If you’re like most people, you probably don’t have a good idea of what your monthly expenses are. That’s why I’ve put together this list of the top 75+ most common expenses that you may not be aware of. From groceries to bills, these are the things that can add up fast. So take a look, and maybe next month you’ll be able to save a little bit on your bill.
Common Monthly Expenses to Include in Your Budget
There are 3 major categories of monthly expenses: fixed expenses, variable expenses, and savings. We’ll cover each of those in more detail below. But ultimately everything that you spend falls into 1 of these categories.
One of the most important aspects of financial planning is understanding your monthly expenses. This includes both fixed and variable expenses. Fixed expenses are those that remain the same each month. Variable expenses, on the other hand, can vary from month to month. This might include things like groceries, utility bills, or gasoline costs.
Creating a list of your monthly expenses is a great way to get started on understanding your spending habits. It can also help you identify areas where you might be able to save money. By taking the time to compile a monthly expenses list, you can be more mindful of your spending and make changes where necessary.
Fixed expenses
A fixed expense is an amount of money that you pay every month, regardless of your income. Common fixed expenses include rent or mortgage payments, car payments, and insurance premiums.
When creating a budget, it’s important to list all of your monthly expenses, both fixed and variable. This will help you determine how much money you have available each month to save or spend on other things.
Housing or Rent
It’s said that your mortgage/ rent/ housing costs should be between 25%-30% of your take home pay. If you are paid every week, then your house payment should be the same as just about 1 week’s pay.
With housing costs on the rise, before getting into a mortgage payment that’s going to put pressure on your overall budget and your spending habits, make sure to take into account property taxes, home owner’s insurance, mortgage insurance, and anything else that might get calculated into your overall housing payment.
Car Insurance
In almost every case, you can pay for car insurance monthly or twice a year. If it’s twice a year, you can get a discount on your insurance payments. Always ask for what kinds of discounts they can offer you based on your life decisions, location, payment history, and more.
Cell Phone
Having a phone has become a requirement of daily life. And — most likely — your bill will not change month to month, so you know what to expect.
If you’re looking to save money and lower your phone bill, try Mint Mobile or Republic Wireless. Before you switch, always check your coverage area before switching. If they offer coverage in your area, you could save a LOT of money — like, hundreds of dollars — by switching.
Childcare, Daycare and School Costs
If you send your kids to private schools, you will have a payment for their tuition. A lot of schools offer monthly payments, but many ask that you pay your balance upfront. Either way, you can know that there is.
Even if you don’t attend a private school, you may have a daycare expense.
Pet Care and Pet Food
Owning a pet means there is an additional cost each month for food, toys, vet visits, and other items. To help offset the cost of pet ownership, some people create a monthly expenses list to track their spending. This way, they can be sure they have enough money to cover their pet’s needs.
Pet Insurance
While this isn’t always something for everyone, having pet insurance might help with those unexpected pet costs that come up. Do some research from your vet into which pet insurances they accept and recommend
Health Insurance
While many people have this automatically deducted from their paychecks, this is still a fixed expense to remember to cover each month inside of your monthly expenses list. This is going to be a budget category that is pretty costly, but very necessary as well as a healthcare or medical expenses sinking fund (see that one below).
Monthly Memberships and Subscriptions
These subscriptions that are fixed expenszes in your monthly budget are for things like home security system, pest control, Rin doorbell, dog walking, gym membership, movies and streaming services (like Hulu, Netflix, etc.), monthly care costs for kids or pets, or even utility bills that are covered by some kind of a “budget plan” or a fixed payment plan each month.
Life Insurance
Listen to me. Both you and your spouse need life insurance. Even if it’s not a high-dollar policy, something that in case of the worst case scenario, you and your family will be covered. Life insurance — especially for younger adults — is really inexpensive (it depends a lot of lots of different factors, but we’re talking like $10+ per month for a low-cost policy), but is SO valuable to have.
Homeowners Insurance/ Renters insurance
Most people understand that insurance is important, but many don’t realize the importance of having homeowners insurance. Homeowners insurance protects your home and your belongings in the event of a natural disaster or theft. Renters insurance is also important, as it protects your belongings in the event of a fire, burglary, or other type of disaster.
Entertainment
There is one budget category that is often overlooked: entertainment. People usually think about entertainment as something that they can splurge on every once in a while, but if you’re not careful, those expenses can add up quickly. That’s why it’s important to create a monthly entertainment budget and stick to it. What this will include can be up to you, but in my house, we consider going to sporting events like baseball or soccer games, or going to the movies, or axe throwing, etc.
Retirement
Saving for your retirement — even if it feels like not a lot of money being saved — is very important. In fact, the earlier that you start saving for retirement, the better.
Not sure how much you need to save for retirement? Go here and use this calculator tool to help you understand what you can do now to retire a millionaire.
Fixed Monthly Expenses List
When budgeting, it’s important to understand your fixed expenses. These are the monthly costs that don’t change, no matter what. Fixed expenses typically include rent or mortgage payments, car payment, insurance premiums, and loan payments. Tracking these costs is essential to creating a workable budget and staying on track with your finances.
If you’re struggling to make ends meet, take a look at your fixed expenses and see where you can cut back. Maybe you can renegotiate your car payment or find a cheaper apartment. Whatever you do, be sure to make a plan and stick to it. Otherwise, those fixed expenses will continue to drain your bank account each month.
Insurances (various)
Any insurances that you might have (I’ve listed many of them below), including:
- Home insurance
- renter insurance
- Motorcycle insurance
- Car insurance
- life insurance
- Health insurance
- pet insurance
- valuable personal property insurance
- phone/ smart watch insurance
- Home warranty insurance
- Large appliances insurance
Car Insurance
There are a few monthly expenses that everyone has to budget for, and auto insurance is one of them. Depending on your coverage and the type of car you have, your monthly premium can vary widely. However, it’s important to have some sort of protection in case you’re in an accident, so it’s worth taking the time to compare rates and find the best deal possible.
Subscription Payments
There are many kinds of household subscription payments to track each month including (but of course, not limited to):
- Gym membership
- Pool membership
- Dog walking subscription
- Magazine subscriptions
- etc.
Daycare
If you send your child to daycare, be sure to factor in that bill. Also, if you need to pay extra for meals along with the daycare itself, add those into your monthly budget list.
Phone Bill
Your phone bill should be the same each month. If you’re looking for a better deal on your phone bill, look into Republic Wireless or Mint Mobile.
Internet Bill
A lot of times, the internet bill is bundled with cable and or phone bills. If not, then make sure that you track your internet bill. And regularly shop around for the best deals in your area. There’s no need to stay with a company when there are other options out there with similar services that could save you lots of money.
Cable Bill
If you’re still paying for cable, make sure that you remember to take that bill into consideration. You might also want to look into getting rid of cable and replacing it with a streaming service or 2.
Homeowner’s or Renter’s Insurance
Usually homeowners insurance is included in your escrow that you pay for the house cost each month.
HOA Dues and Fees
Sometimes, these are included in escrow for your mortgage. But often times, you have to pay this individually each month or annually.
(Remember, there’s usually a discount for paying annually versus monthly. Might be something to take into consideration to save more annually if you can.)
Emergency Fund
Hear me out: you NEED an emergency fund. It used to be that the “$1,000 emergency fund” was ok, but that’s not the way the world looks anymore. Start by building up to a $1,000 emergency fund and then keep adding to it. Personally, I set my emergency fund to be 3-months of my family’s expenses in case of job loss, health issue, or unforeseen life events.
Personal Spending Money/ Fun Money
This is THE most important category to have in your budget. (Only kind kidding.)
Having a budget each week for your personal spending and for your spouse’s personal spending is important so that you can still have a life and have fun in it.
In my house, we do $25 per week for each my husband and myself. This way, we can each have personal splurges and we don’t feel confined by our budget constantly.
Add it in your budget and you won’t be disappointed.
Variable Monthly Expenses List
Variable expenses are costs that change from month to month. They can include anything from food and gas to entertainment and cable TV. To keep track of your monthly variable expenses, it’s helpful to create a list of them and track how much you spend each month. This way, you can identify areas where you might be able to save money.
One way to save on variable expenses is to plan ahead. For example, if you know you’ll need to buy groceries for the month, make a list and shop for the best deals. Another strategy is to comparison shop for services like insurances or internet plans. And finally, be mindful of your spending habits and try not to overspend on things that are not necessary.
Student Loans
Be sure to include all of your student loans you’re currently paying monthly.
Note: If your loans are in deferment and you’re not paying this bill monthly, you can leave it off the list for now. But don’t forget about them. 🙂
Credit Card
Make sure that you add your monthly credit card bill(s) to your monthly budget. Start with the minimum payment and then see how much more you can afford to pay from there.
Car Payment
If you have a car payment or car paymentS, be sure to keep track of these in your monthly budget list.
Travel Expenses
Even if you don’t travel to fancy destinations, setting aside money every month in a travel fund will help make sure that when you do need to travel, it won’t throw off your whole budget.
Other Loans
Any other loans you have, you need to make sure to track them as well in your monthly expenses.
Debt Monthly Expenses List
It’s really important that, no matter what you do, you pay at least the minimum on any debts you have each month. These particular debts can include:
- Healthcare bills
- Vet bills
- furniture financing
- home loans
- loans for big projects
- and more.
Charitable Donations and Tithing
This is a category that not everyone will want or need, but if you donate to charities monthly or tithe weekly to church, then this is a category to track.
Note: If you’re feeling like you’re stretched too thin with your budget, please don’t feel like you NEED to tithe or donate money. Your financial goals for yourself and your family are important.
Wiggle-Room Fund/ Buffer
This is the extra money that you leave in your checking account so that no bill surprises you and forces you to overdraw your account of bounce a check. Personally, I keep $1,000 at a minimum in my account on top of my other money. When I first started to keep this buffer inside my account, I did $100 extra and added more buffer as my bills increased in size (hello, rent that more than doubled my mortgage).
Gas (for cars)
Gas for cars is a necessary monthly expense for many people. Transportation costs can be expensive, but there are ways to reduce those costs. One way to save money on transportation is to carpool with others. Another way to save money is to take public transportation.
Natural Gas/ Heating Oil/ Propane
Heating bills can be expensive, depending on the type of heating fuel you use. Heating oil, natural gas, and propane are all popular choices, but they all have different monthly costs. Electric heating is also an option, but it can be more expensive than other fuels. Be sure to create a monthly expenses list to help you keep track of your costs.
Medical Out of Pocket Costs
Medical out of pocket costs can be a large portion of one’s monthly expenses. A monthly medical bills list can help one stay organized and keep track of their expenses. It is important to include both the date and the amount of each bill. This will help ensure that all bills are accounted for and give an accurate depiction of how much is being spent on medical care each month.
You can also negotiate your medical bills! My dear friend Allison shares ALL about this and how you can do that too HERE.
Sports & Recreation
If you have kids that play in a rec league, or you or your husband play in an adult league for sports, this is important to have.
Entertainment
Your monthly entertainment bills, which may include items such as cable, Netflix, and internet, can be a major expense. It is important to track these expenses and include them in your monthly budget. One way to do this is to create a list of your monthly expenses and track them each month. This will help you stay on budget and know where your money is going.
Haircare/ Personal Care/ Beauty
Some personal care items that are often overlooked when creating a budget are shampoo, toothpaste, and other expenses associated with hygiene. A recent study from the bureau of labor statistics found that the average person spends $27 per month on personal care products. This may not seem like a lot, but it can add up over time. It is important to be mindful of these costs and include them in your budgeting plans.
Clothing
Set aside some money each month for a clothes fund for each person in the house. This can vary from household to household. Personally, we do $100 per season for my whole family using only Goodwill, thrift stores, Salvation Army, and ThredUp.
Try shopping second hand!
Gifts
Setting aside a sinking fund for gifts for anniversaries, birthdays, Christmas, teachers gifts, friends, baby showers, wedding showers, and more can be very helpful if you have a lot of parties in the year. Also it’s very important to remember that
Babysitter
The babysitter date night monthly bills monthly expenses list is a helpful document to have when budgeting for the month. It outlines all of the expected expenses for the month, including the babysitter date night. This can help ensure that there is enough money set aside each month to cover this special event.
Kids and/or Babies
One of the many monthly bills that families face is child expenses. This can include anything from diapers and formula to childcare and college tuition. For many parents, it can be difficult to manage these costs on top of all of their other monthly expenses. That’s why it’s important to create a budget and track your spending carefully.
Pets
When it comes to budgeting, many people forget to factor in the cost of their pets. Pets can be expensive, especially if they require regular vet visits or expensive food. To help you budget for your furry friend, create a list of monthly pet expenses and compare it to your monthly bills. This will help you determine how much money you can afford to spend on your pet each month.
Power/Electricity
Electricity is a necessary evil in today’s society. It is something that we all need in order to function, but it can also be very expensive. That is why it is important to be smart about our use of electricity, and to budget for it accordingly.
You can find a bunch of ways to save on your electric bill HERE
Water/ Sewer/ Garbage
Some of these bills are paid quarterly or annually. Sometimes these bills are bundles together or included in the escrow for your mortgage or included in your rent. But this is something to keep as a fund for paying the bill so that you don’t get caught off guard by a larger bill that you forgot about.
Restaurants
This can include date nights expenses as well as the pizza that you grab each week. Budget for getting takeout each week so that you won’t be stressed out by your takeout orders on busy nights.
Groceries
This can vary greatly from family to family and where you live. But this is really important to plan for and to try to stay on budget each week or month.
Use this grocery cost calculator HERE
Easily Forgotten Monthly Expenses
Annual Subscriptions and Memberships
These subscriptions and memberships might not come out each month. But plan ahead for them by having a fund for these subscriptions so that they don’t throw off your whole budget.
Taxes
This may not apply to everyone, but especially if you have your own business, you need to plan for paying taxes.
Special Occasions and Gifts
There are a few instances through the year where special occasions arise. Think things like the end of the year when you have to get all of your kids’ teachers gifts along with the principal, secretary, administrators, etc. Planning ahead for these things makes it easier to handle and much less stress.
Home Maintenance
Maintenance costs for houses can very wildly. Some years, you might have no repairs, but some years you might find out that your roof needs to be replaced. Planning ahead and having a home repairs and maintenance sinking fund will help offset these costs and make it so that it’s not stressful to pay for these costs.
Annual Checkups and Copays
Plan for regular doctor’s visits each year. This will help you stay healthy AND by saving up for each of these visits, it will help it not take you by surprise.
Organization Dues
Whatever this might be for you — union dues, HOA, co-ops, etc. — if you have dues that you need to pay for services that you use, make sure to keep track of them.
Pest Control
Not everyone has a pest control, but if you do, this is something to make sure that you add as well.
Savings & Sinking Funds Monthly Expenses List
These sinking funds are basically when you set aside small amounts of money each month or week to go towards the fund in question. These funds will help you not have your budget thrown off by a one-time or once-a-year expense.
For these funds, you can use your own bank’s savings accounts, but I also recommend using the following apps:
Car Repair (or Replacement) Sinking Fund
Everyone should have a car repair fun in their monthly expense list. That’s because all cars will need repairs eventually (even new ones).
If you have a car that is starting to get older and needs more and more costly repairs, it might be time to start a car replacement fund to help either pay for a car in cash or pay a down payment on a new car.
Vacation Sinking Fund
If you plan on going on vacations with your family during the year, having a vacation fund will help you be able to cash flow the vacation rather than add it to a credit card.
Birthdays Sinking Fund
Set aside money each month to go towards each family member’s birthday for gifts, food, parties, etc.
Home Repair and/or Maintenance Sinking Fund
If you own your home, then you will need to have a sinking fund inside of your monthly expense list for your home repair fund. Houses will always need to be maintained as well. But the repairs are usually unexpected and can throw off your spending and put you in a financial bind.
Kid’s College Fund
You can save for your child’s (or children’s) college funds in a 529 account to get tax write offs. Look into Virginia 529 for these accounts.
Retirement
This is a fund that needs to be invested to have it grow to its full potential. Some of the best options for your retirement account is Vanguard and Fidelity.
Christmas Sinking Fund (or any holiday sinking fund)
Christmas comes every year on the same time. If you’re always feeling like you can’t afford Christmas presents, start a Christmas sinking fund on December 26th for the following year. You can save up small amounts each week that add up. But make sure to include that in your monthly expense list.
Savings
Set up automatic withdrawals from your checking to your saving each pay day. This will help you build up a cushion for your savings and emergencies.
Emergency Fund
Add to your emergency fund each week on payday. Even if it’s $20 per week, you’ll be working towards building that emergency fund. Your goals should be saving $1,000 first, then 3 months of all of your expenses, and then 6 months.
How to Budget Your Monthly Expenses
Creating a budget for your monthly expenses can be extremely helpful in managing your money and ensuring that you are able to afford the essentials. To get started, make a list of all of your monthly expenses. This may include rent or mortgage payments, car payments, insurance premiums, groceries, utilities, and other regularly occurring costs. Once you have your list compiled, prioritize the items based on their importance. The most important items should be at the top of the list and the less important items towards the bottom.
Then, calculate how much money you will need each month to cover those essential expenses. If you find that you are not able to cover all of them with your current income, look for ways to reduce your spending or find additional sources of income. It is also important to save for unexpected costs that may arise such as car repairs or medical bills.
The 50/30/20 budget
When it comes to managing your monthly expenses, creating and sticking to a budget is key. But how do you create a budget that works for you and your family? One popular approach is the 50 30 20 budget.
The 50 30 20 budget is simple: allocate 50% of your income to essentials, 30% to wants, and save 20%. This approach can help you stay on track with your spending while still allowing for some flexibility.
To start, create a list of your monthly expenses. This should include items like rent or mortgage payments, car payments, groceries, utilities, and debts. Once you have this list, assign each expense a percentage based on the 50 30 20 budget.
For example, if rent accounts for 40% of your monthly expenses, then assign 40% of your income to cover rent.
How to Build Forgotten Monthly Expenses Into Your Budget
Most people know how to budget for their regularly occurring expenses like rent, car payments, and groceries. However, many people forget to budget for their monthly expenses—those costs that only happen once a month. By building these forgotten expenses into your budget, you can avoid unpleasant surprises down the road.
The first step is to make a list of your monthly expenses. This may include things like haircuts, cable bills, and pet food. Once you have a comprehensive list, you can start allocating funds for each expense. If you’re tight on cash, you may need to make some cuts in other areas of your budget.
Another way to prepare for monthly expenses is to set aside money each week or month specifically for those costs. This can help remove the stress of having to come up with the money unexpectedly.
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