What is a budget?

Simply put, a budget is an overview of the money coming in and the money going out. Fortunately, a student budget doesn't have to be rigid and difficult. When I stopped seeing a budget as something strict and challenging that I had to follow to the letter, but rather as a tool to keep track of my finances and a guideline for spending money, it became much easier to follow, and I didn't give up as I had done so many times before.

Get started

Start by figuring out what system you want to use to keep track of your budget. A tip from me is to have it easily accessible, preferably on your mobile phone. This way, you can monitor your spending no matter where you are. There are several apps out there that can be useful to use, or a simple Excel spreadsheet can be invaluable. For example, Intrum has a budget template that you can download and customize for your own expenses.

Figure out how much you have to spend each month

List the income you receive regularly into your account each month. Scholarships and loans are straightforward, and if you have a part-time job, note down how much you earn each month. Since many part-time jobs are based on hourly wages and not a fixed amount each month, it may be a good idea to estimate a slightly lower amount than what you usually receive. This ensures that you don't create a budget based on money you may not have. The extra money can be used where necessary or even saved for later.

Use your scholarship wisely

It's wise to set aside the large scholarship you receive in August and January in a separate account, or at least a portion of it. This can serve as a buffer in case unexpected expenses arise. Suddenly, you may need a new phone, repair something in your apartment, or have other unforeseen expenses that cannot be postponed. Another option is to spread out the large scholarship over the semester. I transfer a fixed amount from the large scholarship to my regular account each month. This way, I have a little extra to spend, but I don't risk using up the entire scholarship at once.

Find out how much you spend each month on fixed expenses

It's important to have an overview of your fixed expenses. These are expenses such as rent (electricity and internet if not included in the rent), mobile phone subscriptions, insurance, streaming subscriptions, gym memberships, public transportation, and other things you pay for regularly each month.

Determine how you spend the rest of your money

If, like me, you find it difficult to sit down and know exactly how much you spend on other things, i.e., expenses that are not fixed, a good tip is to spend a week or a month tracking your expenses. This is smart to uncover habits that may seem cheap but add up to a significant expense when combined (use a small expense calculator to do this). Categorize your expenses into different categories such as "food," "clothing," "transportation," "social," and you will get a good overview.

If you still find it difficult to allocate specific amounts to different categories, Oslo Met has a consumption calculator that can be helpful.

djust your habits if necessary

If you're paying for three streaming services or eating out four days a week, it may be a good idea to make changes if you want better financial stability. For example, buying a latte every morning can add up to nearly 1000 kroner per month. Planning a weekly menu and doing grocery shopping once a week can also reduce expenses.

Set yourself a goal

For many students, the goal is simply to make ends meet, but perhaps you can even manage to save a little each month? It's wise to save so that you have a buffer in case you suddenly need it. If you have other goals, such as a trip or buying something new, it can motivate you to say no to unnecessary things.

Include savings in your budget

Based on experience, the mindset is often that whatever is left can be saved. But then it's easy to end up with nothing left to save. This is where the rule that a budget should balance to zero is important. It doesn't mean that all the money should be spent, but that savings should be included in the budget. Allocate a sum for savings each month in the budget. This makes it easier to actually save something. For me, this category also works as a monthly buffer in case something unexpected comes up that I haven't budgeted for.

Make changes along the way

To succeed with your budget, you need to stay on top of it, update it, make changes, and know what you have to spend. Compare your budgets for each month, and you can improve the budget for the next month.

There's nothing wrong with moving money from "Clothing" to "Social" or vice versa. This is the money you have to spend. It's better to move them between categories and still stick to the budget than to forget about it altogether. In Excel, you can have multiple tabs in the same file. I have a tab for each month, all set up in the same system. This way, I can easily compare and see what worked or didn't work.

Keep checking in!

Stay vigilant, it's a bit fun, like a challenging Tetris game.

Be realistic and stay motivated

When creating a budget, it's easy to be overly optimistic. If you want to reduce your expenses to save, it may be wise to create a slightly strict budget, BUT it shouldn't be so strict that you can't stick to it. Otherwise, you may quickly give up and end up spending much more than planned. Therefore, a budget must be realistic.

If you can't follow a budget to the letter, you can still go a long way by having an overview of what you earn and what MUST go towards fixed expenses and food. When you have this overview, you know what you have to spend on other things, and if you stay vigilant, it should last until the next stipend comes.

Good luck and happy budgeting!