Hidden Expenses 2011

Hopefully this article can open your eyes to some of the hidden expenses that are likely to appear in the coming months and years so you don’t end up cursing the bank statement when it comes through the door, living off Super Noodles for months on end whilst your fridge forgets what “real” food looks like.

Here you can find plenty of areas that can end up costing you money that you maybe hadn’t accounted for. The most likely place for a hidden expense in the flat is your electricity/gas bill.

It’s hard to know how much your bills are likely to be after a cold winter, especially when companies put up prices without telling you. When it comes to these bills I would thoroughly suggest keeping track of what you’re using. This can be easy if you’re with a supplier that allows you to keep track of your usage online. To ensure you don’t get stung with a big bill the best bet is to set up a monthly direct debit for your electricity/gas. The big advantage of doing this is that it spreads out your payments across the year and, if you’re really lucky, you can end up getting a rebate from your supplier if you have overpaid throughout the year.

As we said, the flat is littered with hidden expenses and your deposit, or the lack of a return of your deposit, can be one of the most expensive.

Most landlords are fair when it comes to handing back a deposit but make sure there is no chance of you being left out of pocket by doing a couple of key things. Firstly, take photos of the property before you move in. Make sure you, or anyone else, don’t damage anything and if you do repair it yourself. And, most importantly, ensure that the place is clean when you move out. Some landlords will charge you a fortune for the cleaning of a property.

The final hidden expense around the flat is broadband. You might see lots of adverts about broadband for less than the cost of a round at your local, but in reality when you add in the cost of your landline you will be looking at much closer to £20 a month and that’s only if you’re in the right area. Live in the middle of nowhere and you could easily end up paying closer to £30 a month. This is one of the things you have to shop about for and you could be surprised at some of the companies that can offer you cheap broadband.

We know the cost of our university career when we sign up but we don’t get told of the added “associated” costs of getting a shiny degree.

The first of these to appear is the cost of books. What are books I hear you ask?

Well, books are sadly still a vital part of your university career and you will no doubt need to buy several every semester. You might consider this to be a small amount to pay but when you consider that the average university book costs around £25 you can quickly see that the costs can spiral. For some science-based degrees this amount can be quite a bit higher.

There are a couple of easy techniques for saving money on books. I found the best ones were to either book them out of the library well in advance, check around for second hand ones online or in the university bookshop, or split book purchases between you and your course mates and then share.

When it comes to books it’s also vital to ensure that you keep track of the books that you have borrowed from the library, as the fines can quickly run up. My record was £43 for four books whilst writing my dissertation. Ouch!

Around uni, other costs can raise their head that you may never have considered. The biggest of these is no doubt graduation.

A joyful time that is all about celebrating all the hard work, and partying, you have done over the last four years can easily be one of your most expensive university experiences. Between tickets for your ball, black tie clothing and fancy dinners, the costs can quickly sky rocket. Start planning your graduation and get stuff booked early to avoid paying through the nose.

As you can see, there are lots of hidden costs associated with a university education, from the first day right through to the last. The best thing to do is be aware of what lies around the corner. Sticking your head in the sand will only result in the lack of a social life, or a very empty fridge.

RBS MoneySense Top Tips:

1. Keep track of all your spending and try and review this regularly. Online banking can help track your direct debits, standing orders and credit card spending. Keep a written record of cash payments. You should soon start to get a picture of where all your money is going and cause you to question what needs to be changed or tightened up.

2. Before buying new books or considering a broadband provider, take time to shop around to ensure you've got the best deal available. A little extra time invested before making a purchase could save you a lot of money in the long run.

3. If you've got an important event such as graduation coming up, set yourself a savings goal. Establish what the event will cost you, how far away it is and how much you'll need to save each month to achieve your goal. By spreading the savings amount into bite-sized chunks and by making a firm commitment to yourself, you should soon find things become much more manageable.

All information within this website is produced by Student Punch. Please note that the views and information have not been endorsed, issued or approved by RBS except for the RBS MoneySense Top Tips. Any views expressed in this website are not necessarily those of RBS.