1. Committed Costs
These are your regular, expected outgoings that you plan for first.
Examples:
Rent or mortgage
Bills
Subscriptions
Childcare
These costs usually happen every month and don’t change often.
2. Non-Monthly
These are ad hoc or occasional costs that pop up throughout the year.
Examples:
Holidays
Annual insurance
Car repairs
Gifts
One-off family costs
These expenses can catch people out if they’re mixed into everyday spending, so we track them separately.
3. Flexible
This is your day-to-day spending that can change month to month.
Examples:
Groceries
Eating out
Shopping
Entertainment
Transport
This is the bucket you’re most likely to adjust during the month.
Why this works
Most budgets fail because everything gets lumped together.
By separating regular costs, ad hoc costs, and everyday spending, it becomes easier to:
See where you stand together
Spot problems earlier
Avoid surprises
Make better decisions as a couple
Stay on track without overcomplicating things
A simple example
If you book a holiday and pay annual insurance in the same month, that shouldn’t make it look like you’ve failed your normal monthly budget.
That’s why those costs sit in Non-Monthly, not Flexible.
Tip
Start simple. You can always refine your budget over time. The goal isn’t perfection — it’s clarity and control.