Proper money management is essential for any university student. At LIV Student, we understand the importance of establishing a clear and realistic budget that allows you to cover your basic needs and enjoy your university experience to the fullest. That’s why we’ll tell you how to create and maintain a budget for university students.

Assess your fixed income and expenses

Before creating a budget, it is crucial to know your regular income and fixed monthly expenses in detail. This means taking into account all income you receive, whether from part-time jobs, scholarships, parental support or other sources.

In addition, identify your fixed expenses, such as the monthly cost of your dorm, university-related expenses (such as tuition, books and supplies), transportation, food and any other recurring expenses you have. By having a complete picture of your fixed income and expenses, you will be able to determine how much money you have available for other expenses and savings.

Prioritise your essential expenses

Once you have assessed your fixed income and expenses, it is essential to prioritise your essential expenses in your budget. These essential expenses are those necessary to cover your basic needs and maintain an adequate lifestyle while studying.

This includes allocating a significant portion of your income to cover things such as:

• Your food
• Transport costs to get to university and other necessary locations
• Study materials and other academic expenses

Prioritising these expenses will allow you to ensure that your basic needs are met before spending money on other things.

Set financial goals

Set concrete financial goals that will motivate you to manage your money responsibly. These goals can be short-term, such as saving for a trip or buying something you want, or long-term, such as building an emergency fund or paying for college tuition. By having clear financial goals, you will be able to prioritise your spending and make more informed financial decisions.

Create a monthly budget

Creating a detailed monthly budget involves dividing your income into different spending categories to ensure you are allocating your money appropriately. Create categories such as housing, food, transportation, entertainment, savings and other specific expenses that apply to your situation.

Keep track of your actual expenses each month to compare them to your planned budget and adjust where necessary. Use tools such as budgeting applications or spreadsheets to keep accurate track of your finances.

Keep track of your spending

Expenses such as outings with friends, entertainment and non-essential purchases can quickly add up and affect your budget. While it’s important to enjoy social and recreational activities, it’s also crucial to monitor these expenses and find ways to reduce or manage them efficiently.

Consider setting a monthly limit for these types of expenses and look for inexpensive alternatives to enjoy your free time without compromising your budget.

Review and adjust your budget regularly

An effective budget is not rigid, but should be reviewed and adjusted regularly. Do monthly reviews to see how you are doing, identify where you can improve and make changes if necessary. If you find that you are spending more than planned on something, look for ways to save in other areas or move money to what really matters. This way you can keep control of your money and reach your long-term goals.

Plan your purchases in advance

Avoid impulse purchases and plan your shopping in advance. Make a list of what you need and set a budget for each shopping category, such as clothing, food and entertainment. Shop around and look for bargains before you shop to get the best prices and save money.

Create an emergency fund

Build into your budget the creation of an emergency fund. This fund should be enough to cover at least three months of basic expenses in case of unexpected situations such as a job loss or medical emergency. Earmark a portion of your monthly income for this fund and avoid using it for non-urgent expenses.

Use coupons and discounts

Make the most of coupons and discounts available to students at various establishments. Many shops, restaurants and services offer special discounts for students, which will allow you to save money on your shopping and daily activities.

Share expenses with roommates

If you share your accommodation with others, consider sharing some expenses, such as groceries and certain shared items like napkins, toilet paper and cleaning supplies. Establish clear and fair cost-sharing arrangements and make sure you keep your side of the bargain.

With these financial tips and practices, you will be better prepared to manage your money as a university student, establish healthy financial habits and achieve your financial goals – all while enjoying your life as a student in Porto with peace of mind and good planning.