Money is one of those things that can take a lot of hard work to earn, and a limited time to disappear. It can slip through my hands before I even notice, so for that reason, I have found the only way to keep this from happening is to do daily budgeting. Here are the basics to daily budgeting, and how it can help you, too.
How to keep your budget in check
The more I look back over my work history, the more I realize that I made quite a bit of money without much to show for it. I wasted countless dollars in college by not budgeting, and now I am learning the hard lessons. It's hard to realize how much money I was wasting when it was only a few dollars here and there. Just because I am not out buying cars and houses doesn't mean that I am not spending far too much. After calculating six months of receipts, I realized I was spending about $100 a month on unnecessary things like fast food, coffee, and activities. While that doesn't seem like a lot of money, it is an extra $1200 a year that could have been saved. The best way to keep my budget in check is realizing where my money is going, and knowing the impact of spending even one dollar. This is the reason I am not as lax as those that do monthly and yearly budgeting, but instead I focus on daily budgeting. Every potential purchase I make has to answer to my budget.
How many days a month do I pick up a coffee so I can be awake to work? How many times do I stop for dinner because I didn't pre-make anything knowing that I would have time constraints? For me, the answers to these questions are too many times. Every up-tick in numbers to these questions means more wasted dollars. This $100 a month needed to be used for necessities, and if not necessities, then savings. This is also the reason I skip the allowance method. Every month is a different month, and I need a pot of money to pull from if needed. I spend what I have to, and occasionally splurge on things that I truly want, and that's usually spent on things for my daughter. Using this method, I end up with more money to spend on emergencies, or save for the future. This also eliminates the regret that comes with realizing how much money I have wasted, and dreaming of what it could have been used for.
A few dollars spent on frivolous things in a day doesn't seem like much, but when you calculate the number of times it is happening, the total for the year is big enough to make an impact.
- Banking & Budgeting