Disclaimer: In the name of full transparency, please be aware that this blog post contains affiliate links and any purchases made through such links will result in a small commission for me (at no extra cost for you). As an Amazon Associate I earn from qualifying purchases. I am not a finance expert. Anything written here are just personal experiences and my own opinions.
Have you ever wanted to get your finances under control? Thought about how to create a budget and then you didn’t know where to start? Well, I am here to help.
I have had a budget for as long as I remember and it is my number 1 way to effectively manage my money. If you are looking for some other great ways to effectively manage your money, check out my post on How to Save by Separating Your Bank Accounts.
Where do I start?
First, I recommend going through your last month of spending and look at the different stores and businesses that you have spent money on. For instance, those Amazon purchases that always seem to sneak in there, make sure to account for those :). This way once you start to pick your final categories you will have an idea of where you spend your money and which categories to include.
A Complete List of Categories to Help Create a Budget
- Housing costs (mortgage and rent)
- Home/Renters insurance
- Utilities (Water, electric, gas, trash, sewage)
- Gas/Public transport
- Car Payment
- Streaming (Those Nextflix, Hulu, Disney+, etc. charges start to add up!)
- Clothes (Make sure to use Rakuten to save more when online shopping!)
- Gifts (birthdays, anniversaries, donations)
- Kids allowance
- Car insurance
- Student loans
- Personal loans/ credit card payments
- Music (Remember that Apple Music subscription you signed up for?)
- Gym membership (Looking for a great gym alternative? Check out my Peloton Hack)
- Health insurance
- Child care
- Self Care (hair, nails, massages)
- Pet food and supplies
- Kids sports fees
- Home improvement – check out my affordable home DIYs
- Savings account – Make sure you set aside money in your budget for saving! If you don’t have an emergency fund – get one! Check out how here!
Ok, so now you have gone through your finances, you have seen what categories are out there, and you want to make that budget. Hold on to that. Start writing down your budget categories and how much you think you will need to attribute to each. Next week I will go in depth on how to set up a budget. In the meantime, check out Separating Your Accounts to Save More! Make sure to subscribe below so you don’t miss it and happy penny-pinching, friends!