Any good piece of home budgeting software includes a monthly expense calculator. That’s an invaluable tool for keeping track of your expenses and understanding how much money you have.

It’s important to remember that not all expenses are the same. Understanding the different types of expenses will help you make better use of your monthly expense calculator. These are the types of expenses we recommend people track when using budgeting software.

Different Types of Expenses in Your Monthly Expense Calculator

1. Fixed

Fixed expenses are the simplest type of expense to track. They are all your expenses that happen on a fixed schedule. They can include utility bills, loan payments, and subscription services. These types of payments are regular and predictable.

When putting them into a budgeting tool, you can set the expected dates these will be due and an estimated amount for future planning.

2. Recurring

Recurring expenses are predictable expenses that don’t happen on a fixed schedule. These would be things like buying groceries, filling up your car with gas, or eating takeout.

When budgeting, create an estimated weekly/monthly day that the expense will possibly occur on. Then when estimating the expense, plan high. Doing so reduces the chances of going over your budget.

3. One-Offs

One-off expenses are generally unpredictable and unplanned. For example, going on a spur-of-the-moment family trip or making impulse buys while you’re on a shopping trip.

Budgeting for these can be tricky. Try making a “miscellaneous” budget category and saving some money up so that you’ll have cash in reserve for these one-off expenses.

4. Shockers

Shockers are genuine emergencies – your car broke down, or someone has to go to the hospital or your house floods. These are situations where you need money to cover the bills and fast.

These can’t be budgeted. Your best bet is to create a savings account specifically for emergencies and making sure there’s enough cash in it to cover a variety of incidents.  We recommend having enough money to cover at least three to six months’ worth of your typical monthly expenses saved in there. More if possible. Do not dip into this emergency fund unless it truly is an emergency.

Our Monthly Expense Calculator Puts Cash Back in Your Pocket

If you want to get a better handle on your home finances, try CalendarBudget. Our monthly expense calculator makes it easy to see your monthly expenses and plan for unexpected emergencies. Click here for a free trial!