A Good Example for Daily Money Management — The Kind Tips - Tips for Life, Study, Work and Entertainment

A Good Example for Daily Money Management

A Good Example for Daily Money Management

There is an adage that is often heard by people in Depression Era, says, “Save your pennies and your dollars will take care of themselves”. The same idea works for both time and money. If you are aware of your daily budget and manage to the budgeting each day, there will be less financial difficulties for you. To help you manage your daily money, we give a good example and you can learn how to review and create monthly budget as well as how to break down it into daily amounts.

A budget example:

In the year of 2007, the United States Census reports that a median American family has three people, earning $50,000 before taxes. After the taxes are withheld, say if your family’s take-home income is about $3,000 each month and the monthly expenditures include: housing, $1,200; transportation, $300; grocery, $500; living expenses, $250; health care, $200; utilities, $250; recreation, $100; life insurance, $75; savings, $75; and clothing, $50.

Some of the monthly expenses are fixed in amount and need to maintain untouchable, for example, the expenses on housing, utilities, transportation, life insurance and savings. The rest of the monthly expenses can be managed daily and should be calculated into daily totals. Assuming a month of 31 days, in this budget example, the daily budget on the expenses rather than the fixed ones should be: grocery, $16.13; recreation, $3.33; living expenses, $8.06; and clothing, $1.61. Everyone has different preference and priority, so the budget breakdown can vary from one to another.

In some supermarket and restaurant ads, they claim that you can enjoy a single meal for only five bucks, which seems to be attractive in price. However, does the price fits into your budget? The answer is, for a median family, a NO! Your challenge is feed a family of three with a daily budget of $16.13 per day, hence your target price per meal for each person is only $1.79 (three meals for three people per day). Then, how does a $1.79 meal look like? Think about the following meal plan: one pound of chicken leg quarters, which costs $1; one can of baked beans, which is $1.50; half bag of coleslaw with homemade dressing, $0.99; three glasses of eight-ounce mile, $0.38; and the total is $5.37 for a family meal, which equals $1.79 per family member.

It is not a difficult thing to take good management of your money and living expenses of all families are pretty much made up of these little things. Some other possible expenses may include pet care, cleaning supplies, haircuts, toiletries, gardening supplies, hardware items, hobbies, sporting equipment, household items and manicures, but you can employ the similar tactic from the above example of budget breakdown and manage your budget well. Additionally, you can have different tactics when considering spending—withdraw cash each week, set an envelope for weekly expenses, or use credit cards but pay on time.

*Image source: http://simplelifecozyhome.com/a-money-management-grid/

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