Many budgeters include dining out in this category (e.g., restaurant meals, work lunches, food delivery, etc.) Groceries, of course, are an essential expense for every family.
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Typically, this budget category includes car payments, registration and DMV fees, gas, maintenance, parking, tolls, and public transit. Regardless of your location or lifestyle, everyone needs to get from point A to point B.
For most budgeters, this category is by far the biggest. That includes rent or mortgage payments, property taxes, HOA dues, and home maintenance costs. Housing (25-35 percent)Īnything you pay toward keeping a roof over your head is considered a housing expense. Your disposable income is what you have available to spend on your home budget categories: housing, transportation, food, utilities, insurance premiums, and other essential costs. Assembling Your Home Budget Categories The Essential Budget CategoriesĪll monthly budgets start with your disposable income-the money you take home from your paycheck after taxes, retirement savings, and other deductions. It also offers suggestions for how much of your income you should devote to each category.
This guide reviews a list of budget categories found in a basic household budget. Once you’ve identified your basic budget categories, you can start allocating your spending based on your unique financial situation. The first step involves breaking down your regular expenses into budget categories to get a clear picture of your spending patterns (including areas where you tend to overspend). A well-thought-out budget can help you take control of your finances and use your money with purpose, so you have enough to pay your bills, grow your savings, and still enjoy life today. At its most basic, a budget is really just a plan for your money.