Groceries and food items can grab a very big chunk out of one’s salary. Hence, it is essential to manage food expenses wisely. Controlling the expenses and their management becomes easy if one is aware of the details which can happen by maintaining a food budget sheet.
What is a food budget sheet?
It is a list of food items or groceries that are normally consumed over a certain period by the individual or a family whichever is maintaining the record. It is usually prepared on a monthly basis as the salary is usually received on a monthly basis as well from which the recurring food expenses are normally paid. The purpose of preparing this sheet is to know, and manage, the food expenses and the food budget.
What are the advantages of a food budget sheet?
- Aids in the management of food expenses.
The food expenses can be effectively managed if one clearly knows the items, and their prices, which are listed in a food budget sheet.
- Helps in identifying any discrepancies.
If the actual expenses are different than the budgeted ones, it indicates the issues of spending carefully as well as improving the planning of food expenses, through better budget-making.
- Incorporation of inflation.
If this sheet is prepared with the consideration of incorporation of the inflation rate, and the resultant price hikes, it helps in making the budgeting process better and reflects a clearer picture. It also eliminates the possibility of any probable misunderstanding, regarding the discrepancy, which only surfaces due to the inflation, and not due to the improper budgeting, or the high actual expenses.
- Helps in the incorporating the allowance for any extra expenses.
If some occasion is coming up, or a family is planning to invite people over for dinners, the extra food and grocery items, that need to be purchased, would be listed in the budget and would give an idea of how much extra money need to be spared, and put in the food budget.
- Aids in controlling extra spending on food.
If the money budgeted for the food has been used and the month has still not ended this sheet will highlight that one needs to control the money being spent on the food, so to avoid any financial issues.
What are the main components of a food budget sheet?
The list of items and columns on the food budget may vary from one family/individual to another. Generally, however, the following columns are inserted:
- The list of food items normally consumed over a certain period, e.g., daily, weekly, monthly.
- The prices of the food items.
- Any expected increase in the prices or inflation rate.
- Special food for any expected dinners, parties, occasions, etc.
- Money for dine outs.
- Total budget for food.
- Any discrepancy between the food budget and actual food expenses.
From time to time, changes are made in this food sheet, and it is updated based on the changed taste and needs of the family. Continuous attempts are also made to minimize any discrepancies and to improve the budgeting process.
