A Complete List of Budget Categories You Need to Consider

So, you want to create a budget. You may think you know everything you need to know about budgets. You probably do not. You may understand that you need to create a budget to track your spending. You probably know that you cannot control your spending if you do not know where you are spending money. It is a great start to have an idea in your head of how much money you want to spend, but that is only the first step.

You need to create a plan so that you can track it. You need to create goals so you have something that you can measure. There are budget categories that you need to consider when creating your budget. You do not need to have every category in your budget if they are not an area where you spend money. In order to understand what makes sense for you, you need to have a clear understanding of all the categories. 

A Complete List Of Budget Categories You Need To Consider

There are many different types of budgets for you to consider. There is not only one type of budget. To find the personal budget that will work best for you, you need to consider your interests. If you like details, then a deep in the weeds detailed budget is the one that work best for you. Perhaps, you want short and simple; then the 50/30/20 budget is best for you. Maybe you are more in the middle, and a simple list budget is best. Let us take a good look at the different budget categories in an effort to determine which style is the right one for you. 

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50/30/20 Style Budget

This is the simplest of all the budgeting methods. With this method, there are three major budget categories. These categories are needs, wants, savings, or debt. 50 percent of your income per month goes to your needs. 30 percent of your income goes to your wants, and the other 20 percent goes to debt and/or savings. Your needs are items that you need to live, such as a mortgage. If it is an item that you do not need to live, such as a bike that you use for recreation, then it is a want. Anything that does not fit into the first two categories is debt or savings. You may not be able to control the items in your need category, but you can control how much you spend on the want category. 

Simple List Budget

Perhaps the 50/30/20 method is just too simple for you. There is another method that includes 12 budget categories instead of only three significant distinctions. 

These top 12 are:

Housing These are the big budget categories. You cannot start a budget without considering your income.

Food This category includes all food items, no matter where you get them. This could include grocery store trips and eating out.

Transportation This category includes any costs to getting around the place you work and live. Transportation may include gas, car payment, car maintenance, or public transportation. It may also include storage costs for your vehicle. 

Health This includes all health insurance costs, personal care, and any other medical and health costs.

Kids This covers any costs that are associated with your children.

Recreation This is a broad category that includes travel, streaming services, and other fun activities. 

Gift Giving This includes personal gifts and charitable gifts.

Clothes

Pets

Technology

Fees This may include professional fees, legal fees, and financial fees.

Building Worth This includes your plan for savings and paying off debt. This category also includes any investments you have. 

Detailed List Budget

If you want to make sure you cover all of your budget categories, you should consider a detailed list for your budget. This detailed list is an expansion of the categories mentioned above. This list is massive, but that does not mean that every category has items in it that you need or have to budget. 

Income / Housing / Home Services / Utilities

These are the big budget categories. You cannot start a budget without considering your income. You are not able to understand how much money you can spend and save until you know how much money you have. The income category includes any way you bring in money. 

Housing is a category that is also important because it covers making sure you have a place to live. It also includes costs associated with having a house in which to live. 

Home Services includes all the areas that take care of your house.

Income

• Salary
• Self-employed income
• Bonus or tips
• Tax refund
• Gifts received
• Alimony received
• Child support received
• Rental income
• Dividend income
• Interest earned

Housing

• Mortgage (or Rent)
• Homeowners association
• Homeowners (or renters) insurance
• Property insurance
• Home repairs
• Property taxes
• Home improvement
• Furnishings

Home Services

• House cleaning
• Lawn care
• Security system
• Pest control

Utilities

• Power and Heating
  / Cooling your house
• Landline
• Mobile phone
• Internet services
• Trash / Recycling
• Water / Sewer

Household Items / Food / Transportation / Medical 

These categories and subcategories center around needs for you and your home. You need to maintain your house and your car if you have one. You need food and medical care. 

Household Items

• Cleaning / Laundry supplies
• Tools
• Toiletries
• Postage
• Furniture
• Home decorations
• Pool supplies

Food

• Groceries
• Fast food / Snacks
• Coffee
• Breakfast
• Lunch
• Dinner
• Drinks

Medical and Health Care

• Insurance
• Health
• Dental
• Vision
• Prescriptions
• Vitamins
• Supplements
• Medical Bills
• Doctor
• Dentist
• Hospital
• Chiropractor
• Optometrist
• Glasses
• Contacts
• Pest control

Transportation

• Car payment
• Car insurance
• Gas
• Maintenance / Repairs
• Registration
• Public transportation
• Ride sharing
• Tolls
• Parking Fees
• Roadside Assistance

Insurance / Children / Pets / Services 

These categories include insurance that is not health related. They also include children and pets, which are expensive and have needs just as you do.

Insurance

• Life Insurance
• Disability Insurance
• Long-term Care Insurance
• Umbrella Policy
• Identity Theft

Children

• Tuition
• Daycare
• Babysitter
• Baby Needs
• Summer Camp
• School Activities
• School Supplies
• School Lunches
• Lessons (sport/music/art)
• Allowance
• Toys
• Child support (paying it out)
• Kids clothing

Pets

• Veterinarian visits
• Food
• Medication
• Toys
• Accessories
• Grooming
• Pet Insurance

Services

• Streaming Service (such as Disney+)
• Amazon Prime
• Music (such as Pandora)
• Sports TV subscription
• Other subscription services
• Magazines
• Professional Society Fees

Clothes / Personal Care / Development / Fees

This set of categories include personal care items, clothes, and fees. These categories are important because while you need clothes, you may want clothes you do not need. It is important to understand the difference. It is important to make sure you are not blowing your budget on clothes you do not need, just because you can defend the fact that you need to wear clothes.

Clothes

• Work clothes
• Athletic clothes
• Leisure clothes
• Alterations
• Dry cleaning
• Shoes

Personal Care

• Grooming
• Haircuts
• Hair coloring
• Hair products
• Eyebrows
• Waxing services
• Cosmetics
• Nail salon
• Massages
• Spa services
• Facial
• Gym membership
• Fitness classes
• Accessories
• Home gym needs
• Counseling/therapy

Development

• Books
• Life coach
• Conferences
• Online cources
• In person courses

Fees

• Financial advisor
• Lawyer fees
• Tax professional
• Business consultant

Recreation / Gifts / Travel / Technology

This category includes all the fun stuff. These are definitely wants and should not be put first in your budgeting. We all need to have fun. It is important, but we cannot fail to pay our mortgage because we spent that money on traveling.

Recreation

• Entertainment
• Movies
• Concerts
• Sporting Events
• Hobbies
• Parties
• Books
• Music

Gifts

• Birthday gifts
• Wedding (shower) gifts
• Anniversary gifts
• Baby (shower) gifts
• Teacher gifts
• Service person gifts
• Thank you gifts
• Holiday gifts
• Special occasions
• Charity/Donations
• Tithing
• Community
• Political
• Non-cash donations

Travel

• Vacation
• Family Trips
• Wedding travel
• Souvenirs
• Baggage fees
• TSA Precheck or Global Entry

Technology

• Mobile phone
• Computer
• Accessories
• Home Speaker System
• Wi-Fi
• Mesh System / Extender
• Smart Home
• Gaming System
• Accessories

Savings / Debt Resolution 

This category is a big one and one you should focus on before you focus on your wants. It is important to be as debt free as possible. You also want to save as much money as possible. Even when you think you have enough money saved, you may want to save just a little more.

Savings

• College
• Retirement
• New car
• Health Savings Account
• Emergency Fund
• Brokerage Investments
• IRA
• Down Payment

Debt Resolution

• Credit Cards
• Student Loans
• Medical Bills
• Personal Loans
• Car Loan
• Taxes
• Other Bills

Conclusion

Budgets are critical to meeting your financial goals. There are a ton of categories, and it can become overwhelming. You do not have to try to figure it out on your own. It does not have to be scary. It can be gratifying once you start the process.

Check out the Goalry mall platform to find ways to help you with your budget. We can help you figure out which budgeting plan and method is best for you. We give you advice and help keep you on track. Even better we offer a daily budget app that is super easy to access and use. You have everything you need at your fingertips. You are armed with the knowledge of all these budgeting categories and once you visit Goalry, you will be all set.