I’m going to keep this short and sweet today as I know you are likely busy putting the finishing touches on the holiday planning, but I want to give you a few things to consider as we head toward a new month and, depending on the goals you have, a new budget heading into the New Year. Sure, you might still be struggling to keep up with that Holiday Budget and that’s okay, but it’s always a good idea to keep looking ahead to what comes next.

Tip: If you are hoping to get your finances in order this coming year, grab my FREE Family Budget Workbook to help you do just that! Find it HERE.

8 Line Items All Successful Budgets Should Have

In that spirit, I’ve put together eight line items that all successful family budgeters should at least consider. In addition to the normal ones, of course.

Note: if you are struggling to make ends meet from month to month and cover your necessary expenses, this might not be the right time to implement these line items. Read them over and decide if there is any wiggle room, or if there is something currently taking up space in your budget that should be eliminated.

Item 1: Spending and Hobbies

If you don’t already have a line item in your budget for spending and hobby-related expenses, I highly recommend that you put one there. Having a budget can be frustrating. It can lead to animosity between spouses, especially if one spouse is “in charge” of the finances, and is one of the most frequent reasons I’ve heard for people giving up on their budget and financial goals altogether.

It doesn’t have to be much but makes sure each person in your household has some discretionary money each month so that they can make choices as to how to spend it to fund their hobbies or habits.

In our home, Justin and I actually have two smaller spending accounts and my daughters have debit cards of their own (find out how to get your child one HERE). We are all able to spend our “spending” money the way we see fit and don’t feel guilty about doing so.

Item 2: Household

One of my favorite line items in our budget is the one for household items, including paper products, shampoo, conditioner, cleaning items, and anything else that helps us maintain the home from month to month. This is not a repair fund (although I recommend having one of those as well) but is meant for those monthly expenses that tend to be fairly consistent.

We budget our household fund at $100 per month and that allows us to purchase any cleaning products, paper towels, toilet paper, paper plates, etc. that we might need for the month. When the fund is gone, it’s gone…and we go out of our way not to spend money on any household products until the start of the next month.

Why should you have this fund? It might seem easier to simply lump it in with groceries, but you could effectively spend all of your grocery (food) money on items to take care of your home. By prioritizing these items in their own category, not only do you keep your food budget intact, but you start to see where you might be able to cut back on household products, or just go without. (Homemade laundry detergent anyone?)

Item 3: Medical

Having a line item for medical expenses in your budget is especially important if you know that your child goes to the doctor during flu season or your husband has a prescription. By putting a little money aside each and every month for those expenses, you’ll be able to pay them right away when the bills arrive, without having to touch your emergency fund.

Of course, if an emergency does arise, your medical fund might not be able to cover it, but you might find that you can offset a good portion of the cost before having to use money earmarked for other things.

Item 4: Kid’s Clothing

Do you have young kids at home? If so, you understand the importance of planning ahead for clothing, shoes, outdoor wear, and undergarments, because, they grow so quickly. In fact, I find that the moment I don’t have money set aside for kid’s clothing, my daughters outgrow or lose some critical piece of their attire.

Now I make a plan to set aside $15 each month for clothing and, in a pinch, we can head down to the thrift store and find a replacement (and sometimes a whole wardrobe). If we don’t use it, that money accumulates from month to month and is there when it becomes necessary.

Item 5: Back-To-School/School Year

This is a lesson that I’ve learned the hard way over and again: you must have money set aside each month for back-to-school expenses and class parties, because, without a doubt, the moment you finish paying all the bills and think you are on your way to financial success, is the moment that you will find out about some great need to deliver fifteen dozen cookies to the class party tomorrow.

Back-to-school expenses are no different. It might seem like August is a long way off but, trust me, it’ll be here before you know it, and so will the need for new shoes, school supplies and whatever else your child needs to be successful in school. Plan for it now so you don’t have to worry about it later.

Item 6: Eating Out

There’s nothing I enjoy more than a night that we don’t have to cook or do dishes at home. When we have the choice, we head to Applebee’s and enjoy their Cedar Salmon with lots of French fries on the side. Do you feel the same way? If so, I highly recommend putting a line item in your budget for eating out. It might seem counterintuitive if you are trying to save money but, if you don’t put it in there, it’s likely you’ll “steal” the money from another category of your budget when you just need a night out.

We only budget enough for about one meal out for our entire family per month. Not only does it allow us the opportunity to get out and enjoy ourselves, but it makes it extra special because we can only do it once!

Item 7: Time with Friends

Do you love to spend time with friends? Does hanging out with them involve providing food on occasion, grabbing an extra six-pack of beer, or making dessert? If so, I recommend placing a line item in your budget for your time spent with friends. In our budget, it’s referred to as “game night” and I put enough money in there each month to cover one or two gatherings.

Sure, we could pull that money from our own personal spending (and sometimes we do) or the food budget, but it’s nice to know it’s there, no matter what else has happened that month. And…if the money is left over, it just carries over to the next month.

Having the “friend” budget allows us to be generous with our friends no matter what the state of the rest of our finances might be at the moment.

Item 8: Vacation

The final line item that I believe all budgets should have is one for vacations. I don’t care how much money you put into that fund each month, though you should always put some money into it. It might take you years to be able to afford the vacation of your dreams and yet, you should always make taking at least one “mini-vacation” per year a priority.

Already have the camping gear? Maybe that $10 per month you saved this year will get you a tank of gas, a pile of hot dogs, and a couple of nights at a campground.

The options are endless, so make it a priority to save for at least one vacation a year, no matter how small it might seem.

Your new Successful Budget Going Forward

And that’s that.

Do you plan to incorporate any of those categories into your budget? Did I miss a fund you already have that you couldn’t live without? What are your best tips for a successful budget? Leave me a comment below and let me know!