Do I need to track every dollar?

If I make a budget, then I have to micromanage where every dollar goes!

❌❌❌Not True!❌❌❌

I am a detailed person. When I first started budgeting I micromanaged every dollar.

It became exhausting. Going over budget in some categories stressed me out, then I would end up pulling money from a different category.

Then I changed the way I managed these categories.

There are some areas that you will absolutely want to know if you are on track with your budget.

But there are other areas where you can and should have some flexibility!

What are those areas?

I call it your day-2-day spending. These are expenses that happen every single month, with no due date attached.

Things like groceries, eating out, gas, home supplies, etc…

These transactions happen so often that our checking accounts can seem so chaotic. Various transactions all at different amounts. 

It can be hard to really know what we spend in each category.

So how can we set an amount for these day-2-day expenses without having to feel like we need to micromanage it?

Once you have identified what falls into your specific day-2-day expenses, set your amount for this entire category. Then identify how much you need for each pay period.

When you get paid, take out this amount in cash. 💵💵 This will be what you have available for your day-2-day expenses.

No need to track every single dollar here. You can spend it as you like, but only for the expenses that you specified.

Once it’s gone, it’s gone, until your next pay period.

This helps give you the flexibility in not having to micromanage every single expense. It also helps you think twice about some expenses as you start to see your envelope reduce. 

Your friends invite you out to a sushi dinner and you see that you have $60 left in your envelope. You also remember that you need to get groceries. With a week left until you refill your envelope, you will have to decide what is a priority for you. 

You could go with them and do all you can eat, knowing you will be eating ramen soup for dinner the entire week. Maybe you go with them and enjoy 1 roll instead of all you can eat. This still allows you more options for dinner besides ramen soup. Or maybe you take a raincheck for next time. Either way, you have the knowledge now to make your decision.

Do you need help identifying which expenses you have would fall into this category? Schedule a free Q&A call today to discuss if the Clarity Session is right for you!

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