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, go out to eat a few less times than normal-it all adds up in a month. It’s the number one category where people overspend (so easy to do, right?). This category will include what you spend on groceries and eating out at restaurants.Īnd if you’re looking to find extra money in your budget, food is the place to start. When budgeting for your monthly expenses, start with what we call the Four Walls-aka the basic necessities you need to survive: food, utilities, shelter and transportation.įood comes first-because, well, everybody’s got to eat. Here’s a list to get you started! Basic Monthly Expenses 1. Of course, monthly expenses vary from person to person and situation to situation, but there are some common monthly expenses to think about when you start a basic budget. That's why you need a plan, aka a budget.Īnd that starts with taking a look at your basic monthly expenses. The truth is, you’re way more confident- and you enjoy life more-when you’re prepared for it. And if you live in an area with a lot of seasonal changes, you’ll need to be prepared with the right clothing.Would you give a big presentation at work without preparing at all? What about your wedding day? You wouldn’t just show up without a plan and hope it all worked out, right? Not in a million years. If you work in a business setting, you’ll need to make sure you have work-appropriate attire. You need undergarments, shoes for walking around in and clothes for daily wear. But everyone needs clean and appropriate clothing to wear. These expenses include things like insurance premiums, office copays for general practitioners and specialists, pharmacy copays and over-the-counter medications.Īt first glance, clothing may seem like more of a want than a need. household spent $12,530 per person on health care costs in 2020. By skimping on this budget item, you could seriously compromise your health.Īccording to the Centers for Medicare and Medicaid Services, the average U.S. Healthcare costs add up quickly, and there’s no way to get around paying them. Even if you don’t own a car, you’ll still have to pay for public transportation or Uber rides. You’ll have to pay for gas, auto insurance and regular maintenance. ![]() If you own a car, your transportation costs will be the highest. Everyone has transportation costs, whether you drive a car, ride the bus, or ride your bike to work. If you have a job and regularly need to leave your home, then you’ll need a way to get there. But this also includes things like vitamins and supplements, cleaning supplies and personal care items like shampoo and conditioner. Your food costs include your weekly trips to the grocery store. Maintenance costs include things like mowing the lawn, paying for general repairs, fixing your roof after a hailstorm, and more. ![]() Plus, if you own a home, you’ll have to spend money on maintenance costs. It also includes things like utilities, waste removal services, homeowners insurance, and property taxes. But your cost of living expenses go beyond just your monthly rent or mortgage payments. Bureau of Labor Statistics, the average household spent $21,409 on housing in 2020. In general, necessary living expenses fall under the following five categories:Īccording to the most recent consumer expenditure report from the U.S. If your monthly budget was cut in half tomorrow, your necessary living expenses are the items you cannot cut out.ĭetermining your necessary living expenses may sound straightforward, but you probably have a lot more on that list than you realize. Necessary living expenses are mandatory for you to remain in good health and for your home to function.
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