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So early 2012 I decided I was spending way too much on food every month. So in June 2012 I took an average of what I was spending for the past 6 months (Mint.com is how I track all my purchases). I then decided I could probably deduct $100 from that average (you have to start somewhere) and it would still be an obtainable goal without sacrificing too much. So now that I knew how much I had to spend each month I then took it a step further and divided that number by 31(days in a month), rounded it, and used this new number as my daily food budget allowance.
This is the most important piece of information regarding any budget; success is all about the details. Being able to track your purchases and know where you stand at any day of the month is KEY!
I then setup an Excel spreadsheet and made a simple calendar. I wrote in a formula that when I inputted how much I spent that day for food, it would deduct from my daily allowance. This formula would then carry over to the next day and the next. So if I spent a large amount on groceries one day, I knew how many days it would take without spending anything to get out of the red.
This has been an amazing tool! It also helps tell me, how much I may be able to spend on going out for my weekends. If I had a really good week, I would reward myself knowing I could spend X amount over the weekend. Then there have been many times where this tool has allowed me to say ehh I'm too much in the red right now, I need to lay low and I'll be back on top in a few days.
It's all about having a plan and knowing where you stand at all times in relation to your monthly goal.
This is the most important piece of information regarding any budget; success is all about the details. Being able to track your purchases and know where you stand at any day of the month is KEY!
I then setup an Excel spreadsheet and made a simple calendar. I wrote in a formula that when I inputted how much I spent that day for food, it would deduct from my daily allowance. This formula would then carry over to the next day and the next. So if I spent a large amount on groceries one day, I knew how many days it would take without spending anything to get out of the red.
This has been an amazing tool! It also helps tell me, how much I may be able to spend on going out for my weekends. If I had a really good week, I would reward myself knowing I could spend X amount over the weekend. Then there have been many times where this tool has allowed me to say ehh I'm too much in the red right now, I need to lay low and I'll be back on top in a few days.
It's all about having a plan and knowing where you stand at all times in relation to your monthly goal.
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