Monthly Expenses

The first thing to do with your monthly expenses is write down everything that you spend money on. EVERYTHING. Put them into two categories - necessities and luxuries.

But here's the thing: there are some thing that people categorize as luxuries, and as a result we end up feeling guilt about spending money on them. For example, for a lot of us going to punk rock shows may seem like a luxury, but in actuality going to these events are what keep us sane, feeling connected to a community, and make us inspired to do awesome stuff. Those feelings are a necessity - it's a part of maintaining a healthy mental wellbeing. Don't feel guilty about spending money on things that make you feel like an enriched and empowered person, because that guilt will negatively affect what you take away from that experience. Think of it like dieting - when you deprive yourself of essential foods, your body suffers.

Here's a list of things that are generally considered necessities:

Housing/Shelter/Rent

Food

Bills

Transportation

Hygiene

Clothing/Warmth

Health Care

Emergency Care and Security

Dependents (Pets, Children, etc)

Culture/Community

Education

Debts+

And now for the luxuries:

Entertainment/Going Out/Fun

Hobbies

Non-essential foods (desserts!)

Eating Out

Booze/Cigarettes/Drugs

Savings*

Ok, so now that we have a fairly comprehensive list of what we spend money on, write down how much you spend per month or are ok with spending on these things. When allocating money to each of these categories, allow for a lot of wiggle room and/or round up. Unexpected things come up, and often you'll end up needing to spend more on necessities than you think you will. It's kind of an Expect the Worst, Accept the Best kind of approach.

Total the amount that you spend each month on your necessities, write that down, then divide that amount by 31. Subtract that amount from your daily income, and that will tell you how much you'll have each day to spend on non-essentials. Internalize this number, and each day whenever you spend money on anything try to keep yourself below that amount. On days when you spend less than that amount, you can add that to what you can spend the next day, or you can put that money away for savings or a rain day.

+Debts - Communicate with whoever you have a debt with about how much you owe in total and what their expectations are with getting paid back each month.

* Saving Money -  The ability to save money is a privilege for those of us who earn more than what our basic needs demand. Still, as far as luxuries go, it's by far the most important, as if you've saved enough money you'll be able to do things like not work for a while, or have something to provide for special circumstances.