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23 Monthly Expenses to Include in Your Budget

Budget is an important part of financial planning if you want to save money and stop overspending. Most people know that they should have a budget, but they hardly bother to create them as they find it challenging and too restricting to manage.

If you see it otherwise, budgeting gives you the freedom over your money to shape it correctly. Now, one of the most important aspects of budgeting is including your monthly expenses.

If you don’t know how to do budget, you must learn it at a young age from your parents or any other responsible elder.

Everyone set a budget as per their needs and requirement. Knowing how much money goes to your groceries and dining outside helps to tame your money.

Regardless of what method you choose for budgeting, tracking where your money is going helps you to stay within your allocated budget.

Now, the thing is many, especially the beginners don’t  understand what all things they should be included in their monthly expenses.

In this article we will explore particularly that part of the budgeting tips.

I find the best ways to divide the monthly budget expenses in ‘Need’ and ‘Want.’

What are your needs, and what are your wants? Seperately, make a list of these two things and then start creating a budget will be easier.

23 Monthly Expenses to Include in Your Budget –

What should be on the list of ‘Needs?’


If you are like me, rent is one of your biggest monthly expenses. For example, I pay 21k each month for rent, the 20% of my salary goes into renting.

Renting has both pros and cons, though. On the plus side, it offers flexibility and convenience when you have a transferrable job. You can move out easily without the cost of selling a house.

But the renting price is increasing with each passing year in metropolitan and silicon cities. People keep swarming every year for job opportunities and the owners rent out their home at high cost.

They know that they will get tenants easily, so they hardly care about reducing the rent. It has become a side hustle for many home owners now.

If you are not renting and probably, you bought a house, make it your home with a loan.

The situation is the same. A major part of your salary goes into EMIs and that should be included in your monthly budget as ‘need.’

However, I have written a detailed article on “how can you save money on rent”, you can read and hopefully it will help.

Property Tax

Property tax is a tax that you pay for the value of your property. It is usually paid yearly but should be considered, including them on your budget.

As it is an avoidable thing, if you own a house, you must pay your property tax. How much, that’s entirely depends on what area you are living, how big is your house and so on.

Though it is a benefit for the local government but a pain for you to pay. When you budget, consider keeping the amount separately for the tax to pay.

Utility bill

Your monthly utility bill is a fixed cost that you have to pay each month. It is a necessary expense, but you can certainly reduce your utility bills. Under the utility bill, usually water, electricity and gas come.

Keeping a stability in your bill amount helps you maintain a balance in monthly expenses. As water and electricity is a need, so is the utility bill.

To live a comfortable life, you will need water to drink, do the chores and so on. Likewise, you live in any part of the world, electricity is key.

Auto Insurance

If you own a car, auto insurance will become a priority as it protects you financially in case of any accident.

I am emphasizing it is important to have auto insurance. When you have a four-wheeler, even if you take all the precautionary measures to avoid any accidents. It may happen. Paying for a car damage is a heartache as the amount gets hefty. Unless you have an enormous saving.

In most states, it is illegal to drive without an auto insurance. If you get caught, you have to pay the fine. That’s not the same in India, though. A hardly a percentage understands the importance of having an auto insurance.

However, many won’t consider it as a need, but in my list of expenses, you should pay for the auto insurance.

Health Insurance

A study by the experts shows that the rising cost of healthcare in the United States is worried some. Individuals and families are struggling to meet up their medical expenses.

The rapid change in the lifestyle gives rise to health issues. One should must have health insurance to protect themselves financially during medical emergency.

If, God forbid, something happens to you and got admitted to the hospital, you would be required to pay the hospital bills, which will be easier if you have insurance.

Health insurance usually covers at least 75% of your medical cost. Thus, whatever you are paying monthly or yearly is going to cover you during your worst time.

Another reason for having health insurance is that it can save money on your taxes. This gives a little of respite to all the salaried person. Your health insurance will ensure tax-deductible.

Thus, certainly health insurance is a necessity and should be included in the monthly expenses.


Excluding groceries from your monthly budget expenses is never an option. They are always required for your living. You need food, household items and other convenience supplies monthly. Certainly, you can reduce the cost of purchasing groceries.

Why should you include them in the monthly budget expenses?

Since you can not rule them out, you have to know how much you are spending on them. Groceries can be expensive and if you don’t maintain a budget, there is a chance you will end overspend on them.

As you need groceries every month, keeping a budget is easier to track the expenses. How much you are spending on your food, frozen items, and other necessary supplies every month?

Travel Expenses

Travel is an important part of our life. Whether you are a student or a professional, you will have to travel to reach your destination. Thus, there are travel expenses. You will have to buy tickets for public transport or you need to buy fuel for your vehicle.

Travel cost you but you can control your travel expenses if you are careful.

That’s why it’s important to include them in the monthly expenses to track how much you are spending on the travel.

Internet bill

The next we have the ‘internet bill’.

Does it need to be in the category of need?

In today’s time, we rely too much on the internet for our work, entertainment and communication. It has become a part of our daily life. We hardly think about living without the internet for days.

With the pandemic situation, people and all other organizations opted to work from home, which is still going on. Without the internet, work from home is not possible.

The increase in demand of the internet is the reason why you should consider including it in your monthly expenses.

For example, I pay 900 INR every month for the internet, which has become a need for us because of the work we do.

Phone bill

Phone bill is yet another necessary evil. Every month, you have to recharge to get the outgoing and incoming call facilities.

However, many don’t consider phone bill as a monthly expense to be included in the monthly budget. When you are paying each month and it is a part of your daily need, consider it at your monthly budget expense.

Though the phone bill is relatively cheap as compared to other necessities, still including them in the monthly expenses is a wise decision.


There are countless reasons why education should be on your monthly expenses budget. If you have children, you have to think of the cost of education, which is rising significantly.

But it’s still worth an investment as without education there is no meaning to life.

The main purpose of including education in the monthly expenses is to get an overview of how much you are spending on it now and how much you will gonna have to spend in the later future for higher education.

It will make your work easier to strategize your saving.

Household repairs

When you own a house, there are miscellaneous expenses on household supplies, home décor, home renovation, and household repairs.

If something breaks, wears out, you would need to fix them by repairing or replacing with the new one. People usually forget to add them to their monthly expenses.

Almost every month, leakages often happen in the kitchen or need something to fix in the bathroom. The pipes may get rusted and need to be replaced, and so on.

Household repairs are an expense that should be considered and added to the monthly budget to track your spending. Also, to avoid costly and unexpected repairs.

Medical cost

Medical cost is unavoidable, unpredictable and expensive. You wouldn’t know when it will go off to your budget. You can never set a budget on medical cost.

However, health insurance provides a shelter during emergency. Still, it is important for you to include them in your monthly expenses. Have a separate budget for medical cost and insurance.

Allow yourself to educate about health insurance. If you or any of your family member is having a medical history, you have no other option left than including medical cost in your monthly expenses.

Child care

I have a baby boy and I know how important it is to have a monthly expense set only for child care. From the day my baby was born, we had expenses that we never imagined we will have. You can’t ignore anything that is needed for the baby.

As parents, we want to provide the best. There are vaccinations, doctor’s fees, medicines, unexpected health crisis, baby products, baby food, baby accessories and so on. All are necessary expenses.

It also includes ‘child care.’ Working parents struggles to leave their babies behind. But work is important too when you have dependencies and financial responsibilities.

Investing in a good child care allows parents to continue working at peace. It can be expensive, though. But you can always choose according to your budget.

Thus, it makes sense why you should include in your monthly expenses.

Emergency fund

An emergency fund is what everyone should have. It is a part of your financial stability and mental peace. The money that you save for unexpected events and expenses.

For example, you met with an accident, have medical bills to pay. If you are covered with a health insurance, it is a huge respite. Still, there will be expenses that you have to bear and the emergency fund will provide you with that safety net.

Or, you lost your job, have a family to feed, how will you manage?

Your emergency fund will help you at your worst. Thus, including it in your monthly expenses in your budget is a wise choice.

Monthly Expenses to Include in the list of ‘Wants’


Life is a journey and, along with everything, entertainment is a part of life. A little bit of entertainment adds colour to our life.

The source of entertainment is different for everyone. Some enjoy movies while for some playing outdoor is an entertainment.

Some prefer to listen to music and going to concerts. While some love to spend money on traveling, as it is their source of entertainment.

No matter what type of entertainment you choose, it is important that you include them in your monthly expenses.

For example, I and my husband love to eat good food and since I love cooking, I don’t mind spending money on exotic ingredients.


If you are living in a city and love exploring food, I am sure going to the restaurants frequently is your thing. Certainly, eating outside too often leads to overspending on food. You can save a lot by cooking at home instead.

But when you create a monthly budget for expenses, you should include the restaurant cost as well.

Eating outside saves time but not money. Thus, keeping a track of how much you are spending in restaurants and how frequently is important as a part of your monthly expenses.


Shopping is fun but if not careful, you may overspend.

Adding shopping in your monthly expenses saves you money by keeping a record. We usually go for shopping before any festive occasion to buy gifts for ourselves and family.

Coupons and online discounts lure the customer more towards shopping. You can control your buying impulse by including shopping in your monthly expenses to keep a check on how much money is going on shopping.

As per records, people end up purchasing products that are not needed when they see discounts and offers. Hence, if you include them in your budget plan, it will be easier for you to track the expenses on shopping.

Gym/club memberships

Why do you need gym and club memberships in the first place? I find it expensive and useless investment. Still, people who enjoy fitness and want to use the facilities of a club, they think spending money on membership plan is beneficial.


People love spending money on grooming and self-care. Taking care of yourself is one of the most important things to do. Not only physical health is important, but for mental health too.

Life is increasingly becoming busier and stressed. If you don’t care for yourself, you will lose yourself in your later days.

People have come forward and finally recognizing the importance of self-care. Now, how much you are spending on self-care is on you. You may book a spa in a star lit spa parlour or you can look for affordable ways for self-care.

No matter what you choose, keeping a monthly budget for grooming and self-care is a wise thing to do. For example, you can keep 1500 INR monthly for your parlour session.

Pet care

Pet provides companionship and love. Therapist says owning a pet can help reduce stress levels and promote empathy in an individual.

Taking care of a pet is a big responsibility. You can not leave them behind without caring. Buy specific food for them, take them to the vet, and so on. There are cost that you will need to bear if you consider a pet at home.

Automatically, the expenses towards pet care let you include in your budget.


Vacations are great. When our lives become monotonous, we need a break and vacation is all that comes to our mind. Exploring new places, new adventure, meeting new people helps us de-stressing our tired mind.

But vacation means there are travel expenses. There are travel ticket cost, accommodation cost, food cost, and other miscellaneous things we do on vacation where our money goes.

But the strange thing is you never feel the money is wasted when you are on vacation. Traveling brings so much energy to you, refreshes you, gives you joy and a reason to live. So, whatever money we invest on travel, it never feels weird or out of budget.

For all these reasons, and to make your vacation happening, consider saving up each month. Allocate yourself some money for vacation.


People love receiving gifts. Once the festive season comes, people keep swarming in the store to buy gifts for their dear ones.

The problem is you may sometimes get tempted to overspend on gifts if you don’t have a budget. Holidays feel stressful when you have to buy gifts and you know it will gonna cost you a month of your salary.

That’s why you should consider including them in your budget from the beginning itself. It will keep reminding you of how much money you have to keep aside for gifts.

It is a more stress-free way to deal with the expenses.

Parking fees

I live in the city and own a car. I can tell you why adding parking fees to your monthly expenses is a good idea to start with.

When you live in the suburbs, you hardly have to worry about parking. You can park your car by the roadside or there are ample of parking spaces available.

While the scenario is different when you look for parking spaces in the city.

Even though there is pay parking, it is difficult to get a free parking spot.

Those who commute regularly to the city usually pay monthly parking fees to reserve the parking space only for themselves.

Thus, you have to consider here parking fees in your monthly expenses too.

Final words –

The above are the things that I feel should be included in your monthly budgeting plan. Sometimes it varies with individual person’s requirement but these are some of the things that people should consider.

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