The first thing you need to do is figure out where your comfort level is. The best place to look is by going to your checkbook registers or online banking statements to view all of your spendings in the past year. Both you and your spouse should discuss what budget you should give yourselves for future expenses. Here is a list of things that you may wish to include when evaluating your budget from the past year:
Basics
- Current mortgage/rent
- Utilities (electric, water, etc.)
- Groceries
- Clothing
- Commuting/Gas
- Child Support/Alimony
- Work Lunches
- Phone (including cell)
- Pet Care (vet, grooming, food)
- Weekly Pocket Money
Monthly Bills
- Insurance (health, car, life, home)
- Medical/Dental (copayments, orthodontist, prescriptions)
- Loan Payments (car, student, etc.)
- Investment (retirement, education, etc.)
- Child Care
- Home Services (cleaning lawn/garden, pool, etc.)
- Dry Cleaning
- Internet Access, Cable, Satellite TV
- Entertainment, Eating out
- Various Expenses
Yearly/Occasional Expenses
- Property tax, Home Repairs, Homeowners' Association Fees
- Car Registration, Repair/Maintenance
- Computer (hardware, software)
- Tuition (college/school, summer camps, sports, etc.)
- Charitable Contributions, Gifts
- Dues, Subscriptions
- Vacation
