Learn how to budget with Public Mutual to track your spending, set achievable savings goals, and build a solid financial foundation.
{{ vm.tagsGroup }}
24 Jan 2025
5 Min Read
Public Mutual (Partner Contributor)
Learn how to budget with Public Mutual to track your spending, set achievable savings goals, and build a solid financial foundation.
Student life is full of excitement—campus events, late-night suppers, spontaneous shopping sprees—and sometimes, an unexpected cash boost from a freelance gig, birthday gift, or side hustle. That little windfall might feel like the perfect excuse to refresh your wardrobe, upgrade your tech, or treat your friends to something indulgent.
But these moments can also be a turning point. Instead of spending without thinking, why not use the opportunity to shift how you manage your money? It’s time to leave behind habits that no longer serve you and build better financial routines. Balancing long-term goals with everyday wants and needs may seem overwhelming—especially when funds are tight—but don’t worry! It doesn’t have to be a struggle.
In this article, we’ll walk you through a simple budgeting strategy that can help you take control of your finances and make confident decisions moving forward.
Budgeting is key to taking charge of your finances and making informed decisions about your spending. As a student, your funds might be limited, and without a budget, it’s easy to fall into the trap of living from one allowance to the next—or worse, overspending and ending up in debt. But with a budget in place, you can prioritise essentials, set aside savings, and still have room for enjoyment.
Plus, budgeting helps reduce stress. Instead of constantly wondering whether you can afford that grab-and-go lunch or last-minute concert ticket, you’ll have a plan. And that peace of mind means more energy to focus on what matters—acing your exams, pursuing your interests, and building a secure future.
One of the simplest and most effective budgeting strategies is the 50/30/20 rule. It’s beginner-friendly and works even if your income varies from month to month. Here’s how it breaks down using a hypothetical monthly income of RM1,000:
This framework is flexible. If you stay with family and don’t pay rent, you could save more. On the flip side, if your transport or tuition costs are high, you might need to trim spending on non-essentials like shopping or dining out. The key is adapting the percentages to suit your lifestyle—so your budget stays practical and realistic.
Now that you know the 50/30/20 rule, it’s time to put it into action! Here’s how you can use it to map out a financial game plan that works for you:
Identify all the money coming in each month—including parental allowance, part-time job earnings, or birthday cash.
Break down your expenses into two categories: fixed costs (‘Needs’) and variable costs (‘Wants’). Categorising your expenses helps you see where your money is going and pinpoint areas where you may be overspending.
Weigh your income against your expenses. Are you spending more than you have? For example, if your income is RM1,000 but your expenses total RM1,200, it’s time to make some changes.
Use the 50/30/20 rule as a guideline, adjusting the percentages to fit your financial priorities while keeping your spending impulses in check.
Stay aware of your spending by tracking it. You could use budgeting apps like YNAB or Wally, or even just a simple spreadsheet. Track everything—from your daily coffee runs to your weekend cafe-hopping adventures. At the end of each week, review your spending. Did you overspend? If so, consider switching to home-brewed coffee next week instead.
Budgeting isn’t a one-off activity—it’s a routine. The more consistently you practise it, the easier it becomes. Here are a few ways to build the habit:
Make the process more enjoyable by combining it with something you already love. Whether it’s listening to your favourite playlist, sipping a warm cup of tea, or turning it into a journaling session, these small joys can help budgeting feel less like a chore—and more like a simple act of self-care.
Saving doesn’t have to be a hassle. Set up an automatic transfer from your checking account to your savings or investment account. Public Mutual’s Direct Debit Authorisation (DDA) makes this process seamless.
Stretch your money further by taking advantage of student discounts and special offers. Every little bit helps lower your expenses, freeing up more funds for savings or investments.
What are you saving for? A new laptop? A graduation trip? Financial independence? Having clear, tangible goals will keep you motivated and help you stay on track with your budget.
With the 50/30/20 rule in your toolkit, you’re well on your way to turning budgeting into a sustainable habit. What once felt like a chore can become a source of confidence and clarity—an essential skill for navigating student life and beyond.
So, the next time unexpected income comes your way—whether from a part-time gig or birthday cash—pause for a moment. Will you splurge, or stick to your plan?
The choice is yours—and now, you’ve got the tools to make it a smart one.
