A good budget covers every realistic spending category — not just the obvious ones. Many budgets fail because they overlook irregular or forgotten costs that then arrive as surprises.
Fixed monthly costs — the non-negotiables
- Housing: rent or mortgage payment
- Council tax: check your bill for the exact monthly amount
- Energy: gas and electricity — use the average of your last 12 months
- Water: fixed by direct debit in most cases
- Broadband and home phone
- Mobile phone contract or SIM
- Insurance: buildings, contents, car, life — list each separately
- Minimum debt repayments: loans, credit cards, finance agreements
- Subscriptions: list every one individually
Variable monthly costs — what you control
- Food and groceries: use your actual average, not a target
- Eating out and takeaways
- Transport: petrol, car maintenance, parking, public transport
- Clothing and footwear
- Health and beauty: haircuts, prescriptions, toiletries
- Household: cleaning products, small appliances, home maintenance
- Entertainment and hobbies
- Children: childcare, school costs, activities
The categories most budgets miss
These costs are irregular but entirely predictable over a year. Divide each by 12 and set aside that amount monthly.
- Annual insurance renewals: home, car, pet
- Car MOT, service and tyres
- Holiday and travel
- Christmas and birthday gifts
- Dentist and optician
- Clothing seasons: new school uniform, winter coat
- Vet bills
- Home repairs and maintenance
Savings and debt — categories that build your future
- Emergency fund contribution until 3-6 months of essential expenses is reached
- Short-term savings goals: holiday, car, home deposit
- Extra debt repayment above minimums
- Pension contributions above employer minimum
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General guidance only — not regulated financial advice.
General guidance only. Individual spending patterns vary significantly.