rewrite this title 8 Essential Budget Categories To Smash Your Financial Goals

Insurance costs extend far beyond your basic health insurance premium. Start with your health insurance–between premiums, deductibles, and out-of-pocket maximums, you’re looking at a significant monthly commitment. Many people benefit from HSA or FSA contributions to help manage these healthcare costs pre-tax.

Property insurance comes next, whether it’s homeowner’s or renter’s insurance. Don’t forget to account for any special riders for valuable items or additional coverage needed for natural disasters in your area. If you own a home in a flood-prone area, you might need separate flood insurance on top of your standard policy.

Life insurance provides crucial protection for your loved ones. Term life policies typically offer the most coverage for your premium dollar, with costs varying based on your age, health, and coverage amount. Some choose to supplement employer-provided policies with individual coverage for more comprehensive protection.

Auto insurance is another monthly cost for vehicle owners. The premium varies based on your driving record, vehicle type, and coverage levels, but you can expect to pay between $100 and $300 monthly, depending on your situation and location.

Factor in any supplemental insurance policies you carry, such as disability insurance or professional liability coverage. Remember to review your coverage annually to ensure you’re neither over nor under-insured as your life circumstances change.