Having a budget in place is the key to financial success!
Have you ever started a budget without using categories? If so, I’m assuming it wasn’t easy. If you miss categories while budgeting, your entire budget will be thrown off!
Creating a budget that uses categories allows us to tell our money where to go before we even get our hands on it, which is pivotal to your success.
If you want to create a flawless budget, start using budgeting categories every month.
What is a Budget Category?
A budget category is an umbrella term for the various areas of your budget that you need to track to keep a handle on your finances.
Each of these categories has its own purpose and requires different strategies depending on your financial goals.
Each of these categories is specific to your saving and spending goals. Your budget categories will probably look completely different from your friends, or family members’ budget categories.
How do Budget Categories Work?
Budgeting by categories is a great way to keep your finances organized. Pick out your categories based on your monthly wants and needs. Then, allocate money to each category for every paycheck.
You can add new categories every pay period or remove some. We add new categories around holidays and birthdays. Once the holiday passes, we remove them from our budget until the next occasion.
Once your cash is gone in each category, you have to stop spending until you are able to replenish that category.
If you’re ready to get started with budgeting or need a place to keep track of your budget, make sure to grab our FREE budget binder printables below.
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What Categories Should I Use in a Budget
As I mentioned above, the best part of picking budget categories is that it’s completely based on your lifestyle and needs. Everyone has different wants and needs, so everyone’s categories are going to be different.
Your interests are probably completely different than mine. Therefore, your categories will be different than mine, and that’s perfectly okay.
How specific should you make your budgeting categories?
How specific you make your budgeting categories depends on how detailed and organized you want to be with your finances. You can choose to do broader budgeting categories such as:
- Bills
- Food
- Entertainment
- Gas money
- Mortgage
By using broad categories, you are able to have more control and understand where your money is going without being too detailed. For example, your bill category would cover all of your bills each month.
However, if you want to be ultra-organized and focused on tracking your expenses down to the penny, then you may want to use specific categories like:
- Electric bill
- Dining out
- Food budget
- Hobbies
- Personal spending
- Debt payments
Using these specific categories, you can accurately track your expenses and ensure that each dollar is being spent in the right place.
No matter what type of budgeting category you choose, make sure they help you stay on track with your financial goals.
95 Budget Categories List
Below, select the budget categories you deem fit for the needs of your household. Then write out your budget using the categories, making sure you account for every expense.
Remember, you can break each of these into broad categories such as utilities, home, and entertainment, or you can break things down and do subcategories as well, such as listing out each utility or bill, etc.
Utilities
1. Electricity
2. Natural gas
3. Garbage
4. Water
5. Sewer
6. Trash
7. Cable
8. Heating
9. Phone
10. Recycling
Home
11. Mortgage payments
12. Rent/ Mortgage
13. Repairs
14. HOA Fees
15. Alarm system
16. Property taxes
17. Rental insurance
18. Homeowners insurance
19. Home remodel
20. Property Taxes
21. Lawn Care/Gardening
22. Home Improvement Fund
Food Expenses
23. Groceries
24. Restaurants
25. Alcohol
26. Costco/ Sams Club
27. Coffee shops
28. Fast Food
29. Work lunch outings
30. School lunch
Household Items
31. Cleaning supplies
32. Toiletries
33. Tools
Transportation
34. Gas/ Fuel
35. Vehicle maintenance
36. Car payments
37. Oil changes
38. Car insurance
39. Tolls
40. Parking Fees
41. Vehicle registration and tabs
42. Lease on vehicle
43. New tires
Personal Care
44. Haircuts
45. New clothing
46. Salon and spa
47. Chiropractor
48. Gym membership
49. Vacations
50. Fun Money
51. Makeup/Beauty Products
52. Subscriptions (magazines, apps, etc.)
53. Co-pays/Out-of-Pocket Medical Costs
Entertainment
54. Movies
55. Babysitter
56. Makeup
57. Salon
58. Hobbies
59. Streaming Services (Netflix, Spotify, etc.)
60. Date Nights
61. Family Activities (bowling, zoo, etc.)
62 Subscriptions (magazines, apps, etc.)
Kids
63. After-school activities
64. Toys
65. School supplies
66. Allowance
67. Daycare
68. Babysitter
69. Kid’s college fund
70. School Supplies
71. Field Trips
Medical Care
72. Doctor’s appointments
73. Eye appointments
74. Urgent care visits
75. Prescriptions
76. Glasses and contacts
77. Vitamins
78. Supplements
79. Hearing aids
80. Dentist appointments
81. Health insurance
82. Dental insurance
83. Over-the-Counter Medications
84. Therapy/Counseling
Savings Account
85. 401K
86. Roth IRA
87. Mutual Funds
88.. Index Funds
89. Emergency fund
90. Life insurance
91. Debt repayment
92. Holidays
93. Health Savings Account (HSA)
94. Down Payment Fund (house, car)
95. General Savings
Budget Categories- Final Thoughts
With the right budget categories in place, you’ll be able to make sure your finances are aligned with your goals. Everyone has different financial needs, and these categories can help meet those needs. From setting aside money for travel to making sure you’re saving for retirement, having the right budget categories in place will ensure that you’re able to maintain financial security and peace of mind.
Even if you’re starting out on a budget journey or have had one for a while, it’s always important to review your current system and see what new budgeting areas might be beneficial for you.
While some parts of creating a budget can seem tedious, having all the information about your spending and income right at your fingertips makes it easier than ever to get started on managing your money responsibly and helping protect yourself against potential financial pitfalls in the future.
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If I missed a budget category that you feel is essential, let me know in the comments below so that I can add it!
Ready to Start Budgeting?
Budgeting can be overwhelming, especially if you’re just starting out. The good news is that you don’t have to figure it out alone. Our free budget binder is the perfect tool to help you get on track with your finances. Whether you’re trying to save money for a down payment on a house or trying to get rid of debt, this budget binder can help you organize your finances and stay on top of your expenses.
With easy-to-use printable templates for tracking expenses and setting financial goals, our budget binder is packed with everything you need to start achieving your financial goals. Don’t wait any longer to take control of your finances. Grab our free budget binder below and get started today!
Grab Your FREE Budget Binder Today!
Start saving more money and pay off your debt with this FREE Budget Binder
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Heidi Lyberg
Thank you so much! This has really helped!
The Pipps
Glad you found it helpful!