kitchen.. It’s going to become your best friend!
Cooking for yourself or with flatmates at home is usually the most cost-effective way of eating as a student. You can plan your meals for the week so you just buy the ingredients that you actually need and don’t end up wasting things. If you love a spreadsheet as much as we do, they can be a useful tool for planning your weeks out. There are lots of books and websites out there that offer recipes for under £5 or cheap and healthy meal options - we like this book by MOB Kitchen.
You can then do things like meal prep for the week, and even cook in batches - which is a great way to make your ingredients go further and you can even freeze meals, meaning you will have a lovely home-cooked meal to look forward to when you’re not in the mood to cook!
The next step is choosing a supermarket to shop at, which is important to think about when meal planning. Is your closest store a more expensive option, such as Waitrose? Doing your weekly shop somewhere like this might feel luxurious (and easier, if it’s just round the corner!) but the food bills will tott up very quickly. You’re better off going slightly further afield to find a cheaper option, such as Aldi, where you get a lot more for your money. We know that Aldi and Lidl don’t always have your favourite brands, like Marmite or Lurpack, BUT they can be great for getting the essentials, such as fruit, vegetables and cupboard staples like pasta, and then you can always pop somewhere else to pick up those favourites - if your budget allows!
If you don’t fancy cooking but can’t afford that curry from Deliveroo, why not check out the TooGoodToGo app? They are helping shops, cafes and restaurants to reduce food waste around the city by offering food at reduced prices when the item doesn’t look like it will sell before the sell-by date.
Buying second hand
Buying new clothes is an easy place to spend all of your money each month, but it doesn’t have to be. Using sites like Depop, or shopping from charity shops (when they open again) or eBay is a great way to spruce up your wardrobe without spending a fortune. It’s also better for the environment as you aren’t buying directly from fast-fashion outlets. If your budget is really tight, why not even swap clothes with friends? It means your wardrobe will never get boring!
Don’t forget that you can also sell your old clothes to make some extra cash. Depop & eBay are a great place to start and it’s so easy - you won’t miss those old jumpers at the bottom of your wardrobe, we promise.
If you do need to buy something new, remember that many places offer a student discount, through Unidays or Student Beans, and you can sometimes get the item or service for half the price!
Be smart with your purchases
Try to be mindful when you are spending money and think about your purchase. Do you really need to buy a takeaway coffee every day? You can make a coffee just as easily at home. Monzo is a great banking app where you can set aside saving pots for this kind of thing and also categorise your spending for a full overview of where your pennies go. It helped us realise all of our money was going on coffee...
(Although, as self-confessed coffee addicts ourselves - if you REALLY need those takeaway coffees, places like Pret and Leon are now doing unlimited coffee on a subscription basis, so if it fits your budget check them out!)
Try to think about transport costs too - do you really need to jump on the tube for just one stop? Transport around London is great and means you can get all over the city very easily (during times when it’s ok to do so), but the tube can be expensive! Why not walk or cycle instead? A healthier swap & you’ll get to see more of London.
Be aware of pay later schemes
Be aware of sites like Klarna, which let you enter into ‘pay later schemes’ - they can be great if you’re waiting for your student loan to drop, but can be very risky if you forget or can’t pay for the item when the time comes, as sites like these have high-interest rates and can be an easy way to get into debt.
So there you have it, our top tips for making your pennies stretch as a student - we hope it helps!
