There are several expenses that fall under this category.Įlectricity, natural gas, internet, trash, cable or satellite, phone, water, and sewerage belong here. RELATED: Paycheck Budgeting: 7 Best Ways To Make The Most Out Of Your Wages
![how to categorize personal expenses in quickbooks how to categorize personal expenses in quickbooks](https://software-advice.imgix.net/wordpress/other_pages/Accounting/1-QB-Self-Employed.png)
Some sources that may apply to you are salary or wages, side hustles, tax refunds, predictable work bonuses, investment income, child support, alimony, etc. Only guaranteed sources of income should be listed in your budget. There are several means of generating income.Īt this point, you need to think of all the things you do that bring in money. You can either go through the list to identify categories that apply to you, then add them to your budget spreadsheet or make a list of all your monthly expenses and cross-check with this category list to see if there’s anything you are missing. However, there are two ways for you to get the most from this list. Here’s a list of recommended expense categories you can include in your personal budget. Experienced budgeters can actually make use of a combination of the two methods. Nonetheless, determining the best method will depend on individual preference. However, a detailed budget will help you allocate funds for specific needs and make it easier for you to make a budget calendar to track your spending.įor those who are just starting to make budgets, a detailed breakdown of categories is recommended so you would know exactly what you are spending on. Some people are of the opinion that creating master categories save time and simplify their budget. Or the second option is to break down each category into specific expenses and allocate money precisely to specific needs.įor instance, you can create categories for “Groceries,” “Eating out,” and “Kids’ lunches” instead of just creating a “Food” category. You can either create a master category to cover a group of expenses, such as creating a “Utilities” category instead of dividing it into smaller categories like electricity, water, cell phone, gas, sewerage, etc. You can categorize your budget in two ways. This is to allow you to have a clear picture of what you are spending on every month. To make a realistic and precise budget, you need to be more detailed when creating spending categories. The reason for this categorization is to enable you to create a guideline for your monthly spending.Ī budget is vital for a precise allocation of money for future expenses.Ĭategorizing your expenses and assigning money differently to each category ensures that you choose important expenses to spend your money on and meet your basic needs. Now, you have a list of your expenses and you want to break them down into various categories.
#How to categorize personal expenses in quickbooks how to
Learning how to categorize expenses is the next thing to do after tracking your spending and determining where your money goes every month.