Accounting for expenses
Tracking down how you spend your money may be a bit more difficult than assessing how it comes in, so it's best to break this step up into a few components.
First determine all your fixed monthly expenses like:
- Rent or mortgage payments
- Auto or other loans
- Insurance premiums — including health care, auto, home, life, long-term care
Next determine your regular monthly expenses that might fluctuate, such as:
- Food and groceries — including dining out
- Utilities — including gas, electric, water
- Transportation — including gasoline, vehicle maintenance, public transportation
- Household services — including cleaning and laundry
- Entertainment/recreation
Finally, average out a monthly cost for occasional expenses such as:
- Clothing
- Home maintenance
- Travel
- Hobbies
- Health-care related expenses — including medications and medical services
- Gifts and charitable contributions
