DAILY SPENDING LIMIT OR MONTHLY?
How to cut and manage spending is something that is everyone's concerns. It has really caused some headaches and resulted in financial problems especially when a wrong approach is adopted! Definitely we know how to set limits to our spending but the fact that it may not be workable and most times we tend to lay it off gradually with time posses a challenge.
I have had a situation where I had to work with a certain amount as my allowance for two months! I just stocked my house with food with almost all the money being a student and thought I was ready to go! Things ran smoothly and I was relatively pretty comfortable till after two weeks an emergency came up! I calculated the cost and if I hadn't spent the whole allowance, it would have taken up to half of the money.
Was I wrong to have used an estimate of two months? Or did I use a wrong approach? Come to think of it! Don't you think if I had planned a weekly budget I would have easily found a way of servicing the emergency? That didn't occur to me!
At some point I got to realize that the most important thing is how to live each day! Am I wrong? I may be wrong but in the situation I was in, I wasn't! How do I live today was now a problem after I thought I was covered for two months! Was planning for two months to my detriment worth it? Would I call it trying to economize or was it just fear of spending it all that prompted that action? If there was no emergency, I had things totally under control. What If I had adopted a daily spending limit?
Well, the beauty is I have now been able to strike a balance! I adopt a daily spending limit and do a 20% stalking. I now use 20% of my allowance to stalk and follow up a daily spending limit!! Totally works for me!
That is me, What works for you?
omonosa
It's of our own Benefits if we map out a good planning on our expenses.
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A Daily spending limit is a Good idea....one I haven't thought of before....will look into it....thanks for sharing
Well, i still haven't found what works for me.
But i have realised that the need to budget funds is essential. Just this past sunday, i tried downloading a budgeting app, wasn't successful. But i hope when i do, it works for me.
Nice one sir!
I think having a budget is necessary, but most times, following it up to the latter poses a problem.
The weekly budget seems to be OK though..
Good to hear!
omonosa
This is a good initiative.
I actually draw up a new budget every month as it gets hard for me to keep up with the former.
But hopefully i would find a balance over time
Thanks for sharing. This is definitely what we need to solve a major percentage of our problems.