Personal budget sample guide categories how to#

These are expenses worth checking a few times a year, but generally, they aren’t expenses you can impact with your daily behavior.

The electric bill and cell phone bill go under “Bills”. While you need groceries and gas, you can also manage these expenses as needed by being mindful. Place daily or frequent expenses like groceries under ‘Living Expenses,’ so you can actively manage them. These tips are based on years of helping thousands of people select the best budget categories for their situation: Start Simpleīegin with broad categories like ‘Bills,’ ‘Living Expenses,’ and ‘Discretionary Spending.’ You don’t need a separate category for every little expense. Learn more → 4 Tips on Budget Categories from Tiller Tiller gives you complete control of naming, editing, and deleting your categories, category groups, and tags. Plus, you’ll likely want to edit your categories as your financial situation changes over time. You should customize your categories to your specific financial situation, goals, and way of thinking about money. Likewise, some services like Empower limit your total number of categories.ĭon’t settle for one-size-fits-all approach. Unfortunately these categories are not fully editable.įor example, Mint doesn’t allow you to delete or rename top-level categories. Personal finance apps include a list of suggested categories to get you started.

Personal budget sample guide categories how to#

How to Choose Your Budget CategoriesĬhoosing meaningful budget categories is your first step toward understanding and controlling your finances. Make real-time adjustments to your spending: If you notice you’re overspending in one category, you can make immediate changes to prevent future financial strain.Ĭatch fees, subscriptions, and fraud: Categories help you discover recurring payments and unexpected fees you might want to contest or cancel.Īchieve your financial goals: Whether it’s paying off debt or saving for a vacation, budget categories help you set and stick to financial goals. Prioritize expenses: Categories help you allocate funds to essentials like housing and healthcare, ensuring that your money is used effectively. For instance, you might find you’re spending too much on dining out and not enough on savings. Identify spending patterns: Knowing where your money goes each month can be eye-opening. The Benefits: Why Budget Categories Matterīudget categories provide a structured way to see your income, spending, and transfers, so you can make informed decisions about your money.īut they’re more than just labels they are tools for financial clarity.