You can also use this budget category to pay down any high-interest debt you’re carrying, such as credit card bills, personal loans, or student loans. This is separate from your retirement account, which is a long-term plan to support you during your golden years. Without an emergency fund, you may find yourself in dire straits if you get blindsided by an unexpected medical expense, car accident, or sudden job loss. Although saving money doesn’t have much impact on your day-to-day life, it has everything to do with your financial health down the road.Īt a bare minimum, every family should have an emergency fund earmarked for unexpected expenses as well as a retirement account such as a 401(k) or IRA. This often-overlooked (or underfunded) home budget category is arguably the most important. Saving, Investing, & Debt Payments (10-20 percent) If you decide to split up your insurance into each separate home budget category, remember to include your health insurance premiums here too.
Your utilities category should cover all the expenses that keep these services up and running. Water, electricity, and HVAC (heating, ventilation, and air conditioning) are vital to practically every well-functioning household. The basic idea behind your budget categories is to split them up so you can see what you really need to spend separately from what you’re choosing to spend. However, if you’re someone who tends to spend a significant amount of money on things like gourmet food and wine, you might want to put your non-grocery food expenses into one of the non-essential categories. Many budgeters include dining out in this category (e.g., restaurant meals, work lunches, food delivery, etc.) Groceries, of course, are an essential expense for every family.
#Personal budget chart registration
Typically, this budget category includes car payments, registration and DMV fees, gas, maintenance, parking, tolls, and public transit.
Regardless of your location or lifestyle, everyone needs to get from point A to point B. For most budgeters, this category is by far the biggest. That includes rent or mortgage payments, property taxes, HOA dues, and home maintenance costs. Housing (25-35 percent)Īnything you pay toward keeping a roof over your head is considered a housing expense. Your disposable income is what you have available to spend on your home budget categories: housing, transportation, food, utilities, insurance premiums, and other essential costs. Assembling Your Home Budget Categories The Essential Budget CategoriesĪll monthly budgets start with your disposable income-the money you take home from your paycheck after taxes, retirement savings, and other deductions. It also offers suggestions for how much of your income you should devote to each category. This guide reviews a list of budget categories found in a basic household budget. Once you’ve identified your basic budget categories, you can start allocating your spending based on your unique financial situation. The first step involves breaking down your regular expenses into budget categories to get a clear picture of your spending patterns (including areas where you tend to overspend). A well-thought-out budget can help you take control of your finances and use your money with purpose, so you have enough to pay your bills, grow your savings, and still enjoy life today. At its most basic, a budget is really just a plan for your money.
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