Budgeting—sounds boring, right? But wait! Before you turn the page, or skip to the next article, give me a minute to tell you why you should care.
Coming to university, or being in university, proposes a great financial challenge for a lot of students. Everyone should know a thing or two about budgeting, whether or not you think you need to. Budgeting may sound like a boring topic, but does it sound as boring as sitting at home alone on Saturday night while all your friends are out because you didn’t budget for entertainment? That’s what I thought. Now, listen here.
Everything in life is a balancing act, and it is hard to keep everything afloat all at once—no one is perfect; everyone will make mistakes here and there—what is important is that you learn from mistakes and move on. Money and credit is no different than any other life obstacle. You need to get a firm grasp on them—the sooner the better.
Let’s begin with the basics. When creating a budget you first need to decipher how much money you will have. To figure this out, take note of how much money you have in your bank account, how much money you will receive from OSAP, a bank loan (and keep in mind that these are loans, so you need to pay them back), or from your family. Once you have an idea of how much money you will have for each semester, start breaking it down into months. Depending on your circumstances, you may need less money for the month of December, because you may be going home for the winter break and will be able to save on groceries, etc.
Once you have broken your budget down into months, figure out what needs to be paid for each month. If you live in residence, all of your payments for housing are lumped into the payment you make for the university. If you live in a shared house, or apartment, you need to think of what your monthly expenses are. If you think that it is impossible to live off of whatever money you have left over after tuition, it is likely smart to get a part-time job, and work 10-to-12 hours a week.
Rent
On average, rent in a student house in Guelph can range from $350 to $550 a month, and is either inclusive, or not inclusive. If you are unfamiliar with this lingo, inclusive means that utilities are included. If possible, this is the way you want to go. Inclusive rent saves a lot of unnecessary stress with roommates, and allows budgeting to be simpler. It may seem like you are paying more for rent, but you are actually making it way easier on yourself because you pay a set amount each month and can budget in advance for it. Some landlords offer rent, hydro, gas, and internet in an all-inclusive price. If you find this and the house is in good shape, sign the lease—you will not regret it.
Utilities
Hydro is paid bi-monthly and is based on different rates depending on the time of useage. There are three different rates: on-peak, mid-peak, and off-peak. Try to use off-peak when doing things that use a lot of water or electricity. It helps a lot! Then, you will have a Union Gas bill; this bill comes monthly and you can set up a standard monthly rate, which makes it simpler to factor into your budget.
Internet, Cable, Phone
This bill comes every month as well. If you live in a house with more than two people, just pay for the unlimited Internet, especially if you have Netflix. It’s actually cheaper than paying for all those extra gigabytes you’ll be racking up.
Food
Are you an avid cook, or do you tend to eat out more than you’d like to share? You will save money if you cook your own meals. Find bargains at grocery stores, eat whole foods, and shop at the farmers market.
Debt repayment
Maybe you don’t have any debt yet—if not, bravo!—But a lot of us do. It sucks, I know. But it is manageable. Just make sure to at least make your minimum payments by the due date. Don’t get stuck leaving university with bad credit – it’s not worth it.
Emergency fund
Try to put at least $50 a month in a savings account, just in case something unexpected comes up that you need to tend to.
Entertainment
This last category is left to your discretion—just make sure you have enough money to cover all of you necessary expenses first. If you budget properly, and stick to it, you will have money set aside for things you really want to do each month.
If you take the time to make a proper budget and stick to it, you may be tight on money, like most university students are, but you won’t find yourself in many sticky situations. It is difficult to do, but monitor your spending and stick to your budget: you won’t regret it.