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Once you say the word budget it seems like the energy in the room disappears, but a budget is not a bad thing it gives you the ability to pay for everything you need and everything you want.
Having a budget helped me pay off over $50K in debt and fund my emergency fund, but it has also allowed me to do things I love like travel.
One of the points of frustration when creating a budget is trying to remember what you actually pay for each month and something or a few things always gets left off in the first draft of the budget. Instead of making the process difficult I have created a list budget categories to help you create your budget with ease.
When creating a budget always start with an estimate of the amount of income you expect to receive.
Income
Salary (after-tax)
Side Hustle Income
Child Support (income)
Bonus
Part-time Job Income
Investment Income
Rental Income
Other Income
I believe in paying yourself first so if you build it into your budget you will not have to worry about not having anything left to save.
Savings
Emergency Fund Savings
Extra Debt Payment
Long-term Savings (goal based)
Short-term Savings
College Saving
Travel Fund
Wedding Fund
Birthday Fund
Gift Fund
Health Savings Account Contributions
Flexible Spending Account Contributions
401K Contributions
IRA Contribution
It’s essential to keep a roof over your head so below are expenses that are related to maintaining housing. Even though the last 3 can be considered lifestyle expenses, I still wanted to include them with housing.
Housing
Mortgage
Rent
HELOC
Homeowners Insurance
Rental Insurance
Personal Property Insurance
Home Repairs
Home Maintenance
HOA Dues
Lawncare
Alarm System
House Cleaning
Yes, you should include giving into your budget, it just makes life easier. I’m never caught off guard when that tithe check clears.
Giving
Tithe
Offering
Charitable Gifts
Fundraisers
These are all the things that make living in your home comfortable.
Utilities
Water/Sewer
Electric
Natural Gas
House/Cell Phone
Cable
Internet
Trash
Household Items
Air/Water Filter
Paper Products
Printer Ink
Printer Paper
Cleaning Products
You have to eat, let’s set a goal for how much you expect to spend on groceries. I include kid’s lunch for those who pay for their children to each lunch at school.
Food
Groceries
Kid’s Lunch
Baby Formula/Food
Restaurants
You have to get to work so here are all of the cost associated with it.
Transportation
Auto Gas
Auto Repairs
Auto Maintenance (Tires, Brakes, Oil Change, etc.)
Parking
Property Taxes
Registration
Inspection
Parking Tickets
Toll Fees
Driver’s License Renewal
Public Transit
Taxi/Uber/Lyft
Auto Insurance
Motorcycle Insurance
For all my pet lovers they’re cute but they cost money too.
Pets
Pet Food/Treats
Pet Insurance
Pet Supplies
Pet Medical Fees
Pet Toys
This is one of those categories that no one wants to pay for but we need it.
Medical & Insurance
Life Insurance
Health Insurance
Long-term Care Insurance
Medical Co-pays
Dental Insurance
Dental Co-Pay
Medical Insurance
Prescription Co-Pay
Optometrist Co-Pay
Disability Insurance
Medical Devices
Personal Property Insurance (jewelry, computers. etc)
Repaying debt is an important part of reaching your financial goals.
Debt Repayment
Car Payment
Student Loan Payments
Credit Card Payments
401K Loan
Personal Loan Payments
Federal/State Taxes owed
If you’re like me these are the things you don’t mind paying for
Lifestyle
Entertainment
Netflix
Hulu
Amazon Prime
PlayStation Vue
Gym Membership
Audible
SiriusXM
Fun Money
Clothing
Shoes
Hair Care
Nails
Eyebrows
Cosmetics
Toiletries
Laundry
Dry Cleaning
Last but not least, the kids. They have a lot of expenses attached to them, the best thing I have ever done was add most of the categories below to my budget.
Kids
Daycare/Afterschool
Private School Tuition
School Transportation Fees
Club Dues
Extracurricular/Sports Activity Fees
Field Trip Fees
College Tuition
School Textbooks
School Supplies
Kid Allowances
Standardize Testing Fees (SAT/ACT)
School Uniforms
Child Support (paid)
Hopefully, these categories will help you when creating your budget. If you have a category you would like for me to add to the list, let me know in the comments below.
