Monthly Expense Checklist: 20 Average Expenses to Include in Your Budget

Creating a monthly budget is an essential step towards financial stability. It allows you to track your income and expenses, identify areas for improvement, and plan for your financial goals. To help you get started, we've rounded up a checklist of 20 average monthly expenses that you should include in your budget. Let's dive in!

Housing or Rent

One of the biggest monthly expenses for most people is housing or rent. Whether you're a homeowner or a renter, you need to allocate a portion of your budget for housing costs. This includes mortgage payments, property taxes, home insurance, rent, and utilities.

Transportation and Car Insurance

Your transportation costs can include car loan payments, gas, maintenance, and car insurance. If you use public transportation, you'll need to budget for bus or train fares as well.

Travel Expenses

If you enjoy traveling, you'll need to budget for travel expenses. This can include airfare, accommodation, meals, transportation at your destination, and any activities or attractions you plan to enjoy.

Food and Groceries

Food is a necessity, so it's important to allocate a portion of your budget for groceries and dining out. Plan your meals ahead, make a shopping list, and avoid impulse purchases to stay within your budget.

Utility Bills

Your utility bills can include electricity, water, gas, and internet. These are recurring monthly expenses that you should account for in your budget.

Cell Phone

Cell phone bills can be a significant expense, especially if you have a family plan or use a lot of data. Consider shopping around for the best cell phone plan that suits your needs and budget.

Childcare and School Costs

If you have children, you'll need to budget for childcare expenses, including daycare, after-school programs, and babysitters. You should also consider school-related costs, such as tuition, uniforms, school supplies, and extracurricular activities.

Pet Food and Care

If you have pets, you'll need to budget for their food, grooming, and veterinary care. It's important to prioritize their well-being and include these expenses in your budget.

Pet Insurance

Consider getting pet insurance to cover unexpected veterinary expenses. This can help you avoid significant financial burdens in case of accidents or illnesses.

Clothing and Personal Upkeep

Allocate a portion of your budget for clothing, shoes, and personal upkeep expenses. This can include haircuts, salon services, skincare products, and personal care items.

Health Insurance

Health insurance is a crucial expense that you should include in your budget. It provides financial protection in case of medical emergencies or routine healthcare needs.

Monthly Memberships and Subscriptions

If you have any monthly memberships or subscriptions, such as gym memberships, streaming services, or magazine subscriptions, include them in your budget. These small expenses can add up over time.

Life Insurance

Life insurance provides financial protection for your loved ones in case of your untimely demise. It's essential to include life insurance premiums in your budget to ensure that your family is protected.

Homeowners Insurance

If you own a home, you'll need homeowners insurance to protect your property and belongings. This expense should be accounted for in your budget.

Entertainment

Don't forget to budget for entertainment expenses, such as dining out, movies, concerts, and other leisure activities. It's important to have some room in your budget for fun and relaxation.

Student Loans

If you have student loans, allocate a portion of your budget for the monthly payments. Consider creating a plan to pay off your loans faster and save on interest.

Credit Card Debt

If you have credit card debt, include the monthly payments in your budget. It's important to prioritize paying off high-interest debt to avoid accumulating more interest charges.

Retirement

Planning for retirement is crucial, even if it seems far away. Allocate a portion of your budget for retirement savings, such as contributions to a 401(k) or IRA.

Emergency Fund

Building an emergency fund is essential for financial security. Set aside a portion of your budget for emergency savings, so you're prepared for unexpected expenses or income loss.

Large Purchases

If you're planning to make any large purchases, such as a car or home appliances, it's important to include them in your budget. This allows you to save up and avoid taking on unnecessary debt.

Step 1. Calculate your income

The first step in creating a monthly budget is to calculate your income. Add up all your sources of income, including salaries, wages, bonuses, freelance earnings, and any other income streams.

Step 2. List all your expenses

Next, list all your expenses, including the 20 average monthly expenses we've discussed. Be thorough and include both fixed and variable expenses. Don't forget to account for annual or semi-annual expenses by dividing them into monthly amounts.

Step 3. Subtract your expenses from your income

Once you have your income and expenses listed, subtract your total expenses from your total income. The goal is to have a positive number, indicating that you have money left over after covering all your expenses.

Step 4. Create and track your budget on a monthly basis

Finally, create a budget based on your income and expenses. Use budgeting tools or apps to track your spending and ensure that you're sticking to your budget each month. Regularly review and adjust your budget as needed.

By following this monthly expense checklist and creating a budget, you'll be able to take control of your finances, reduce stress, and work towards your financial goals. Remember, budgeting is a continuous process, so keep monitoring your expenses and make adjustments as needed. Happy budgeting!