Blog: Budget like a pro

Halloween has already passed but do you still have nightmares whenever looking into your bank account? Don’t worry, you’re not alone. As a student, rent, travel, and daily essentials can consume a large amount of money if one is not mindful. To avoid this financial turbulence, the 50/30/20 budgeting method can save the day. 

What is the 50/30/20 rule? 

The 50/30/20 rule divides your monthly income into three simple categories: 

• 50% for needs (e.g. rent, bills, groceries, transportation) 

• 30% for wants (e.g. nights out, takeaways, Netflix subscription) 

• 20% for savings and contingency  

Financial reflection is important to understand how we live and explore room for future improvement. Tracking your finances should be as easy as making notes in your phone’s note app or in your notebook. So don’t pressure yourself into winning the Excel championship because it might discourage you from the actual tracking process. 

Here are the 5 steps to work out your monthly budget plan.  

Step 1: Reflect on your student budget   

Start with what income you have: part-time work, bursaries, family support. Then think about your fixed costs like rent, phone, and bus pass. What’s left can be divided into your 30-20 categories. 

For example,  £200 per month (after rent is covered elsewhere): 

• 50% (£100) for other daily essentials, like food 

• 30% (£60) for coffee dates, nights out, or paying for those subscriptions 

• 20% (£40) for future trip funds or emergency  

When planning your budget, the goal is not perfection, but awareness of your own financial situation. It helps you be more mindful about your money habits and which aspects you can optimise.  

Step 2: Track your needs (the 50%) 

You don’t need to be an accounting student to track your needs like a pro. Thinking about the 50/30/20 method, most budgets would be classified under essentials, so the key is cutting back where you can control it, like food and transport.  

For groceries, use Tesco Clubcard, Aldi Super Six, or your local shop’s loyalty programme to save points for later use. There are price discounts for close-dated products around every store’s opening and closing time, and this happens more at low-traffic stores. My advice is to find grocery stores around your house and notice the traffic. If few people come in, there is a greater chance you can find more discounts at this destination. If cooking is not for you, you can also use Too Good To Go app for surprise food bags from cafes or bakeries.  

For transportation, purchase a bus pass through the UoB portal for 20% discount or get the 16-25 railcard through Student Beans for 25% discount. It saves so much on train and bus fares! 

For other expenses, remember ‘the more the merrier’. The cost should be low if you divide among enough people. By managing these needs well, you leave more room for fun and savings. 

Step 3: Be smart with your wants (the 30%) 

Do not overthink or feel guilty about your wants! Some tricks to manage your wants are: 

• Pick one “fun expense” per week, whether it is a meal out or a coffee date. 

• If you consider buying something for the third time, it suggests that you don’t need it urgently. Save it until Black Friday or Cyber Monday for a discount. 

• Use student discounts offered in the UK from Unidays or Student Beans. You’ll be surprised how often they release limited offers. 

Saving money doesn’t mean that you opt out all the fun. It’s about choosing what fun would have the highest return on investment. 

Step 4: Automate the 20% savings 

When your student finance drops, move your 20% straight into a separate savings space. Every UK bank has built-in budgeting tools or online savings that let you automate your monthly income.  

If you can’t save the full 20%, start smaller, even at £5 or £10 per month. In 12 months, it could accumulate up to around £100. Build this slowly and you will be surprised by how much money you have in the end.  

This financial buffer is important to build up and have in case of an emergency expense cropping up, or even for a fun purchase you’re planning like a holiday – your future self will thank you! 

Step 5: Personalise your plan 

Consider the 50/30/20 rule as a guideline not a strict law. You can personalise the percentage according to your lifestyle and income. For example, if you have a job, maybe try 40/30/30 to save money faster.  

Do a 10-minute review at the end of each week and see what blew the budget, what saved it, and tweak your plan for the next month.  

In conclusion, budgeting can help you feel more in control of your finances. By using the 50/30/20 rule, you can cover your essentials, enjoy your social life, and still save for the future. Small, consistent habits today build financial confidence for every term ahead.