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Rent or mortgage, Council Tax, gas, electricity, water, buildings or contents insurance, service charge or ground rent.
BUDGETING GUIDE
What to include in a monthly budget
A good budget lists every regular cost, including the ones that only come once a year. Below is a full checklist and a worked example for someone on a £30,000 salary, who takes home about £2,093 a month.
Last reviewed: October 2026Figures: worked out with the WorthChex calculators
THE CHECKLIST
Everything to put in your budget.
Everyday
Food shopping, toiletries, phone, broadband, TV licence, streaming and app subscriptions, gym.
Getting around
Fuel or charging, car finance, insurance, tax, parking, train or bus fares.
Family
Childcare, school costs, pocket money, pet food and insurance.
Debts
Loans, credit cards, car finance, Buy Now Pay Later, overdraft interest.
Future you
Emergency fund, savings goals, pension top-ups, annual costs pot.
A WORKED EXAMPLE
Monthly budget on £2,093 take-home.
Example figures for a single renter outside London. Swap in your own numbers.
| Item | Per month |
|---|---|
| Rent | £850 |
| Council Tax | £130 |
| Energy (gas and electricity) | £110 |
| Water | £40 |
| Phone and broadband | £45 |
| Food shopping | £260 |
| Transport (bus pass or fuel) | £120 |
| Insurance (contents, phone) | £20 |
| Subscriptions | £25 |
| Eating out and social | £150 |
| Clothes and personal care | £60 |
| Annual costs pot (see below) | £70 |
| Savings | £200 |
| Total planned | £2,080 |
That leaves £13 unallocated. Give it a job, such as extra savings or a buffer for the month, rather than leaving it to drift.
ANNUAL COSTS
Turn yearly bills into a monthly amount.
Irregular costs are the main reason budgets fail. Add them up and divide by 12:
| Yearly cost (example) | Per year | Per month |
|---|---|---|
| Car insurance | £600 | £50 |
| Car service and MOT | £300 | £25 |
| TV licence | £180 | £15 |
| Christmas and birthdays | £480 | £40 |
| Dentist and glasses | £180 | £15 |
| Holiday | £900 | £75 |
| Total | £2,640 | £220 |
Paying that monthly figure into a separate “bills pot” means the money is there when the bill arrives.
A SIMPLE SPLIT
The 50/30/20 rule on £2,093.
Needs (50%)£1,047housing, bills, food, transport
Wants (30%)£628eating out, hobbies, holidays
Saving & debt (20%)£419savings and extra repayments
It is a starting point, not a rule. With high rent, needs may take 60–70%; that is common, and the answer is to keep wants lower rather than skip saving entirely.
Build yours
See how to build a household budget step by step, or check how much room you have in the affordability calculator.
FREQUENT QUESTIONS
Monthly budget FAQs
Should I budget from gross or take-home pay?
Take-home pay: the amount that actually lands in your account after tax, National Insurance, pension and student loan.
How do I budget with irregular income?
Base your budget on your lowest typical month, and put anything above that into a buffer account you draw from in quieter months.
How often should I review my budget?
Check it monthly for the first few months, then whenever something changes: a pay rise, a new bill, or a deal ending.
MoneyHelper budget planner. Figures are worked examples for planning, not financial advice.