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Creating a budget is such an important step in learning how to manage money. Once you’ve decided to create a budget, you’ll want to make sure you include all your budget categories. Missing one category can throw off your budget.
I know it can be tough to create budget categories when you are just starting. But your budget won’t work properly if you don’t add all your personal budget categories to your budget.
Make sure to start your budget off right. Take some time to think about your spending categories. I recommend you monitor your spending for at least a month to get your budget categories nailed down.
If you need an expense tracker to do this, you can download the free printable I made below. This will allow you to track your expenses and see how much you should allocate for each spending category.
Now, I’m going to help you by sharing some of the best personal budgeting categories to add to your budget.
Make sure you read 4 Money Managing Tips to Financial Success and How to Create a Good Budget.
Looking for somewhere to keep track of your budget? Use a free budget template or a freeonline budget tool.
Budget Category Printable
I made this monthly expense tracker printable so you can use it to set up your spending categories. If you don’t have your categories set up, print this expense tracker, and track your spending for one month.
Once the month is over, you can add up how much you spent in each category. This will help you set up your budget. This is the color version but the download includes a black and white version as well.
Click this free monthly expense tracker printable link to get your free budget printable.
Personal Budget Categories
I’m going to share some of the best spending categories below. Please keep in mind that you don’t need to make a category for these items if you don’t need them. This is just a guide to help you think of budget categories you may have overlooked.
Income Budget Categories
- Paycheck
- Extra Income
- Bonuses
- Tips
- Gifts
Giving Budget Categories
Blessing others is a really important part of a budget. Being able to give is a blessing all the way around.
- Tithing
- Charities
- Medical Research
Food Budget Categories
We know that food is a necessity in life. It’s important to keep track of the little things like a quick run to the store to get milk. Little purchases can add up quickly.
- Groceries (you can learn to use coupons to help with this expense)
- Eating Out (Restaurants)
- Pet Food
12 Tips to Save Money On Groceries
Housing Budget Categories
It’s important to have a roof over your head to survive. Make sure that your housing expenses don’t take away from the other necessities in life. If your housing budget is high, you may consider downsizing to something more comfortable.
- First Mortgage
- Second Mortgage
- House Insurance
- Rental Insurance
- Property Taxes
- Rent
- Home Repairs
- Yard Care
- Home Owner Association Dues
Utilities Budget Categories
Utility categories can vary. For example, our trash and sewer are included in our property tax bill. I just added everything to make sure you get every personal budget category covered.
- Water
- Electricity
- Natural Gas
- Propane (Don’t forget to include the propane for your propane fire pit in this category.)
- Trash
- Sewer
- Cable/Streaming Service
- Internet
- Phone
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Clothing Budget Categories
We are tight on our budget for clothing but it still needs to be included in our budget.
- Adult Clothing
- Children Clothing
Transportation Budget Categories
Driving a car can be a big expense. Even though you won’t need new tires every month, make sure to put a little bit away each month if you need to save for tires.
- Fuel
- Tires
- Car Insurance
- Oil Changes
- DMV Fees
- Maintenance Fees
- Parking Fees
- Repairs
- Taxi/Bus/Train Fees
- Road Side Assistance
Medical Budget Categories
Our health is really important. Co-pays and deductibles can add up quickly.
- Health Insurance Payments
- Dental Insurance Payments
- Eye Insurance Payments
- Doctor Appts
- Dental Appts
- Medications
- Medical Devices
More Budget Items
These are categories related to family needs or wants. Some of these items may already be included in your grocery budget. If they aren’t, make sure to include them separately.
- Life Insurance
- Child Care
- Haircuts
- Salon Services
- Cosmetics
- Toiletries
- Misc.Household items
- Postage
- Gym Memberships
- Education
- Dry Cleaning
- Subscriptions
- Child Support
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Recreation Budget Categories
We love to do extra activities if our budget allows it. Here are some fun things we like to do.
- Movies
- Concerts
- Vacations
- Parties
- Hobbies
Debt Budget Categories
Getting debt paid off will increase your spending in other areas. Make sure to allocate as much to this area so you can get it paid off.
- Credit Cards
- Home Equity Loans
- Student Loans
- Personal Loan
Saving Budget Categories
Savings should be an important part of your budget. Make sure you put money in a savings account for emergency purposes.
It is also important to have a retirement plan. There’s always talk of Social Security disappearing. It’s recommended that you save for retirement to ensure you will have something when you retire without relying on government assistance.
- Emergency Funds
- Investments
- Retirement Plan
- Birthdays
- Christmas
- College Savings
Did You Miss Any Spending Categories?
Hopefully, this helped you decide on your budget categories. Making adjustments to your budget will happen and that’s ok. Just make sure you are running your budget and it’s not running you!
