Having all the right budget categories can make or break it! If you forget to include certain commonly forgotten categories then you can really expect your budget to fail.
But that won’t happen to you because you found this comprehensive list of budget categories.
Related: What you need to know BEFORE budgeting (It’s why a lot of budgets fail)
What categories should I include in a budget?
This question could be answered very easily, there are 3 main budgeting categories:
- fixed expenses
- variable expenses
- non-essential expenses
In other words, you could also refer to the 4 walls of budgeting:
- food
- utilities
- shelter
- transportation
Since this is going to be a comprehensive list AND you want to make this budget work, we have to be more specific.
You can always refer back to these main categories to see which one is the highest overall.
I realize a lot of people follow the 50/30/20 rule budget which is the simplest way to categorize your budget, however this article is for those who need a more detailed yet still simple budget so you can know where your money is going.
Main Budget Categories According To Dave Ramsey
1. Income: This includes all your income sources, not just your paycheck!
- Paychecks
- Income from a small business
- Side jobs
- Freelance work
- Residual income
- Child support
Personally I keep my side hustles out of my budget completely because first they are unpredictable and I like to use the money I earn online for my “wants”.
2. Outgoing: Basically anything and everything, according to Dave Ramsey your budget should be zero by the end.
Your income and expenses should cancel each other out.
- Rent/Mortgage
- Food
- Cable
- Phones
- Gas
and everything in between are all your expenses. This way of budgeting is great for those who would benefit from the zero-based budgeting system.
Main expense categories for your budget
Those would be considered the main categories, some may change based on your personal life.
Not everyone’s budget is going to look the same! You should also be making a new budget EVERY month.
Categories you could be forgetting to include in your budget
Remember you might not use all of those categories in your budget, you need to customize it to fit your life.
Aside from budget categories you can also get help organizing your budget using budget worksheets or a budgeting App.
My favorite budget binder would have to be Erin Condren’s Deluxe Monthly Planner.
There are also plenty of Apps you can use, if you rather an App I suggest checking out Trim!
Trim is your very own personal finance assistant, you can automate your savings, get a debt payoff plan, trim will even negotiate your monthly bills to get lower rates!
If you are still having trouble there are plenty of ways to save money on a tight budget!