As you work on your monthly budget you have to begin with the basics and cover your expenses. Some basic expenses are simply not flexible such as housing and when the utility bill comes in, it is what it is (but you can always work on reducing it next month). So determining your food budget can be a little tricky.
If you are fortunate enough to be a receipt saver then it's time to sit down and add up just how much you have been spending on food. Don't forget to to include all those stops at Starbucks, chips from the vending machine at work, fast food impulses and eating out! If you put it in your mouth it was a food expense. Once you are over the shock you can begin to determine just where you can make some cuts if needed and begin to find a more realistic number for your food budget and extra cash to apply to all that debt or investments.
Not a receipt saver? My suggestion is that you try to make an educated guess and pad the number. Chances are you spend a lot more on food purchases than you might think. Next you have to review your budget and financial goals to determine a realistic food budget.
In some cases the demands of an incredibly tight budget with many "fixed" expenses will help you determine your food budget because there is simply nothing left. Don't panic! As a follower and fan of Dave Ramsey, let me refer you to his web site, radio program, Financial Peace University and many available publications. There is hope! And there is a proven plan that you can duplicate every time! In the meantime, hang in there and let's work with what you have.
Once you have a dollar amount give yourself a little extra if possible. After all like your budget, this food budget will take some time, practice and patience before it all falls into place. Stay on top of your food spending, keep your receipts or at least a detailed list of every food expense. Re-evaluate monthly and try to reduce your spending each month and in a very short period of time you should find a realistic average and begin to see some consistency.
