That's right, how much is your weekly allowance, not your children's!
If your idea of a household budget is simply making sure your checking account isn't overdrawn, it's time to put pen to paper! Take time this week to establish a written household budget. It's basic math:
Here's how…just start filling in the blanks! (keep in mind that some income & expenses may not apply to you…e.g. alimony!)
Step 1 – Start with total monthly income:
- Salary
- Spouses salary
- Child support
- Alimony
- Other
Step 2 – Next, list your monthly fixed expenses:
- Mortgage/rent
- Insurance (auto, home, life, health, disability,dental, long term care)
- Car payments
- Child care
- Clothes
- Memberships (country club, pool or fitness center)
- Lessons (piano, dance, etc.)
- Cleaning service
- Lawn service
- Pool service
- Loans (home equity, student, credit cards)
- Savings (college, retirement, vacation, emergency)
Step 3 – Some expenses tend to fluctuate, so calculate the average monthly expenditure of the following:
Now the fun part…simply subtract your total monthly expenses from your total monthly income.
Take a long, hard look at this number because that's your monthly allowance – it's the amount you should be living on every month…food, fun, gas, dry cleaner & all those everyday expenses! Please keep in mind that the average family of four spends $800 – $1000 per month just on food! If that seems like a lot of money, you'll be surprised how fast it goes! Those daily trips to Starbucks add up fast!
Let The Budget Diet begin! If your monthly allowance is $1200, get $300 out in cash each week, and when it's gone, it's gone! You'll have to start thinking twice about every purchase, and you just might find yourself clipping coupons or shopping at garage sales to make your allowance last!
If you have any questions, please leave a comment.
Or, consider reading a book on budgeting!
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Image courtesy of: Ambro / FreeDigitalPhotos.net
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In full disclosure, this post contains affiliate links to help support The Budget Diet girl! My advice will always be unbiased and free, but free won’t pay the bills! Thanks!
