I'm 22 and about to graduate from college in Chicago, Illinois with a bachelor's degree in a few months, and I'm creating a detailed budget based on my anticipated expenses. After significantly overestimating these expenses, my salary is completely gone, but I'm very confident that there are some expenses I must be missing.
So far, I've included these expenses:
- Public transportation expenses
- Total taxes (estimated at 30% of my gross income)
- Medical insurance premiums
- Other side purchases, e.g. entertainment, clothing, etc.
- Charitable donations
- Roth IRA contributions (the maximum $5,000 per year)
- 401K contributions (the maximum 6% my company will match)
- Emergency fund / general savings
I have not included the fact that several of these expenses are deducted from my income pre-tax, which should reduce my overall tax burden. These are the expenses I'm not including:
- Heat, water, or cooking gas. These are included in my rent.
- Car-related expenses. I don't own a car and I have no plans to purchase one
- Family expenses. I'm single with no plans to start a family
- Home ownership expenses. I don't own a home.
- Phone expenses. My workplace covers all of these.
- Cable/satellite TV bills. I don't own a TV.
- Outstanding credit card debt. I have none.
- Outstanding student loan debt. I have none.
- Costs of furnishing my new apartment. These are already covered by my savings.
What are the primary expenses I should include apart from these?