Food! Glorious Food! Ummm budget diaster?!

One of the first ten things people will tell you is to look at your food spending.  Getting in control of food spending is key because it is an easy win and because most of us tend to spend more than we realize.

It is important to first be realistic about what you are spending.  Identify where it's going - take aways, restaurants, coffee shops, groceries (main grocery shop + top-ups), vending machine, etc. etc.

I say put those categories into your budget.  Then assess where you need or want to cut back.  Hint:  more value is at the grocery store :-)

I have only been budgeting annually for a couple of years and I'm learning how to get better at it each year as I tweak, tweak, tweak.  I highly suggest it though - it is a great exercise but like most exercises can seem very long and painful.

Last year I discovered a post on the blog Canadian Budget Binder that blew my mind.  I am usually trying to lower my expenses as much as I can to send money to various pots.  But the reality is that we cannot always decrease expenses.  That is not the way finances in life work.  

If I recall correctly, Canadian Budget Binder mentioned increasing your annual grocery budgeting amount by inflation (or some small percentage e.g. 2% to 5%).  We all know that prices of food items go up and down, but in total it tends to increase. By budgeting in an annual inflationary increase, you will not be pulling out your hair trying to fit a square peg in a round hole. 

The exact post escapes me but I recommend you checking out their site.  To get you started, the following post is a really good resource with lots of their links.  You can get their budgeting worksheet (for free!).  These guys have been at it for several years now and my gosh it shows - they have got it together!

11 Habits to Help You Budget Better in the New Year

Happy reading!

Pru