Get a More Accurate Weekly Budget Using This Formula

Many of us create our budgets on a monthly basis, but for more precise control, you can create a weekly allowance for your expenses. LearnVest offers this strategy.

Take your monthly home paycheck and subtract the fixed costs and other expenses expressed in your monthly bill (for example, annual premiums divided by 12). You’re left with a flexible monthly spending budget that can cover things like your daily latte or out-of-home dinners. Divide by 4.3 to get the number of flexible weekly expenses.

Some of us probably divide by 4 to get the weekly budget, but ignore the fact that there can sometimes be 4 or 5 weeks in months. That 0.3 extra will help make sure your cash flow doesn’t go down.

Easy Budgeting: One Number Strategy | LearnVest

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