![]() ![]() When you budget, you need to know how much you have to work with. But we will go over it here to help you get started Know your Income The basic steps for creating your budget, whether super detailed or with simple categories is just about the same. Retirement Saving (401(k), Roth IRA, etc.)įully Funded Emergency Fund (at least 3 months of living expenses)Īnd really anything else your heart desires. Dave Ramsey recommends $1000 to start.Īfter debt is paid off you can work on things like: You should have a starter emergency fund to help cover any small emergencies while paying off debt. Once you are out of debt, you can work more in saving more aggressively. Everything else though….Įxtra Debt Payments (work that debt payoff plan!) Savings We already accounted for the car payment in Transportation, and the mortgage in Housing, so we won’t double count those and put them here too. If you are working on paying off debt, it needs to be included in your simple budget. You might use this category for unexpected things like: It doesn’t have to be a large amount each month, but you need it. How does it do that? This is the one that you use for any small, unexpected expense. This is the category that will help you stay on budget every month. I don’t care what kind of budgeting system you use, you need a Miscellaneous category in your budget. Kids Extra Curricular Activities Miscellaneous ![]() ![]() Medical Insurance (If you pay for private insurance) Subscriptions (Netflix, Hulu, Amazon Prime, Magazines, subscription boxes) Some things in this section might include: This category is basically a catch all for paying for other living expenses. Household items (laundry detergent, dish soap, toilet paper, diapers, etc) If it is consumed in your home, it goes here: No need to separate food from household items. But, putting all consumables into one category will help you keep track of where the money is going. This is one of the biggest categories, and one of the easiest to overspend on. Utilities (Water, Sewer, Garbage, Electric, Natural Gas)Īnything that has to do with your cars or getting around from place to place. This first category is all about everything related to your housing. But when you are already overwhelmed, going simple is the best method.ĭivide up your spending into these basic budget categories and you will find that tracking your expenses, and budgeting overall, will be a lot easier.Īnd again, there are only 7 categories you need to worry about. It is so easy to over complicate budgeting. ![]()
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