4/1/2024 0 Comments Monthly budget sample personal![]() If you don’t have a car payment, you might include less for transportation in your monthly expense budget. ![]() This should include all your regular expenses of commuting and just getting around town. With a 45.3% percent increase in fuel costs, transportation is the second-largest budget item for most people, with average monthly expenses of about $1025, including car payments, gasoline, and insurance expenses. (The numbers that follow in this article are based on Department of Labor data unless another source is cited.) 2. Move to California, and that same dwelling will set you back $1,958. In 2023, the average monthly rent in North Dakota is reported at $880. Rent varies in a similar way based on where you live geographically. A 15-year loan for the same amount at a 6.59% interest rate (the current national average for 2022) would cost $3,802.11 per month. Assuming a national average loan size of just over $439,400, a 30-year loan at a 7.29% interest rate (the current national average for 2024) would cost $2,972.43 per month. When it comes to a home loan, interest rates and the length of the mortgage also have a powerful effect on your monthly mortgage payments. Cost-of-living calculators can help you adjust your budget estimates based on your location. For example, the median home value in 2023 is $491,161 in New Jersey, but $212,325 in Ohio. Housing and rental costs will vary significantly depending on where you live. 20 Common Monthly Expenses to Include in Your Budget 1. To help you get started, we’ve assembled a list of 20 common things to include in a monthly budget, along with an average amount for each one that you can use as an initial benchmark. Underestimating or missing an expense can throw your whole spending strategy off balance, so it’s a good idea to explore some budgeting norms. This example is also included in the free spreadsheet found on the Budget Tools page.Whether you’re creating a new monthly budget or refreshing an old one, you’ve probably noticed how important (and difficult) it is to get your monthly expenses right. This may not seem like a lot of money, but look at everything they have accomplished - they are covering all their expenses, they are paying down their debt, and they are saving for their retirement. They can use this money for anything they want - paying down their debt, going out for dinner or a movie, or saving it for next month when they anticipate more expenses. After all expenses are paid, they have $170 left over. ![]() Their total monthly income is $4800 dollars and their total monthly expenses (for this month) work out to $4630 (found by adding their planned and unplanned expenses). The following table is an example of unexpected expenses that can occur in a month:īy looking at the above totals we get a clear picture of Tim and Sally’s financial situation. For example, in any given month, their child may have to pay for a field trip at school, the car may need some repairs, or Tim may buy lunch at work some days. However, this extra money is often put towards unexpected or unplanned expenses. Even if you misplace a bill, you will remember that it has to be paid.Īs you can see, their combined income more than covers their planned expenses. This is very convenient because you always know when a bill is due and how much money should be in the bank account on any given day. Note that the days are listed for when each fixed time payment is due. The following table shows all their expenses: This extra paycheck will be like a bonus for that month. For example, when Sally’s first paycheck falls on the 1st, her second paycheck will come on the 15th and a third paycheck will come on the 29th. This has the occasional advantage that Sally may get three paychecks in one month. However, each month they will need to calculate how much combined income they will get for the month as well as be aware of when they will receive it. They have rent payments of $1200 a month and have a debt of $6500.Įven though they have different time intervals of their pay, they decide to use a monthly budget interval. Sally uses public transit to get to and from work. They own one car, which Tim drives to work. ![]() They have two children, one in school and one in daycare. Sally works part time as a receptionist and brings home $500 every two weeks, after tax. Tim works for a transportation company and earns $3800 a month, after tax. The following example illustrates how to create a personal budget using a two income family.
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