Your guide for the categories to be included in each budget

If your salary disappears as soon as it comes to a budget can help.

You can think of a budget as a plan for your money: when it comes to your bills, savings goals and expenses, each profit says where each profit will put.

Review your spending habits, savings goals and financial obligations to create a budget that works for you. Budgets are not compatible with one-dimensional – all of the lines you entered depend on these factors. However, you can not start from scratch, or can give a useful starting point to consult a list of common budget categories.

Read to learn what categories you want to add, the total subcategories and line items you want to add.

To work for your budget, you must be sure that you include the three main types of cost categories: needs, wishes and deposits. The ratio of your budget dedicated to each of these three areas may vary according to your situation, but Rule 50/30/20/20 It’s a good place to get started. This rule says that 50% of your income is 50% of the need, 30% goes towards the requests and goes to 20% savings, investment and additional debt.

• Need: This includes both Fixed and changeable costs It is important for daily life such as housing, transport, groceries, clothing, medications and minimum debt payments.

• WANTS TO: These are arbitrary purchases – things you enjoy, but financial emergency will not necessarily meet. They can help you to join your gym membership, concert tickets, food and subscription.

• Savings: Deposits include short and long-term deposits, investments and debt payments outside your minimum monthly payment.

When providing a frame to organize your budget of these three categories and 50/30/20, you probably want to be more granny with subcategories and specific expenses.

The following list of the costs of the total budget categories, subcategories and line items. Although these items can apply to most people, they will not apply to everyone. Feel free to ignore these line items or subsections inappropriate. For example, if you do not have children, you do not have to include childcare expenses in your budget.

The flip side cannot include everything you spend on this list. Review your bank while creating your budget and Credit card statements This list does not include this list to capture any cost.

Although it can change depending on your situation, the needs should take about 50% of your total budget. For example, if you have young children in the day, you can spend more than 50% of your earnings to pay these high costs.

Enter the following subcategories and line items (those you belong to you) when setting up your budget needs:

• Internet

• Telephone

• Electric

• Gas

• Irrigate

• Sewerage

• Rubbish

• Merchant

• Delivery services for food

• Day care, nanny, nanny, etc.

• Supply

• Laundry

• Tools and open / gardening supply

• Pet and supplies

• Know the bills

• Hair cut

• Toilet items

• Various

• Credit cards

• Personal credit

• Car loan

• Other loans

By the Rule 50/30/20, one-third of your budget is requested or Consideration spending. Some may be lightly visible to this category, but to spend the “fun” installed and helps you stick to your budget for the long term.

Remember that if your important expenses are temporary or saving towards a big goal aggressively, you may need to return an arbitrary spending.

There are most rooms for comfort in the requests category. Start with below subcategories and line items, but add any expenses you enjoy spending money.

• Tear down

• Shows and concerts

• Sports events

• Subscriptions

• Hobby supply

Finally, the deposits make up the last 20% of your budget. This category includes savings for basic shopping, short-term savings goals and long-term targets such as demolition. This includes any investment like any additional money you want to throw 401 (k) or owe (outside the minimum payments).

You can add the following costs to your savings category:

• Student loans

• Personal loans

• Credit card debt

• Furniture

• Electronics

• Strike

When giving you an idea of ​​how you can organize your budget this list, you can organize the most meaning to you. For example, if you consider eating regularly and consider necessary, you can use the needs (entertainment) needs (entertainment).

If you have an idea of ​​entering cost categories now included in a budget, you can start building yourself. Although there are countless ways to build your individual budget, the following steps evaluate the overall process:

1. Follow your expenses. As mentioned above, you need to know where your money goes every month before setting up your budget. When scanning your monthly expenses and ignore random expenses – as insurance premiums and car repair – not part of the cost of each month.

2. Classify your purchases using 50/30/20 rule. Once you have a comprehensive list of purchases, you can classify them with their needs, desires and deposits. This framework will help you be sure that you are inaccurate when saving for long-term goals.

3. Evaluate monthly costs for each category, subcategory and line item. Understand how much you spend on average for each line element. If you have to guess, high target – is better assessment of assessing your spending.

4. Disconnect your post-tax income in categories, subcategories and line items. For example, if you earn $ 5,000 after taxes, you have about $ 2,500 to the category of needs.

5. Make adjustments if necessary. If your expenses are higher than your income, you have to make some adjustments. You can not be necessary or remove the categories you want or cut your expenses. Please note that you can always adjust the size of 50/30/20 to adjust your needs better. For example, if your housing costs are especially high, you can use the model 60/20/20/30/30/10.

6. Follow your expenses. It is useful if you only use a budget. This means tracking your costs and agree with your budget. This allows you to store signs and adjustments when needed in your expenses and savings goals. Do it using your hand or using a Budget app.

Don’t be afraid to change things if your initial budget doesn’t work. Some people prefer more comfortable budgets with hyper specific categories and line items, others. There is no right or wrong way to the budget, so choose the method and categories – it works for you.