July 08, 2011

What is Your Cost Per Day?

What does it cost you per day to run your household?  Have you ever thought about your household expenses this way?  We have budgeted amounts for food, gasoline, housing, utilities, debts, and so on and in the past I have worked hard to reduce our spending in each category.  But what if when we were trying to get motivated to cut back on expenses we looked at the whole picture and reduced our daily cost of running the household?

Does it cost you $50 a day, $100 a day, or $150.00 day to run your household?  Does it cost you less or more?  Simply add up your expenses for the month, multiply by 12 and then divide by 365 to get your cost per day.

Now start to set a goal of reducing that cost per day by doing all the little things that add up to big savings.  What should your goal be?  Perhaps try to reduce your expenses by $2 or $5 per day.  That means that all of those expense reductions must equal between $14 and $35 per week.  Can you do it?  Can you combine savings on food, clothing, gasoline and entertainment (as examples) in order to save that amount per week?  It will be a daily reminder of your goal to live on less, and perhaps get more money into savings.

Looking at something in a different way may be the impetus you need to start cutting back on expenses. 

1 comment:

Kris Watson said...

Whooo hee, can I relate to this notion!!!!

Five years ago, my basic expenses were $2500 a month and I made about $5000 before taxes. ALL taxes and both sides of my Social Security combined to be about $1000 a month. So, basically, I "blew" the remaining $1500. I am ashamed to write that. Using your math equation, it cost $164.38 every day, and I engaged in unbridled spending.

Today, my income is between $1100 and $1200 a month. My base expenses, including taxes, Social Security and food are $915. Again using your formula, that works out to $30.08 per day. I have paid off 16 credit cards, cut out cable TV, cell phone, all entertainment, actually. I qualify for lowered utility bills, as well. Much, much better.

I ought to add that I do not have health insurance and refuse government assistance, so I pay cash for any medical expenses. Helps to have a little money put away.

It sure helps to put this all down. I feel kinda proud of myself!