And guess what? You use them every day, so these aren’t monthly expenses that should surprise you. They’re not necessarily the most exciting monthly expenses to put in a budget, but household items are a part of life. Toothpaste, shampoo, dishwasher detergent, paper towels. Umbrella Policy (if you’ve got a net worth of $500,000 or more).Long-Term Care Insurance (if you’re age 60 or older).When budgeting your monthly expenses, don’t forget to include monthly premiums for these insurances you can’t do without: Yeah, insurance can be kind of boring, and it might feel irritating to spend money on it, but paying for insurance is a must. Think of it like a shield-insurance helps protect all the things you love and will be your saving grace when life happens. While you may not have some of these bills, this list should help you get the wheels turning as you create your own budget. The rest of these monthly expenses aren’t in a perfect order, but they’re a bunch of common things people spend money on every month. Okay, we’re past giving, saving and the Four Walls. Stay on top of your calendar and add extra for special occasions like traveling to Grandma’s or an out-of-town soccer tournament. Keep in mind these numbers might be different depending on your schedule or the time of year. This category includes gas, public transit fees, routine maintenance-anything you typically pay in a month for transportation. Whew, right? It adds up quick! To keep your housing costs from hogging most of your budget, keep these expenses to 25% or less of your take-home pay. Don’t forget insurance, property taxes and HOA fees. Just including your rent or mortgage payment isn’t enough when budgeting for your housing costs. To be safe, budget on the higher side in each of these budget lines-and if you don’t end up needing it, throw the extra at your debt (if you have any!) or your savings. Frigid winter temps? Put on some fuzzy socks. (Nobody likes to sweat while they sleep!).
Blazing hot summer? Add a little extra to this category. Include all the services that keep your house running: electricity, water, natural gas or propane, and trash services. Remember, these utility bills might change from month to month. Use coupons, eat what you have at home, start meal planning-it all adds up in a month. It’s the number one category where people overspend (so easy to do, right?). We put groceries as its own line, apart from restaurants, because you have to eat-but you don’t have to eat out.Īnd if you’re looking to find extra money in your budget, food is the place to start. Once you’re out of debt, you’ll save up 3–6 months of expenses in case of a bigger emergency, like an unexpected sickness or job loss.īefore you budget for any of the other monthly expenses, cover what we call the Four Walls-aka the basic necessities you need to survive: food, utilities, shelter and transportation. If you’re in debt, start by saving a $1,000 starter emergency fund (we call this Baby Step 1)-then pause saving and throw everything else (after your necessary monthly expenses) at crushing that debt. Not only does a padded savings account give you peace of mind, but it also helps you plan for big purchases. Savingĭepending on what Baby Step you’re on, you might need to make saving a priority. Whether you give to your church or your favorite charity or organization, start your month by giving 10% of your income to a specific cause dear to you.
Not just because we like to be a little weird (we do!), but because when we give, it takes the focus off of what we’re lacking and shines a light on helping others. And yes, it’s the first thing we budget for each month. Around here, we’re all about being generous.
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