1: RentĮxperts agree that your rent should be between 25%-30% of your take home pay. You know exactly how much the bill will be every single month because it’s always the same. Fixed Monthly Expenses Listįixed monthly expenses are expenses that don’t change each month. I believe personal finance is personal and you get to fit your budget to meet your family’s values, goals, and lifestyle. It should help you determine which monthly expenses you have so you can add them to your budget. This monthly expenses list is comprehensive, therefore all of the expenses might not apply to you and that’s okay. We’re going to break these monthly expenses list up into the following categories: That’s not to say it can’t be lowered one day, but the point of the budget is to create a plan and stick to it. When it comes to budgeting, it’s important to be realistic and account for your actual expenses. The main reason people stop budgeting is that they aren’t creating realistic budgets for the things they’ll actually spend money on. That’s why having a monthly expenses list can help you write a better budget. It’s important to know exactly what you’re spending money on. But by now, you have all the tips and tricks you’ll need to budget for groceries and shop with confidence.Knowing what monthly expenses you have is the key to staying on budget. Spending money on food is something you just can’t avoid. Make sure to read the USDA guidelines carefully in order to determine an accurate monthly grocery budget – their food plan chart will help you determine the grocery budget for any household size, whether it is for a family of 4 grocery budget or a grocery budget for 2. So, as of August 2022, a female who is 19 through 50 years of age and wishes to opt for the low-cost plan will spend $304 per month on groceries, while a male on the low-cost plan in the same age range will spend $350 per month on groceries. These categories also tell you how much you can spend weekly and monthly on groceries based on age (for example, a growing 15-year-old will eat more than a 70-year-old) as well as sex (males tend to eat more than females). Department of Agriculture) Food PlansĮach month, the USDA creates food plans for a healthy diet in four different spending categories: Again, using a family budget planner and a food budget planner will help you create a realistic grocery monthly budget. Once you calculate recurring payments in the needs category like rent and healthcare, you can use the remaining money to determine your monthly grocery budget. Here’s an example of the 50/30/20 rule if your after-tax income is $2,500: This category includes investments, IRA contributions, or an emergency savings account. 20% of your post-tax income should be spent on savings.
This category includes items that are not essential, like streaming services, dining out at restaurants, or trendy new shoes. 30% of your post-tax income should be spent on wants.This category includes items that are absolute necessities, like rent, healthcare, groceries, and insurance. 50% of your post-tax income should be spent on needs.The 50/30/20 rule is an easy and popular way to plan your monthly spending and can be helpful to create a budget for groceries. Maybe you are spending more than you realized on ice cream – creating a visual of what you are buying and how much you are spending can help you determine what you should cut back on purchasing, or what you can splurge on. Tracking how much you are spending on things like sweets, bread, fruits, vegetables, and meats will make it simpler for you to set a realistic monthly grocery budget based on your dietary needs. This spreadsheet allows you to log food categories, exactly what you are buying, the quantity, price per item, sum, and where you are buying it (for example, grocery or home delivery). Once you gain a better idea of how much you are spending monthly, use this free food budget planner to track how much you are spending on groceries. Your remaining balance in the planner will automatically be calculated for you. A family budget planner even if you are a single person is a great place to start – this easy-to-use spreadsheet allows you to track how much you spend on your mortgage or rent, electricity, gas, cellphone bills, and more.
In order to establish your monthly grocery budget, start first by determining your overall household expenses. There are a few different ways one can easily calculate a realistic grocery budget. Make better decisions backed by data and insights Learn More How to Budget for Groceries