Routine Expenses

Routine expenses include the more obvious expenditures, such as rent, insurance, food, and entertainment.

Housing

Rent or mortgage will likely be your biggest expenditure. It will vary considerably depending on where you will be living, but you should never plan on spending more than a quarter to a third of your monthly income on rent if it can at all be avoided. You may be relocating to a city already familiar to you and have a good idea of what the rent is going to cost you. In case you don’t, check out a website such as www.rent.net to begin to get a sense of what you should expect. In some cases you may need to find a roommate or two in order to comfortably afford your rent. It is advisable to ask your new company if they offer any kind of relocation services to help you not only find an affordable apartment but also a roommate if necessary.

Your rent or mortgage will make up the biggest chunk of your housing expenses, but don't forget the other things that you pay for, too. How about your phone bill and the sofa and loveseat you bought? Consider the set of dishes you got at IKEA, and the washer and dryer. How about your cable bill? If you're paying costs for upkeep, such as having the carpets cleaned, windows washed, or painting done, be sure to include that, too.

Utilities

In addition to your household expenses will be your utilities: electricity, gas, phone, renters insurance, and so on. Some of them—renter’s insurance, for example—will have a fixed dollar amount so you’ll know what to budget for each month. The rest of your utilities will vary from month to month depending on your usage. When you call to set up your utilities, ask what the average monthly bill for your apartment was the previous year. Most companies have this information readily available, and although your personal use might vary from the average, at least you’ll have a vague idea of what to expect. You may also want to ask about setting up a budget plan so that you have a set amount you pay each month.

Debt

This is probably another big expense category, unless you've been very frugal or very lucky. Include in the debt category everything for which you owe money: your car, your student loans, your credit cards, and so on. Do you have a line of credit opened anywhere? What about personal loans? If your dad loaned you $1,500 for a security deposit and the first month's rent on your apartment, include that in your debt category. Include both principal and interest payments.

Insurance

Include any insurance you pay for in this category: auto, health (don't forget your co-payment if you're partially insured by your employer), renter's, and so on.

Taxes

If you don't own property, you probably don't pay many taxes other than sales taxes and those deducted from your paycheck. If you do own property, you'll need to include the local property taxes, even if you put money in escrow and your mortgage company makes the payment for you. Also include the taxes that are deducted from your paycheck: federal, state, social security, occupational privilege, and any others.

Transportation

If you don't own a car, your expenses in this category will be what you spend on public transportation. Most subway, train, or bus systems have monthly passes that are available for purchase.

If you own a car, include routine maintenance costs (such as oil changes) and what you spend on gas and car insurance. Don't forget those pesky little expenses for your license and car registration. If you pay tolls regularly when driving, include those too.

Also, think about parking expenses. Some apartments have parking included; others charge a monthly fee. The same holds true for your office. Is there free employee parking, or are you at the mercy of a public garage? If you will be using a public garage, monthly rates are generally much cheaper than paying daily, so make sure you do a little shopping around to find not only a close, safe garage, but also one that is economically feasible.

Along with your commuting expense, make sure to factor in the cost of cab rides and parking for evenings out or personal errands. And don’t forget the costs of auto maintenance and insurance.

Health Care

Hopefully, these costs are minimal. But don't forget to budget for dental costs if your insurance doesn't cover them, eye exams, glasses, prescriptions, and routine doctor visits.

Entertainment and Vacations

If you're like most people in their 20s and 30s, this category will contain considerable expenses. Make sure you include everything, for this is one of the first areas we'll be looking at in which to cut costs. This category covers a variety of expenses, such as vacations, restaurants (even fast food), and the cost of drinks if you go to bars, clubs, or coffee houses. Think about movies, concerts, museums, cover charges, and any costs associated with hobbies (golf, bowling, skiing, or whatever). Don't forget pet costs, magazines and books, video rentals, the money you spend on DVDs, CDs, DVD and CD players, and any other expenses related to entertainment. Don't forget the money you spend in the office football pool and on the trip to the casino. Be honest when you list expenses in this category. Many people don't realize how much money they spend on entertainment until they sit down and add it all up.

Personal

This category includes food, clothing, shoes, toiletries, jewelry, laundry and dry-cleaning costs, your health club fees, all fitness expenses, and money spent on hair stylists, manicures, makeup, and toiletries. Start with the assumption that your groceries and toiletries will run you about $150 to $200 per month, depending on how many name-brand versus generic items you buy.

Giving

List money you contribute to your church, synagogue, or charities.