For our example, we will assume $500 a month. You then subtract that from the $2,000 that is left. You now have $1,500 and divide it by 4 = $375. This amount is now your weekly cash to live on. That includes food, groceries, clothing, entertainment, personal care, taxis (above regular transportation) and anything else that might be considered flexible. You can spend it anyway you like. A few more tips to keep to this spending plan:
- Whatever you have in your wallet is what you are spending for the week. You need to start thinking that when you run out of money in your wallet, you are done spending for the week.
- The idea is that you can still do the things you love, but you need to prioritize them on a weekly basis. It is much easier keeping to a weekly cash spending plan or budget than a monthly one.
- Go to the ATM only once a week.
- If you have a big purchase that week (i.e. groceries, hair cut), plan accordingly and don’t eat out.
This might not work for you the first time you try it. But, it will make you much more conscious of your spending. Don’t get discouraged and keep at it. It will make a difference in your spending.
(Copyright Down-to-Earth Finance LLC 2007)
