Six Essential Things to Include in Your Monthly Budget

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Creating a monthly budget is far from easy and is certainly unique to each person, but that doesn’t mean there aren’t any common features of a budget everyone can implement. If you’re struggling to know what to include in your monthly budget, here are our six top suggestions.

1. Rent

The first obvious thing you need to allow money for in your budget is rent. This is likely to take up the biggest chunk of your wages and so should ideally be paid as soon as you get paid, or within a day or two maximum. This way, you can see out the rest of the month in the comfort that your rent or mortgage has been paid for.

2. Bills and Utilities

Alongside rent, you need prioritise bills and utilities. If you don’t have enough money to pay your electricity or gas bills, you’ll definitely find yourself in a spot of bother. With this in mind, try and align your bills to come out on the same day as your rent so you can sure everything that absolutely needs to be paid for is done. This also lets you know how much money you have left for the rest of your budget plan.

3. Buffer Fund

You never know when something might go wrong, be it your car, your boiler, or even losing your job. With this in mind, one of the things everyone should strive to include in their monthly budget is a buffer fund. This is separate to savings and is designed to be used to cover unexpected costs and bills. There is no ideal amount for a buffer fund, but ideally over $2,000 is a good place to start. This should cover most unforeseen bills or a short period of unemployment.

4. Charity Donations

Giving to charity isn’t something a lot of people prioritise when making their budget plans, but there’s good reason why you should try and weave it into your allowance. Giving to charity makes us feel good – it releases feel-good hormones called endorphins which boost our mood and can improve our self-esteem and physical health.

On top of this, the obvious benefit of donating to charity is knowing that you’re making a difference to a cause you care about, whether that’s an animal shelter or a human water appeal. It’s easy to make a difference as most charities now accept direct debits, so you won’t even notice a small monthly donation coming out of your account if you choose to set one up.

5. Treat Money

One thing a lot of people miss from their budget plan is treat money. Sure, you need to pay your bills and have some savings, but don’t make the mistake of never buying yourself anything. When you work hard for your salary, you deserve a treat each month. It might be a night out, a takeaway, some new clothes, or maybe even a new TV – whatever it is, you absolutely deserve it!

6. Savings

As mentioned, you should always reserve some money to put into savings. It might be that you’re saving for a house, a car, or for a vacation. It might also be that you have no particular reason to save up, but even if this is the case, don’t abandon your saving plans. It will come in handy one day, even if that day is far into your retirement.

Before you start funneling money away, make sure you shop around for the best saving account in order to get more for your money.


We hope you find this budget outline useful. If you already have one, what’s something you include on yours?

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