Believe it or not, this is such a common question I hear when it comes to setting a budget. Regardless of which budgeting method you choose, you still need to figure out what is realistic for these different areas of life so you can set priorities for the bigger goals you’re looking to tackle: Get out of debt.
How do I decide how much to spend on food, rent, and normal expenses?
The answer to this question is going to be different for everyone because there are so many variables in place that dictate what one household spends compared to another. Which is okay, just understand that there isn’t a single golden ticket answer that will take care of this for you.
At the end of the day, you need to figure out what you’re spending on food (in the grocery store and in restaurants), add up all of your known expenses, and know what other areas you’re spending money. Once you’re able to track down all of this, you can make better decisions about where to cut back and what a realistic budget would be for YOU and you’re family. This will take time, but it’s apart of the process I’m afraid if you’re looking to be successful with something like this.
What are some budgeting methods?
There are several out there you can choose from me. I suggest you do your research into each one and adopt one entirely that makes sense to you, or take pieces from each one and make your budgeting system that works for you. Some ideas you can look into:
- Dream Crushing Debt method
- The envelope system
- 50/20/30 Rule
There are a ton of way of to go about budgeting, but there isn’t a single answer that will be your golden ticket. Do this or budget that much and you’re good. No, in fact, everyone’s situation, lifestyle, and circumstances and unique and so will be your budget. Take the time to track where you’ve previously spent your money and create a budget based around that number, not what others have done or are telling you it should be. Once you start tracking spending, you’ll be able to better determine where you can spend less and where you want your extra money to go.