The first thing you should never remove from your budget is money for savings. Putting aside even the tiniest sum of money can make a huge difference in the long run, whether it’s an emergency fund or investments.
Second, make sure you have sufficient health insurance coverage. Even if you are young and healthy now, it’s important to think about your future self when making this decision.
Third, make sure you are actively repaying your debt. This means having a plan to pay down student loans, credit cards, and other high-interest debts as quickly as possible.
Fourth, buy life insurance if you have dependents. This means spouses and children, which most people can understand but don’t forget about parents or other relatives that rely on your income to survive!
Fifth, don’t spend your entire budget on the first few months of the year. This is a mistake many people make when they receive their yearly pay increase.
Finally, don’t forget about groceries either. For many people, this is the biggest expense after rent, so it’s vital to know what you can afford on a weekly basis.