Pero I can do it too

Thirteen Budget Categories To Include In Your Budget

Budget Categories to include in your budget

One of the foundational steps towards financial stability is creating a budget that works for you and gives your money direction. When you create a budget that works for you, you are setting yourself up for success, and this post will help you include everything you need.


Remember, a budget is not only for jotting down numbers; it’s also about understanding your financial needs and standing.


To help you navigate this process, let’s dive into thirteen budget categories to help you better manage your finances.


1. Housing Expenses


Your housing costs will typically be the highest category on your budget. These include rent or mortgage payments, HOA dues, and property taxes.


To maintain a financial balance, it is important that your housing expenses do not exceed 30% of your salary.


2. Utilities


Allocate funds for electricity, trash, water, gas, internet, and phone bills. If the costs vary, you can choose the highest amount your bills have ever been to plan for a high bill. You can direct your extra money to a different goal if it is lower.


3. Transportation


Whether you commute or travel for leisure, transportation costs are unavoidable. Factor in expenses, such as car payments, gas, public transportation, fares, maintenance, parking, and insurance premiums.


If you’re hoping to save money in this area, perhaps carpooling can be an option for you, or using public transit to reduce your expenses.


4. Food and Groceries


Dining out often can quickly drain your funds, so let’s talk about how we can save money while still enjoying eating at your favorite places. Allocate a portion of your budget to groceries and dining expenses. Plan your meals, make a grocery list, and limit and pull purchases to stay within your budget.


You must create a grocery budget that works for you and your family. For example, if you like a certain type of food, can you prepare it at home to satisfy the craving and save money?


5. Healthcare


Health is wealth, and medical expenses can strain your finances if you’re unprepared. Include health insurance, premiums, copayments, prescriptions, medications, and funds for unexpected medical emergencies in your budget.


Create savings for your health so that you can transfer money to that savings monthly. This way, you can always be prepared if you don’t visit the doctor’s office often.


6. Debt Payments


If you have outstanding debts, such as credit card balances, student loans, or personal loans, prioritize making timely payments. Making timely payments helps your credit score payment history. One missed payment can affect you for at least five years.


Include these payments in your budget and allocate extra funds towards debt repayment whenever possible. Paying more than the minimum amount due can accelerate your journey towards being debt-free.


7. Savings and Investments


Your budget is a tool to help you with your financial stability. Building a financial safety net and planning for your future should be at the forefront. Allocate a portion of your income towards savings accounts, retirement accounts, and investments. Consider setting up automatic transfers to ensure consistent savings contributions each month.


Decide how many monthly expenses you want in a high-yield savings account. This way, you have a goal that you are working towards, keeping you motivated and focused.


8. Personal Spending


To create a sustainable budget, you must allocate money to spending on things that bring you joy, allow you to have fun, and align with your values. Allocate some funds for personal expenses and discretionary spending. Whether it’s entertainment, hobbies, or personal care, budgeting for these expenses allows you to enjoy life while staying financially responsible.


To avoid overspending in this budget category, you must set an amount for the month and commit to it. The more fun you have, the more sustainable your budget will be.


9. Emergency Fund


This budget category is important because it is how you care for your future. Unexpected expenses can arise anytime, so having an emergency fund is crucial. Allocate a portion of your budget to building and maintaining an emergency fund to cover unforeseen costs such as car repairs, medical emergencies, or job loss.


This budget category is a number one priority because it will allow you to be present and process emotions with news you receive instead of experiencing anxiety around money.


10. Pets


Are you a fur parent? If so, you may want to add this category to your budget because it can be expensive. Consider pet insurance, medicine, grooming, food, treats, dog walks, and dog sitting in this budget category.


Many fur parents forget to add this category to their budget, which may be why it shows they are going negative in their bank account. In reality, these are expenses we overlook, but the most important to add.


11. Birthdays and Holidays


Plan for birthdays and holidays because you will likely be celebrating. Whether it is a party or a gift, prepare for it well to avoid grabbing money from a separate budget category during the month.


Create savings for this budget category and send money to it monthly so that you can celebrate your loved ones without causing financial stress for you.


12. Children


Whether you are a mom or the “rich” aunty, let’s add the kiddos to the budget. Plan for back-to-school shopping, summer camps, babysitters, extracurricular activities, clothes, and fun money. Planning is your best friend, and if you are planning for camps and classes in advance, ensure the price tag is being considered.


The more you plan your money, the less stress you will experience when making the payment.


13. Miscellaneous Expenses


Finally, allocate a small portion of your budget for miscellaneous expenses or unexpected costs that may arise. This budget category is a buffer for unforeseen expenditures that don’t fit into other budget care categories.


Incorporating these budget categories will help you prepare and plan every dollar you earn. Review and adjust your budget regularly to reflect changes in your financial situation or goals. You have now covered every aspect of your needs and wants in your budget, making sticking to your budget manageable.


When we work together:


  • I help you create a budget that works for you and allows you to have fun
  • I help you set goals and add them to your budget to ensure you are meeting your money goals
  • I help you focus on being present while you prepare for your future and build your dream life


If this resonates with you, I invite you to work with me! I want to help you reach your money goals faster and experience less stress daily. Book a sales call.


I cannot wait to be part of your journey!


Leave a Reply

Orlenda Cortez

Welcome to my corner on the internet! I’m obsessed with using money as a tool because it led me to pay off $30K in consumer debt in a year and a half, helped me save $20K in nine months to have my dream wedding in Costa Rica and is helping me build the life I never saw my family experience. Now I want to help others do the same!

Orlenda Cortez
Join The Newsletter

For money tips to help you unapologetically build a life you never saw your family experience.