Finding a budgeting method you can stick with is the first step to achieving your financial goals. Creating a personal budget can still seem pretty overwhelming when you first attempt it. Just thinking about how to make budget categories that fit all your expenses can be time consuming and sometimes frustrating. If you set up your categories too quickly you may find that you’ve overlooked areas where you spend substantial amounts of money
On the positive side, there is no right or wrong way to construct your budget categories. You will have to tailor them to you, your lifestyle, and your spending habits. This leaves you with plenty of room for customization and improvisation.
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Common Budget Categories And What to Include
To help you get started we compiled a list of budget categories typically found in an average household budget. We also added suggestions on what you can include in each category.
| Budget Category | What to Include |
|---|---|
| Housing |
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| Utilities |
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| Food |
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| Transportation |
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| Debt & Loan Payments |
|
| Insurance |
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| Healthcare |
|
| Kids |
|
| Clothing & Personal Care |
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| Household Supplies |
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| Pets |
|
| Subscriptions |
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| Entertainment |
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| Personal Development |
|
| Charity/Donations |
|
| Savings |
|
| Other |
|
Budget Categories Printable Checklist
- A checklist to help you build your budget.
- 100+ budget categories, so you don’t miss any expenses.
- Free printable for easy tracking.
Quick Tips
Before you start setting up your budget categories, take a few moments and think about your habits and goals. These ideas are a place to start.
- Creating a budget that fits your expenses and spending habits is the key to success. Depending on your circumstances you may need to add more budget categories or adjust others. Using categories that fit your spending habits will help you stick to your budget. You can always add new ones if you come across unexpected expenses.
- Write down your expenses for the previous month before you start building your budget. This way you’ll quickly be able to see if you need all these categories in your budget and if you are missing any.
- For easier tracking, you can combine multiple categories into one umbrella category.
- One of the most common pitfalls of making a budget is leaving out a budget category that will require money at some point.
- You don’t have to stick to the same budget each month. If you know that you’ll have new expenses in a month to come, adjust your budget accordingly.
- If your budget doesn’t succeed in the first month, don’t be discouraged. Look at what went wrong and adjust your budget accordingly. Most people take some time to refine their budgets!
Free Monthly Budget Spreadsheet Template
- This simple monthly budget template makes budgeting fun and exciting.
- Easy-to-follow instructions so you can get started budgeting in no time.
- Access your budget online from anywhere. See all features
