Many of us create our budgets on a monthly basis, but for finer control, you might want to create a weekly allowance for your spending. LearnVest offers this strategy.
Photo by Tax Credits.
Take your monthly take-home pay and subtract your fixed costs and other expenses expressed as a monthly bill (for example, annual insurance premiums divided by 12). What you’ve got left is your flexible spending budget for the month, which could cover things like daily lattes or dinners out. To get to the weekly flexible spending number, divide this amount by 4.3.
Some of us probably divide by an even 4 to get the weekly budget number, but that ignores the fact that months can sometimes have 4 or 5 weeks. That 0.3 extra will help make sure your cash flow doesn’t get into the red.
Budgeting the Easy Way: The One-Number Strategy [LearnVest]