Studying abroad, in my biased opinion, is one of the best investments you’ll ever make. That being said, it is an investment that involves large sums of money. Before you leave, you will have your visa, plane ticket(s), tuition, and accommodation paid. However, you will be paying your living expenses as you go, which can be a daunting task. I am here to show you exactly how I managed my money while abroad so you can have an inside look at what your expenses may resemble.
Have a place for your budget
The first step in managing any budget well is making a spreadsheet. This can be written on paper or saved on a computer. I used the Numbers application that comes on my Mac to create a spreadsheet and saved it onto my desktop for easy access. I have an example of a spread sheet using Microsoft Excel below.
Something I did that made seeing and handling my budget super easy was breaking my expenses into categories. I had my budget broken down into:
- Groceries and Supplies – This was for necessities such as food from the grocery store to toilet paper to my Wi-Fi plan
- Trips – This accounted for all travel plans I made for my time abroad such as my trips to Rottnest Island and Thailand. This was not set in stone prior to arriving, but a growing list of all the trips I scheduled along the way.
- Travel – This included all my public transport such as riding the bus and train, which was essential in Perth. You can also include Uber/Lyft and taxi expenses here.
- Extras – This category was for all the “extras” that were of-the-moment entertainment decisions such as the Justin Bieber concert and music festival I attended, or even just going out to eat.
- Pre-Paid Card – This is very unique to my circumstance, as AIFS provided me with a debit card that was reloaded with $250 U.S. every month to help offset costs. I kept track of my spending on my own and would compare that to the transactions listed on the card’s website to make sure everything added up.
- Cash – While abroad, I mostly used card to pay for things. However, I did come over with some cash, and I kept track of my losses when I spent and gains when people repaid me with cash. I do think it is essential to say that most people come with hundreds of dollars of cash, so bring what you feel is necessary. I luckily only needed to use an ATM once when I made a last-minute decision at the end of the trip.
Of course, there are plenty of ways you can break down your budget. Hopefully this guide can help you start that process.
Know Your Budget
The most crucial thing to managing a budget is knowing how much you have to spend. At the top of each category, I wrote a number that I tried not to pass by the end of the trip. If I needed more money for one category, I borrowed from another. Of course, how much you can dedicate to each category is your personal decision. My advice, however, is to give a few hundred dollars to the extras and necessities categories.
A very important thing to sticking to your budget is to write every single thing you spend money on down, even if it is just a cup of coffee. Be sure to update your budget sheet at least every two days, or you may forget some of your purchases. Also, have it in a visible area so you are forced to remember to update it.
Below is an example of what your budget sheet will look like with the categories, respective budgets and expenses.
After reading this, I hope you feel a bit relieved and confident to manage your budget while abroad. Remember: stay on top of your budget sheet so you know where your money is going!
4 thoughts on “How to Budget Your Money While Studying Abroad”
Lots of work, but very worthwhile, I’m sure. Another example of the 7P’s: Proper Prior Planning Prevents Palpably Poor Performance! Obviously, also requires ongoing maintenance!
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What your Grandpop said!!!
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