If you’re someone who is looking for a method that you can easily maintain, then use a simple budget and keep the budget categories to a minimum.Ĭreating a budget is not a one-size-fits-all thing. If you’re a detail-oriented person who loves spreadsheets, then get as granular as you’d like. It’s better to make progress doing anything rather than map out the perfect budget process but be so overwhelmed that it doesn’t end up geting done. The first thing to consider is what level of detail you are willing to commit do. What categories should I include in my budget? Budgeting is the #1 skill in personal finance.Step 3: Track your spending in 3 budget categories or less + Track your net income.What comes after fixed, flexible & net worth?.Step 1: Fixed, Flexible, Net Worth Building – Simple Budget Categories.The Family Budget Expert 3 Step Budgeting Process.What categories should I include in my budget?.Which strategy works? Well…both will work. If you’re just starting or have had trouble budgeting, DEFINITELY start with a short list of budget categories. Now the question is, “How detailed should I get?”

It will help you figure out where the areas of overspending are coming from and give you the awareness to make positive changes in your spending. The purpose of budgeting is to improve your spending habits so you can have more money left over at the end of the month.īudget categories are the meal logging of personal finance. While the goal of monitoring your eating is to get to your ideal weight. Tracking your spending will have the same effect. Then I used that info to make some changes, and I lost 10 pounds in 5 weeks! That process helped me identify where my calories were being eaten. Nothing, and I mean nothing, I at after 8pm was helping my cause. Most of the extra calories came in the form of 50 extra here and there throughout the day, but it added up. It wasn’t until I started tracking it that I was able to figure out ways I could improve. The first thing I noticed is that I had wildly underestimated the calories I was eating. (What does this have to do with family budget categories? I’ll get there.) To figure it out, I started tracking what I was eating. I didn’t know why I wasn’t losing those last few pounds, because I thought I was eating ok. Have you ever been surprised by your credit card bill at the end of the month? You thought you were doing fine, but then “Wham!” you see the actual number and are totally surprised by it.

Monthly household expenses list