How to Create a Food Budget

Making a budget for yourself or family is a great way to provide accountability for where each dollar is going every month. Because food is an everyday necessity, you should draw up a separate budget for it.

Instructions

1. Collect your food receipts over the next two months. Record how much you spend on what items in a notebook. List each item and its price. Decide whether to include eating out in this budget or your entertainment budget.

2. Note everything including the odd trip to Starbucks to buy latte to go. If it goes in your mouth, it goes in the book.

3. Compare what you are spending to what you would like to spend. If necessary, pare the list by eliminating junk food and extravagant expenditures. Consider buying store brands and clipping coupons to save money. Search the newspaper for local sales.

4. Based on your findings, allocate a specific amount to spend each week on food and stick to it.

Tips & Warnings

• Reevaluate your food budget after two or three months. If you find that you regularly go over budget, look for ways to cut back further. Omitting one or two luxury items at the store each time you go can add up.