Categorize expenses, such as:Īny high-interest debt you carry should be included in your budget. If you have children, you likely pay for education, even at public school and/or childcare. You should also include any local taxes or sales tax you typically pay on your tax returns. Whether you work for an employer or are self-employed, you pay state and federal income taxes. Taxes should include any taxes you didn’t include above (real estate taxes). Think of any and all insurance policies you pay for, even those you only pay once a year. Medical devices such as wheelchairs and canesĪny insurance you pay that doesn’t fall in one of the above categories included here.It includes the obvious like doctor and hospital bills but also includes expenses you incur for medication or medical equipment. Healthcare is essential to your wellbeing.
Internet and cellphones are necessary for most people to work from home and/or the kids to e-learn. This budget category includes internet and cell phone bills but keeps the cable bill for a nonessential expense. Utilities are any bill you pay to keep your home warm or cool, water running, and power on. Food you order in (takeout or drive-thru).It is also a category that can easily be cut back on.
This is one budget category, many people don’t properly budget, though, because they forget about things like groceries, dining out, or coffee shop stops, which can cause overspending.