Comments on: Personal budget categories – the key to tracking your money http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/ Proverbs 13:11 - "...he who gathers money little by little makes it grow." Sat, 21 Nov 2009 03:27:42 -0400 hourly 1 By: PHP Developer http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7554 PHP Developer Fri, 26 Sep 2008 18:42:52 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7554 Excellent article. One needs to track what they spend their money on so they will have an idea what they really need and where they are waisting their money. I have found that debt is the worst thing for a budget. Once you get your debt under control you will be in much better shape. Keeping to a budget always has it challenges! Excellent article.

One needs to track what they spend their money on so they will have an idea what they really need and where they are waisting their money.

I have found that debt is the worst thing for a budget. Once you get your debt under control you will be in much better shape.

Keeping to a budget always has it challenges!

]]> By: Green Panda Treehouse | | Weekly Round Up: Baby Shower Edition http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7553 Green Panda Treehouse | | Weekly Round Up: Baby Shower Edition Sun, 14 Sep 2008 23:06:01 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7553 [...] Personal budget categories [...] [...] Personal budget categories [...]

]]> By: Debbie M http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7552 Debbie M Tue, 09 Sep 2008 21:45:56 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7552 My indents didn't show up! The capitalized categories above are my main categories and the others are the subcategories. My indents didn’t show up! The capitalized categories above are my main categories and the others are the subcategories.

]]> By: Debbie M http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7551 Debbie M Tue, 09 Sep 2008 21:21:02 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7551 I wanted to add that even if your categories are perfect for you, you'll still need to update them over time as your life changes. I've recently added a renovation fund because I realize that I really want that and none of my other funds are big enough, and a health expense fund, because I realize that big medical expenses are one of the leading causes of bankruptcy. To answer your questions, I'll list my broad categories below (slightly different than yours) along with the subcategories I use. Housing mortgage/taxes/insurance Utilities gas + electricity/water/trash + phone cell phone + cable Food groceries eating out Personal (clothing, make up, gifts, entertainment, books, education, anything else I don't have to save up for) Savings housing and yard repairs and maintenance renovation fund transportation (gas, other maintenance, repairs, insurance) next car fund health expenses retirement long-term fun (vacations, furniture, computers, and anything else I do have to save up for) Some of these savings categories could be moved up to the other broad categories--they're more like possible future spending categories whereas the others are like probable current spending. I admit that I sometimes borrow from one savings fund to pay for something else. I recently had to increase my auto expense fund when I realized that fund had been negative for a year! Other things I don't have that more normal people might: non-mortgage debt, child-raising expenses, health and life insurance (paid by my employer), emergency fund in case of layoff (I work for the state where layoffs are unlikely), and I'm sure there are more. I like to separate out anything I'm wondering about or that I have a problem with. I have a problem with eating out. I've also seen people separate out other luxuries/hobbies such as alcohol, tobacco, video games, videos, music, sewing supplies, and comic books. I wanted to add that even if your categories are perfect for you, you’ll still need to update them over time as your life changes. I’ve recently added a renovation fund because I realize that I really want that and none of my other funds are big enough, and a health expense fund, because I realize that big medical expenses are one of the leading causes of bankruptcy.

To answer your questions, I’ll list my broad categories below (slightly different than yours) along with the subcategories I use.

Housing
mortgage/taxes/insurance
Utilities
gas + electricity/water/trash + phone
cell phone + cable
Food
groceries
eating out
Personal (clothing, make up, gifts, entertainment, books, education, anything else I don’t have to save up for)
Savings
housing and yard repairs and maintenance
renovation fund
transportation (gas, other maintenance, repairs, insurance)
next car fund
health expenses
retirement
long-term fun (vacations, furniture, computers, and anything else I do have to save up for)

Some of these savings categories could be moved up to the other broad categories–they’re more like possible future spending categories whereas the others are like probable current spending. I admit that I sometimes borrow from one savings fund to pay for something else. I recently had to increase my auto expense fund when I realized that fund had been negative for a year!

Other things I don’t have that more normal people might: non-mortgage debt, child-raising expenses, health and life insurance (paid by my employer), emergency fund in case of layoff (I work for the state where layoffs are unlikely), and I’m sure there are more.

I like to separate out anything I’m wondering about or that I have a problem with. I have a problem with eating out. I’ve also seen people separate out other luxuries/hobbies such as alcohol, tobacco, video games, videos, music, sewing supplies, and comic books.

]]> By: Joe http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7550 Joe Tue, 09 Sep 2008 17:35:50 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7550 I find that keeping categories as simple as possible is the real key to making them work. Having 15+ budget categories is just too much to be useful or to easily keep track of. That is just my opinion though, maybe someone wants 15+ categories to make a real close analysis of their spending. I find that keeping categories as simple as possible is the real key to making them work. Having 15+ budget categories is just too much to be useful or to easily keep track of. That is just my opinion though, maybe someone wants 15+ categories to make a real close analysis of their spending.

]]> By: Frugal Babe » Archive » Welcome To The 142nd Festival Of Frugality http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7536 Frugal Babe » Archive » Welcome To The 142nd Festival Of Frugality Tue, 09 Sep 2008 04:55:19 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7536 [...] Guy from Gather Little By Little writes about creating personal budget categories.  If you sit down with your spending reports to make categories, and end up with $1500 in the [...] [...] Guy from Gather Little By Little writes about creating personal budget categories.  If you sit down with your spending reports to make categories, and end up with $1500 in the [...]

]]> By: Dave http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7537 Dave Tue, 09 Sep 2008 00:17:04 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7537 I use YNAB as well and have been adding/renaming/removing categories as time goes on. I think it is important to be flexible and "roll with the punches". I forget where I read this, but someone wrote that when budgeting, if you want to track it, create a category/sub-category for it. I have a few annual expenses like AAA membership. I could add that to the default subscriptions with all my others, but I like to keep the yearly fees their own so I can track them better. I also have different savings categories that I put money into each month. For instance, I have a vacation fund where I put $25-$50 in a month. For me this is easy to follow and manage each day and month. Like glblguy said, keep your budget simple and easy to use. I use YNAB as well and have been adding/renaming/removing categories as time goes on. I think it is important to be flexible and “roll with the punches”.

I forget where I read this, but someone wrote that when budgeting, if you want to track it, create a category/sub-category for it. I have a few annual expenses like AAA membership. I could add that to the default subscriptions with all my others, but I like to keep the yearly fees their own so I can track them better.

I also have different savings categories that I put money into each month. For instance, I have a vacation fund where I put $25-$50 in a month.

For me this is easy to follow and manage each day and month. Like glblguy said, keep your budget simple and easy to use.

]]> By: Blake@youngdough http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7538 Blake@youngdough Mon, 08 Sep 2008 16:12:50 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7538 I have a fun/recreation category in my budget- and I absolutely love it. I know exactly how much money I can spend on whatever the heck I feel like, without feeling a twinge of guilt that it could be used elsewhere. It really helps me to embrace my budgeting. Good post! I have a fun/recreation category in my budget- and I absolutely love it. I know exactly how much money I can spend on whatever the heck I feel like, without feeling a twinge of guilt that it could be used elsewhere. It really helps me to embrace my budgeting.

Good post!

]]> By: Mallory http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7539 Mallory Mon, 08 Sep 2008 15:15:52 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7539 Nice post! I am about to be out of school so I haven't personally gotten to start my own budget but when I do in a couple months, I am definitely going to start with these broad categories you suggested. We talked about personal budgets today in our blog at http://wherefamiliesconnect.com/2008/09/08/determining-your-unique-budget/. We were talking about how it's really hard to look at samples of other people's budgets because everyone's spending is different. Using these categories is a great way to start! Nice post! I am about to be out of school so I haven’t personally gotten to start my own budget but when I do in a couple months, I am definitely going to start with these broad categories you suggested. We talked about personal budgets today in our blog at http://wherefamiliesconnect.com/2008/09/08/determining-your-unique-budget/. We were talking about how it’s really hard to look at samples of other people’s budgets because everyone’s spending is different. Using these categories is a great way to start!

]]> By: Lazy is the Real Mother of Invention : BorrowFromNone.com http://www.gatherlittlebylittle.com/2008/09/personal-budget-categories/comment-page-1/#comment-7540 Lazy is the Real Mother of Invention : BorrowFromNone.com Fri, 05 Sep 2008 12:05:20 +0000 http://www.gatherlittlebylittle.com/?p=1020#comment-7540 [...] are some good tips on getting started with a budget (@ Gather Little By Little [...] [...] are some good tips on getting started with a budget (@ Gather Little By Little [...]

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