20+ Monthly Expenses to Include in Your Budget

20+ Monthly Expenses to Include in Your Budget

The key is to make sure that all possible expenses are listed down so that you are ready whenever the expense does come around.

20+ Monthly Expenses to Include in Your Budget

When creating a budget, you need to take note of all the expenses that you might incur so that you can fully prepare for it and not get what they call a bill shock or expense shock.

No one wants to get caught with their pants down when an unexpected expense suddenly appears out of nowhere that will break your budget.

So before plugging in numbers into a spreadsheet or an application, take note of all of your possible expenses.

Afterward, break the numbers down so you know how much each expense is going to look like.

This way, you ensure that most if not all expenses will be covered.

So what are some of the monthly expenses to include in your budget? Let’s see.

Monthly Bills or Expenses to Consider in Your Monthly Budget

There are many monthly bills and expenses that you do need to consider.

We’ll break it down based on the simple monthly budget plan of 50/30/20.

We’ll look into needs, wants, and of course, savings and debt repayments.


Remember that needs are things that are necessary for you to survive.

This means these are the most important bills that you need to take care of and shouldn’t forget in your monthly expenses to include in your budget.

These expenses include:

  • House mortgage or house rentals
  • Homeowners or renters insurance (important so that you don’t end up with extra expenses when things breakdown)
  • Property tax (if not already included in the mortgage payment)
  • Health insurance (with the current health situation this is probably one of the most important to get
  • Out-of-pocket medical costs (this normally happens if you don’t have insurance as well)
  • Auto insurance (this is similar to having homeowners or renters insurance)
  • Sanitation/garbage (you don’t want garbage to pile up, don’t you?)
  • Life insurance (if anything should happen to you, it’s important that you have something to leave behind your family).
  • Water 
  • Gasoline
  • Electricity and natural gas
  • Groceries, toiletries, and other essentials (very important so that you can eat and take care of your home)
  • Car payment
  • Cell phone and/or landline (to some this is a very important expense while for others this can be cut)
  • Public transportation 
  • Student loan payments
  • Internet (this may or may not be a necessity for your home)
  • Child support or alimony payments
  • Child care
  • Other minimum loan payments

Now, if you find that is that your budget is completely out of whack and that you’re paying more than you are earning, you may need to reconsider that one budget expense or more needs to be removed and possibly put into the wants expense.

Remember that there are expenses that are absolutely necessary like groceries, water, and electricity and are monthly expenses to include in your budget. 

Meanwhile, others like a landline or internet may not be as important that you can cut out. 


20+ Monthly Expenses to Include in Your Budget

These expenses are harder to account for in a budget because they are normally not a set monthly fee.

Often they are considered a personal expense as they can easily be cut out of your regular expenses if needed.

This should account for up to 30% of your total expenditures. Some expenses that fall under wants include:

  • Dining out (since it’s generally cheaper to eat in, this can be a personal expense)
  • Clothing, jewelry, etc. (beyond your basic clothing, it generally can be a luxury item)
  • Alcohol, cigarettes, etc. (vices are typically considered additional costs that are not a necessity
  • Special meals in (steaks for the grill, etc.)
  • Gym or club memberships (since you can work out without a gym or club membership, this is considered an additional expense
  • Movie, concert, and event tickets (entertainment is often considered a personal expense since you can live without it)
  • Cable or streaming packages (same as spending for movies or concerts)
  • Travel expenses (airline tickets, hotels, rental cars, etc.)
  • Home decor or improvement
  • Self-care and personal grooming

One great budgeting tip is to look at what you have been spending in the past few months.

This will give you a bird’s eye view of your spending and give you a realistic baseline on how you should be spending your money on your personal wants.

Remember as well that as personal expenses are just that. 

They are not monthly expenses to include in your budget. 

You may need to negotiate and reduce this amount if you have other expenses that may take precedence.

You can eventually restore the budget once you have more income coming in. 

Make Sure You Set Aside Savings and Debt Repayment

20+ Monthly Expenses to Include in Your Budget

The money you set aside here will go towards savings, an emergency fund, and perhaps retirement.

Any debt that you may have like credit card payments and toxic loans also go here.

If you have debt, being able to allocate more money for loans so that you can pay it off will also be a good idea. Some examples of expenses that go here include:

  • Savings account
  • Emergency fund
  • 401(k)
  • Investments
  • Retirement accounts
  • Credit card payments
  • Extra payments for mortgage and student loans

Remember that for credit card payments, these are referring to credit that you leave on the card after making payments.

This should be classified as debt repayment and are essential in your monthly expenses to include in your budget.

But if you make expenses on the card and pay it in full, you should tag it under the kind of expense you made (like groceries, gasoline, etc). 

We suggest that the first thing you want to pay off right away is also debts.

The sooner you finish off your debts, the faster you will be able to start saving for yourself.

Keep savings low until all debt is paid.

Remember, that continued debt can mean a reduced capacity to pay for other needs and wants. 

Build and Finalize Your Budget

20+ Monthly Expenses to Include in Your Budget

Once you have finalized your list of expenses, then go ahead and enter them into your budget app or spreadsheet.

Then enter the amount that you would be spending for those expenses so you have a better view of those expenses.

Make sure to allocate the most for needs and debt repayment then the rest to your wants and savings.

If you need a monthly budget example, there are many available online that you can search for.

Final Thoughts

There are many possible expenses that you may incur in your budget.

Make sure to list them down and put them in your app or spreadsheet even if you are not paying for them yet.

The key is to make sure that all possible expenses are listed down so that you are ready whenever the expense does come around.


Author: John Benares

Leave a Reply

Your email address will not be published. Required fields are marked *