When you’re a university student, it can feel like money is always tight. Between tuition fees, rent, and the occasional coffee shop indulgence, the idea of building wealth might seem impossible. But what if you could start laying the groundwork for financial success right now, even with a student budget? It’s not only possible—it’s smarter than you think. With a few small, consistent steps, you can begin to build wealth and set yourself up for a financially secure future.
Here’s how you can start today:
Why Start Now? The Power of Starting Young
You’ve probably heard the saying, “The early bird gets the worm,” and when it comes to building wealth, this couldn’t be truer. Starting young gives you one massive advantage: time.
The earlier you start saving or investing, the more time you give your money to grow through the power of compounding. Compounding is when your money earns returns, and then those returns also start earning returns. For example, if you were to invest just £10 a week starting at age 18, you could end up with thousands of pounds more than someone who started investing at age 28.
Starting small might not feel impactful, but over time, it adds up in a big way. Plus, the habits you develop now—like saving regularly or sticking to a budget—will serve you for life.
Step 1: Create a Student-Friendly Budget
Budgeting doesn’t have to mean sacrificing all your fun. Think of it as a tool to help you live comfortably while still achieving your financial goals. A good budget ensures you’re spending within your means and still setting money aside for your future.
Start by tracking your income and expenses. Whether your money comes from a part-time job, student loans, or support from family, write down how much you’re earning each month. Then, list all your regular expenses—rent, food, transport, and yes, even your Netflix subscription.
Break your budget into categories:
- Essentials: Rent, bills, and groceries.
- Savings: Even if it’s just £10-£20 a month, make this a priority.
- Fun Money: Nights out, meals, or shopping—set a limit so you can enjoy yourself without overspending.
Apps like Monzo or Yolt make budgeting easier by tracking your spending automatically. Once you know where your money is going, you can start making adjustments to save more.
Step 2: Save Before You Spend
This simple mindset shift can transform your finances. When you receive your income—whether it’s your part-time wages or a student loan payment—put aside a small percentage for savings before spending on anything else. This is called “paying yourself first.”
It doesn’t have to be a lot. Start with 10% or even 5%. For example, if you earn £500 a month from a part-time job, save just £50. Over the course of a year, that’s £600—money you can use for emergencies, investments, or even a summer trip.
One tip: Set up a separate savings account and automate transfers to it every month. This way, saving becomes effortless, and you’re less tempted to dip into it.
Step 3: Explore Micro-Investing Apps
Think investing is only for people with thousands of pounds to spare? Think again. Micro-investing apps like Nutmeg, Moneybox, or Plum make it easy to start investing with just a few pounds. These platforms allow you to round up your purchases or set aside small amounts weekly, which are then invested in diversified portfolios.
For example, if you buy a coffee for £2.80, an app like Moneybox can round up the purchase to £3 and invest the extra 20p. It might not sound like much, but over time, those small amounts grow.
The key is to focus on long-term gains. Don’t worry about the ups and downs of the market—what matters is staying consistent and letting your money grow over time.
Step 4: Invest in Yourself Through Skill Development
Building wealth isn’t just about saving and investing—it’s also about increasing your earning potential. The best way to do that is by investing in yourself. Your skills, knowledge, and experience are some of your most valuable assets.
Consider taking online courses, learning new skills, or gaining certifications that align with your career goals. Platforms like LinkedIn Learning, Coursera, or Skillshare offer affordable options to learn everything from coding to graphic design. These skills can help you land higher-paying jobs or freelance gigs, even while you’re still studying.
For example, a university student who spends £50 on a digital marketing course might be able to start earning £200 a month as a freelance social media manager. That’s a 400% return on investment—and it’s just the beginning.
Your Journey Starts Today
Wealth-building isn’t about hitting the jackpot or making dramatic sacrifices—it’s about small, consistent actions that add up over time. Start by creating a budget, saving before you spend, exploring micro-investing apps, and investing in your personal growth. These steps might seem simple, but they have the power to transform your financial future.
Remember, the journey to wealth begins with a single step. What’s your first step going to be?
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