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Housing (rent or mortgage) -

The first consideration for everyone is the roof over their heads. Your rent or mortgage payment should be one of the first categories you make in your budget.

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Household bills -

Coming in a close second: bills, bills, bills. These might require some estimation on your behalf, especially if payments fluctuate each month. Sometimes you can pay an agreed fixed monthly rate for certain bills, based on an estimate gauged from the previous year.

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Birthdays -

Adding birthdays to your calendar doesn't just help you remember them, you can also track and budget for gifts and parties you might need to attend. Set yourself a limit to avoid overspending.

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Savings goals -

Any big goals you're working towards with savings should also be one of the first categories you make. Saving a little towards a house deposit or big purchases each month really compounds/adds up over time!

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Furniture and home decor -

Perhaps something happens to your couch, or you need to expand your home office. Saving for items like extra storage and any DIY projects you need to tackle should form part of your budget.

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Kids' stuff -

Back-to-school purchases, hobbies, and day-to-day ways to keep kids entertained usually require some spending, even if it's on small items.

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Vacation -

An annual vacation is often a must to unwind and relax properly. The stress of worrying about money while you're exploring can really take away from the experience though, so budget accordingly! 

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Groceries -

Food is a rising expense, and one of the first things to budget for. Tracking your spending on groceries might lead to some surprises. Keeping a strict budget will help stop any spending on unnecessary items.

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Transport -

Getting to and from work, hobbies, and other spaces typically requires buses, trains, car fuel, etc., while obligations abroad or across long-distances means accounting for flights. Tally up your usual spending and account for inflationary prices, just in case.

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Dining out -

Spending time with friends or catching up with family by dining out can really add up if you're not careful, so it's best to have a category specifically for it in your budget.

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Emergency repairs -

The 'rainy day' category has entered the chat. Repairs to home appliances or structural problems at home can catch you off guard and without a way to pay for them unless you have an emergency repair fund.

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Pets -

Our pets bring so much love and joy to our lives, but it comes at a cost! Make sure to account for pet food, toys, and other miscellaneous expenses associated with your little friends.

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Online subscriptions -

It's easy for subscriptions to stack up if you're not keeping a close eye on them. Do you use your music, movie, TV, and magazine or newspaper subscriptions enough to justify the expense?

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Hobbies -

We all need hobbies, something we do to take our minds off things. Depending on what yours is, plan the amount to budget for each month.

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Wellness -

Gym memberships, vitamin and mineral supplements, yoga classes: they all fall within the budget category of wellness.

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Legal fees -

It's another category none of us want to think about, but if you need to receive counsel it'll cost! Whether it's on a house sale, due to an accident, or because of the breakdown of a contract, have a little extra put aside for potential legal fees.

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Personal care -

Regular haircuts or manicures and other personal care can add up fast. Think about how often you need to account for having personal care expenses (this includes products like shampoo and skincare items), and be realistic about what you can afford.

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Taxes -

There are two things that are a certainty in this life: death, and taxes. Set money aside for your annual tax bill so that you're not caught unprepared.

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Medical care -

Even if you have a quality health insurance plan, most will require a deductible at the very least; it's vital to have this money in reserve (and then some), just in case.

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Entertainment -

After all that hard work and diligence with your budgeting efforts, it's time to set a little aside for the fun things in life: concerts, festivals, events, experiences, movies, time spent with friends, and more.

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Insurance -

Insurance is there to help us with life's unforeseen moments. House insurance, car insurance, and pet insurance are examples to account for in your budget.

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Holiday celebrations -

When the holidays roll around each year, they can present us with really high bills. Budgeting in advance each year will help.

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Auto maintenance -

Just like those unexpected home repairs, our cars can give up right at the worst moment. Budget for auto maintenance and repairs.

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Investing -

Saving is one thing, having money that grows with a solid investment portfolio is another. By putting a little aside each month that's invested, your money could grow faster.

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Courses -

Learning new things through continuing education is money well spent. It could help you rise to a better position at work, or take a new direction entirely with your career.

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Donating -

Giving doesn't just feel good, it makes a real difference in the lives of those who need it most. Budget what you can afford for charitable causes each month.

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Clothes and shoes -

Wear and tear, changing seasons, and replacing items in your wardrobe is an essential cost and should be treated so with a budget category.

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Retirement -

Retirement might seem like a long way away, but without a solid plan for how to finance it now, it could lead to nasty surprises later. Put enough aside to enjoy your "golden years."

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Debt repayment -

Credit cards, store cards, financing, debt consolidation plans: it's extremely important that you keep up with your debt repayments, so make sure to set aside enough money each month to cover them.

Sources: (FirstBank) (Monarch Money) (Cents + Purpose)

See also: The best ways to make extra money in 2025

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