Knowing how much you make each day can be useful for daily spending, but it is not much good for monthly budgeting. Converting your daily wages to a monthly figure will make it easier to track your spending and determine how much you can afford for rent, food, utilities and the other essentials of daily life. Once you know how much money you have coming in each month, you can start to create the monthly budget that will allow you to not only meet your spending needs but put money aside for the future as well.
Find your annual income
Check a recent pay stub to calculate your daily wage. Calculate the number of working days in each month, then add up the number of working days throughout the entire year. Make sure you count all the days you are scheduled to work, including any holidays and weekends.
Calculate your monthly wage
Determine how much you make each day, then use that figure to determine how much you expect to make during the entire month. Get out your calendar and count up the number of days you plan to work that month. Do not forget to include any weekend days you are scheduled to work if you do not have a normal Monday to Friday work week. Add in any hours that might be eligible for time-and-a-half, if that applies.
Create your monthly budget
Once you have used your daily earnings to calculate your monthly earnings, it is time to put that information to work. Creating a budget is one of the most critical things you can do, financially, so take the time to plug in your earnings and your expenses and use them to build a comprehensive budget. Use your cheque book to determine the cost of basic necessities, like rent, utilities and grocery bills. Plug in your credit card spending, ATM withdrawals and other expenses to see where you stand. Compare the amount you are spending to the monthly income you just calculated.
Create a daily budget
Budgeting for the entire month can be difficult, especially at the beginning. One helpful exercise is to break down your monthly spending into daily chunks. You already know how much money you make each day, and now you know how much you bring in each month as well. Take that daily figure, pull out 10 per cent or so for savings and investments, then place the rest of the money in an envelope. Pull cash out of that envelope each time you make a purchase, and when you run out of money you are finished spending for the day. Doing this consistently day after day can help you build the discipline you will need to create, and stick to, your monthly budget plan.