Budgeting

Create personal budget goals for yourself and rigorously follow it and track your spending!! Identify what you’re spending [money] on (what are needs, what are things you enjoy, what is unnecessary etc.) and actually compare your budgeted amounts with your actual spending.

— ESHANA BHANGU

University, as you may have heard, is expensive. It’s not just tuition — you’ll have to budget for textbooks, housing, food and entertainment. And yet, every year, students somehow find a way to make it work. Here are some time-tested tips and resources for how to plan and manage your budget.

BE REALISTIC If you’re already thinking about budgeting, then congratulations! Getting into a finance-first mindset is key to planning your budget. During the brainstorming phase, remember to put your plan into context. Categorizing your expenses can help with this. If you’re budgeting $60 for on-campus lunches and each meal is about $15, that’s four meals per month. Depending on your schedule, that may or may not be a realistic goal. Make sure to create a budget that suits you and your schedule!

EXPECT THE UNEXPECTED When preparing your budget, reserve some money for emergencies, which include losing your job and medical or dental crises. Experts recommend setting aside three to six months worth of living expenses. You may want to start by setting aside two per cent of your net income and gradually increasing your contribution rate every few months. If there’s one thing we’ve learned during the pandemic, it’s that even a modest safety net can buy you some time during unexpected scenarios.

Another aspect of planning for emergencies is to save your tax refund. Although it may be tempting to use a tax refund or stimulus check as extra money for discretionary spending, consider diverting some of it to your emergency fund to bolster your financial cushion. TAX INFORMATION Whether you’re a Canadian resident or an international student earning income in Canada, you should file a tax return! If this is your first time filing, getting ready to do your taxes can seem scary. However, there are various free, certified tax softwares, including TurboTax and H&R Block, which can automatically populate your tax forms and send email reminders about filing and payment due dates. UBC also has its own Tax Assistance Clinic (TACS), which assists students with filing their Canadian tax returns.

DON’T FORGET TO TREAT YOURSELF! Living with a budget doesn’t mean that you can’t splurge a little every now and then! It’s better to have a flexible and realistic budget that you can stick to than a restrictive, unachievable one. Just make sure to plan ahead so you’re not left with any nasty surprises on your bank statement! Past bank statements and tools like UBC’s first-year budget-planning worksheet and graduate student cost-calculator tool are good starting points.

TRACK YOUR PROGRESS Update your budget as needed from time to time. Whether you’re manually updating a spreadsheet or using a budgeting app like Mint, recording your expenses is imperative to achieving the balance between responsible spending and optimizing your time at UBC. If you find yourself consistently overspending, this may be a sign to revisit your budget. Creating a budget is not a oneand-done deal — it’s something that needs to be revised time and again as circumstances change. U