Other categories, like debt, child care, or tuition, can be added in depending on if these expenses apply to you. Here are some rough guidelines you can follow for budget percentages: Having your housing costs around 25% is much more manageable. With only 25% of your income left to cover all of your other expenses, it’s not an ideal situation for you. Instead, it’s helpful to look at a rough guideline of how much to spend in each category, so you can see where your budget could use some changes.įor example, if you notice that you’re spending 75% of your income on housing- it’s probably time for you to re-evaluate your housing costs. One person could own a home and a car, and the other could be splitting their rent with a roommate while walking to work everyday.Įach of these people may have the same income, but their budget percentages will be very different- and that’s okay! It’s impossible to say exactly how much you should spend in each category, because this can vary from person to person.įor example, two people can make the same amount of money, but one could have $50,000 in debt to pay off, and the other has no debt at all. Once you know what to include in your budget, the next question you probably have is how much you should spend in each category. What percentage of your income should go to each category? You can check out our guide on budgeting by paycheck here. You get to make a plan for every dollar of your pay, and it can be easier to predict your expenses for the next two weeks than for the next month. With paycheck budgeting, you budget for every paycheck instead of just once a month. The choice is yours, but if you are struggling with sticking to a monthly budget, you should give paycheck budgeting a try! You will also need to decide how often you would like to budget- every month or with every paycheck. That means you are allocating all of your money towards something- and every last dollar is working towards your goals. With zero-based budgeting, your income minus your expenses equals zero. The budgeting method I recommend is zero-based budgeting. I recommend making a separate list of these occasional expenses and saving up for them in advance! What is the best budgeting method? Note: some of these expenses don’t happen on a monthly basis- they may only come up once or twice a year (ie. Sinking funds for planned purchases like a down payment on a home, vacations, birthdays, annual subscriptions, etc. litter, food bowls, treatsĮmergency fund for unexpected expenses, like losing your job physiotherapists, acupuncture, chiropractors Pets Re-selling items like clothes or furniture HousingĬondo or housing association fees Utilities Since there are so many different spending categories, and so many expenses that are easy to forget- Here is a list of budget categories to get you started on your budget: Income You’ll get a much clearer picture of what your spending really looks like! This can be discouraging because you’ll end up spending more than you thought you would, based on the budget you made.īy including all of your expenses in the first place, your budget will be way more realistic. If you’re forgetting some of your expenses, your budget won’t be as accurate- and not as helpful as it could be. When you’re making a budget, it’s important to know where you’re spending your money. Wondering what categories you should include in your budget? Read my disclaimers page for more information. A s an Amazon Associate I earn from qualifying purchases. I may receive a commission for purchases made through these links, at no additional cost to you. This site contains affiliate links to products. Ultimate List of Budget Categories to Start Your Budget
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