MLBW - we do the same as you but instead of taking out the cash, I use Microsoft Money to virtually allocate funds at the beginning of every month. I have an 'account' for each expenditure: Rent, Dogs, Medical, Groceries, Dog Walker, Travel, Houshold bills, etc.
The great thing about this is that I can calculate easily how our spending habits would have to change if we, for example wanted to pay more in rent. Then I can see immediately that I would have to lower saving, groceries, misc expenses by such and such amount. So we always know what we are really able to afford.
Actually I've set up the computer program to automatically distribute the money, so we have already spent from the day we get paid. And yes, we always put money into savings first and don't touch it ever.
We've got 2 dogs, so every month the money I put aside for them is greater than what we spend on their food so when they have to go to the vet, there is money 'saved' up to cover those expenses. Same goes for travel, we actually 'save up' every month for our travel and don't go unless our virtual account says we have enough money to go. We also carry forward any under-expenditures to cover any unexpected things that come up.
Every week I will take the receipts we've collected and enter it into the system to keep check of how we are doing for the month. at the end of the month if we are short on our food budget, we will eat tofu and veggies for the last week of the month just so we are within budget. We also do this if there are a few additional nights out for birthday parties, etc. that we didn't plan for.
Another tip, we try really hard not to waste food. If I over shop I end up throwing away rotten foods and it's such a waste of money!! Before we grocery shop, (which we limit to once every 10 days) we spend the 2 days before eating the fridge, clearing out anything that we may have to throw away if we leave it another day or 2. Not our favourite thing to do but it keeps us from wasting.
For us, we choose to spend our money on travel, but it doesn't mean we have excess money or don't have to budget, it just means that instead of paying for higher rent, or putting my boys in nursery for the time being, we travel as a family instead. We still must budget. in the end i believe that every family must budget in order to grow a solid financial safety net.
Tip for wet market shopping:
When starting out, if you're not sure how much things cost and don't want to be cheated, you can always say, give me $8hkd worth of vegetables. This way you can see what $8hk gets you and you have a good reference point. Same goes for fruits, something like I have $50hkd, what can i get? The poorer local people do this depending on how much money they have available for food on that day.
I also would recommend you always pick your own produce instead of letting them pick for you. If you get a dishonest seller, they will give you 50% fresh produce and 50% older items so then can off load their loss. If they say it's sweet, it's not always true. Once you find a seller that you are comfortable with, stick with him/her, your loyalty will be rewarded with discounts and honest recommendations.
, even by being a little 'thrifty'. Please keep the good ideas coming...:bounce: