Life as a student is great – learning new things, meeting new people, and enjoying a newfound independence. But that independence can also mean you’re managing an (often) small income and having to make money stretch further than you probably have before.
Whether you’re living off government support, a scholarship, the ‘Bank of Mum and Dad’, or working a part-time job (or two) to get by, there are some simple but effective things you can do so you don’t have to live on two-minute noodles. Unless you want to, of course!
1. Calculate your “bare minimum” budget
First up, identify your essential monthly expenses that need to be covered. These expenses include rent, food, bills – the things you need to survive student life each month. Once you know what that amount is, you need to use your smallest or most reliable income (e.g., part-time job wages) to set your main budget.
We’ve got a handy budgeting app that can help you with the maths. Check it out.
2. Prioritise essentials
Until you’re in a rhythm with living on a limited budget, it’s a good idea to limit non-essential spending. Focus on stretching your money further and keeping on top of your expenses. After all, you don’t need the new-season jersey for your favourite sports team to win games.
3. Avoid debt
It can be very easy to rely on credit when funds are tight, but credit cards and overdrafts can lead to serious future pain. Using ‘Buy Now, Pay Later’ may seem like a good alternative, but think again. Late fees and other charges can quickly add up, just like credit card interest.
By sticking to your budget and living within your means you can avoid unnecessary borrowing.
4. Create an emergency buffer
It may seem impossible to start with, but try to build up a small savings buffer for the months when your income falls short (like during exam season). If your budget is a good one, you should be able to identify a few dollars each week to put to one side. Remember, even saving just $10 a week will help over time.
Looking for a savings account to help keep your emergency buffer safe? Check out our SwiftSaver account that pays bonus interest if you deposit at least $10 per month and make no withdrawals.
5. Don’t waste windfalls
When you get extra money like a tax refund, tips from work or birthday cash, prioritise saving it or using it to pay off debt. We know it sounds boring to not hit ‘add-to-cart’ on your online wish list to treat yourself when you have some extra cash, but you can revisit that when you’re sure you have surplus funds to play with.
Student life is a lot easier when you don’t have to worry about your finances on top of your coursework deadlines. By consistently tracking your spending (even in small amounts) you can prevent surprises and build strong financial habits for the future.
Budget like a boss with mymo
mymo is your personal banking buddy. It’s an app you can use with your P&N Bank accounts to help you budget like a boss.
Link up all your bank accounts to see all your income and expenses at a glance, track your spending, and set up bill reminders. Budget smarter, save more, and waste less.
Important information
Banking and Credit products issued by Police & Nurses Limited (P&N Bank).
Any advice does not take into account your objectives, financial situation or needs. Read the relevant terms and conditions, before downloading apps or acquiring any product, in considering and deciding whether it is right for you. The Target Market Determinations (TMDs) are available on our website or upon request.