A solid budget that considers the necessary expenditure amidst the daily incidentals is more critical than ever. Amidst rising costs of living, budgeting could be the difference between living comfortably and living pay cheque to pay cheque.

But how do you account for these expenses? How are you to map out your spending?

Dividing your budget into the types of expenses that may account for your living expenses (the type of essential spending that takes up the bulk of your monthly expenditure). These may include home expenses, costs of basic necessities, transport expenses

Home Expenses

1. Home expenses. These costs include mortgages, property taxes, rent and home insurance.
2. Costs that make your home “liveable”. Consider utility bills and waste removal service fees.
3. Home maintenance fees. Think of the costs associated with repairing a roof, maintaining a lawn or fixing your heating system.

Cost Of Basic Necessities

1. Food expenses. Factor in the amount you spend on groceries rather than eating out.
2. Living necessities. Think vitamins, toiletries, cleaning tools and first aid supplies.
3. Basic clothing expenses. Consider what you spend on work attire, pyjamas, daily wear and gym clothes. This doesn’t include branded goods, jewellery or statement pieces.

Transport Expenses

• Transport and maintenance costs. This includes car rental bills, car loan repayments, petrol money, public transport fares, Uber costs and bike maintenance fees.

Healthcare Payments

• Long-term medication. Factor in the cost of long-term medication including blood pressure medication, cholesterol medication and birth control pills.
• One-time illness fees. Think of the cost of over-the-counter medication and the cost of visiting the doctor.
• Emergency costs. This includes setting aside money to cover accident-related injuries, broken bones or conditions specific to your medical situation.