I hate budgets, you probably do to…

If you were anything like me, it is hard to save because its depressing creating a budget and it’s a royal pain in the @ss following that budget.  You’ve probably run into this situation before…  Someone asks you to meet for dinner and you ask yourself, “What is my limit for going out to eat?”  Your response is something probably like, “I don’t remember what I have left.”  At this point you get a bit upset and say screw it!  Right?  Well, I have a solution for you that worked for me…  Daily budgets.

How would a daily budget make things any easier?  Well, it breaks things down to bite sized chunks for you to remember.  Let me tell you how my wife and I do it.  We figured bills like our mortgage, electric, water, etc. can’t be “budgeted” in a sense, meaning they need to be used and paid regardless.  We determined the average for each of these bills and used that number to determine our daily budget.  We then decided how much we need to save and subtracted that from the remainder of our income.  At this point, we decided how much we can spend on stuff like clothing, restaurants, etc. and divided it by ~30 days in a month, coming to our total daily budget.  Now divide that number by two (we have to split it), and there you have it.  Let me show you what I mean, in an example using made up numbers:

Monthly Income: $2,000
Mortgage:
-$800
Electric: 
-$50
Water: -$25
Savings: -$575
Remaining Income: $550

$550 divided by 30 days = $18.33/daily

$18.33 divided by 2 people = $9.16/daily maximum per person

Now that we’ve arrived at our number of $9.16 daily budget per person, we wanted to make sure we cut it back because some months have 30 days, some months we might be a little tighter on money for some reason, etc.  So we called it $5 per day per person because we knew we could afford that.  Each day we can spend up to $5/day each and roll over the remainder for that week only (rounded to the nearest quarter), which we track on a small dry board on our fridge.  So let me give you one more example of how this might look, using my budget (not my wife’s):

Sunday – $5 budget/Spent $3
Monday – $8 budget ($5 plus $3 from the day before)/Spent $4
Tuesday – $9 budget (you get the idea by now)/Spent $2
Wednesday – $12 budget/Spent $5
Thursday – $12 budget/Spent $3
Friday – $14 budget/Spent $6
Saturday – $13 budget/Spent $12 (losing $1 for the week that doesn’t roll over)

We’ve both tried the typical monthly budget, the cash only purchasing, and so many other ways to save and none of them worked.  We created this on our own and it is wonderful!  Using this budgeting strategy while following the Promises you made to yourself will help you get out of debt quick!

Post any comments or questions you have about our daily budget!

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