Finance Guide
*Intro
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So you may have arrived at LSE with pockets literally bursting at the seams with fifty pound notes Or you may have hitched your way here crossing your fingers that your "mate" you met in the pub back home will let you sleep on their floor while you find somewhere to live. Whatever you financial circumstances, London is an expensive place and far from student-friendly. This guide brings together some basic advice on how to manage your money in the UK's most expensive city, and provides contact details of the financial help provided by the LSE and the Student Union.
If you have not yet arrived in London, please note that we do not advise you to travel until you have secured enough funds to complete your course - don't come to London hoping you'll be able to find extra income once you're here.
*General advice
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Plan Your Budget!
Sounds incredibly boring, and to be honest, it will be. But we can't stress enough the importance of working out what your income will be over the year, and prioritising what it should be spent on. There's no set budget that will apply to everyone - it depends on all kinds of things including which course you're on, where you live, and what your personal priorities and interests are. There's no getting round it: you need to design your budget yourself. Having said that, here are a few points to bear in mind:
*Work out your likely income for the whole year
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-Loans and scholarships supposedly cover vacation periods, but in reality you may find that they don't - final year students receive smaller amounts on the basis that they can work as soon as they graduate, so your normal budget may be over-stretched if you rely on receiving the same amount of money as in previous years
-If you receive income in blocks (e.g. termly loan instalments), divide it into blocks for the number of months you need it to cover, and plan your monthly budget based on this figure
-If you intend to work part-time, remember to account for times when you may be working less (e.g. exam term) or more (vacations)
*Work out your likely expenditure for the whole year
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-Of course you can't budget for every single thing, but it's worth being as detailed as you can. If you don't know the cost of something, seek some advice, don't just guess, and if necessary, overestimate.
-Remember some costs continue during vacations even if you leave London. Does your hall contract include vacations, and if not, will you have to pay to store your things commercially? If you rent privately, does your contract continue during vacations?
-Remember your budget may change from year to year. Private accommodation can require more flexible budgeting than hall accommodation, e.g. you will probably need to pay a month's rent (or more) as a deposit and an administration fee may be payable if you found accommodation through a commercial agent.
-Give priority to the basics: food, rent, fees, travel, childcare etc.
-Don't plan to put off paying the bills. If you fail to pay tuition or hall fees your degree may be withheld, which kind of defeats the point! Hassle from companies chasing up late payments causes stress and detracts from your ability to study and enjoy life, not to mention the possibility of obtaining a bad credit rating or a court judgement against you which may make life financially difficult for you in the future.
*Example monthly budget planner:
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Income £
Education loan
Education scholarship/sponsorship
Contributions from family
Earnings
Other
Total monthly income:
Expenditure (fixed outgoings)
Rent/mortgage
Travel costs
Food/meal costs
Gas/electricity
Telephone
Water rates
Insurance
TV rental/licence
Laundry
Other
Total:
Expenditure - variable outgoings
Books/stationary/photocopying
Clothing/toiletries
Sports/hobbies/leisure
Club/society subscriptions
Occasional costs (e.g. holidays, presents, travel)
Miscellaneous (e.g. do you smoke?)
Total:
Total monthly income:
Total monthly expenditure (total outgoings):
Monthly surplus/deficit (income minus expenditure).
