Some expenses, like emergency medical bills and unexpected home repairs, come out of the blue. These are the costs that hurt the most, since you never have a chance to plan for them in your budget. Other expenses are a routine part of everyday life.
They come around every month without fail, so it’s your responsibility to prepare for them. Here are four such monthly expenses that you should account for in your general budget.
One of your biggest monthly expenses comes from your constant need to keep a roof over your head. Unless you bought your house via cash purchase or you’ve already paid off your mortgage, then you’re going to need to make some sort of monthly payment, either to your landlord or the bank. Make sure you have a clear idea of exactly how much you pay each month.
Not everyone pays for the same utilities (since every property functions differently and has different agreements), but you probably have to pay each month for some combination of gas, water, and electricity.
If you have the internet at your home, then you have to pay for it on a monthly basis. The total amount paid to internet providers each month will depend on the specific company and the type of service.
This expense isn’t as easy to calculate as the others on this list, since it is never presented as a single monthly charge. All the same, you can determine how much you typically spend by keeping records and doing some basic math.
Rent or Mortgage Payments
One of your biggest monthly expenses comes from your constant need to keep a roof over your head. Unless you bought your house via cash purchase or you’ve already paid off your mortgage, then you’re going to need to make some sort of monthly payment, either to your landlord or the bank. Make sure you have a clear idea of exactly how much you pay each month.
Utility Bills
Not everyone pays for the same utilities (since every property functions differently and has different agreements), but you probably have to pay each month for some combination of gas, water, and electricity.
The payments will fluctuate slightly based on monthly usage, but they should stay relatively consistent. Take a look at your utility bills for the last few months so you can determine a general average. Then, incorporate this average expense into your monthly budget.
Internet
If you have the internet at your home, then you have to pay for it on a monthly basis. The total amount paid to internet providers each month will depend on the specific company and the type of service.
Some providers combine internet and cable in a single package. Examine your most recent bill so you’ll know how much you’re paying.
Food
This expense isn’t as easy to calculate as the others on this list, since it is never presented as a single monthly charge. All the same, you can determine how much you typically spend by keeping records and doing some basic math.
For ten days, write down how much you spend on food. This should include visits to restaurants, snacks from convenience stores, and trips to the supermarket. Add up the total after ten days, then multiply by three. This final answer will be your approximate monthly food bill.
Personal finance is all about understanding your financial reality and then acting accordingly. These four expenses are among the facts of life, so you’d better account for them when considering your finances. By including these costs in your budget, you’ll make it easier to stay financially healthy.
Personal finance is all about understanding your financial reality and then acting accordingly. These four expenses are among the facts of life, so you’d better account for them when considering your finances. By including these costs in your budget, you’ll make it easier to stay financially healthy.
