Categorize Your Expenses

The first step to financial equilibrium is organization. Once you categorize your expenses, you can set aside a specified amount of money.

~Housing: mortgage/rent, repairs, property taxes, cleaning supplies, home owner's/renter's insurance, utilities, furnishings, decor

~Food: groceries, eating out, takeout delivery, snacks and beverages at work

~Transportation: car payments, insurance, gas, oil, parking, repairs/maintenance, public transportation fees

~Medical: insurance, out of pocket expenses such as deductibles and non-insurance covered medical services, prescription medications, eye care, dental

~Clothing: new purchases, dry cleaning, repair

~Personal: cosmetics, haircuts, skincare and bath products, personal hygiene products

~Insurance: life insurance and any other insurance not covered under home, transportation, or medical expenses

~Education: tuition, miscellaneous educational expenses, school pictures, yearbooks, school supplies, books

~Credit Accounts: major credit cards, department store cards, any other outstanding debts

~Gifts: holidays, birthdays, graduations, weddings, showers

~Recreation: vacations, movies, books, magazines, newspapers, cable TV, restaurants, sporting events, sports equipment

~Savings: long term and short term goals, as well as retirement

~Donations: charities

Source: Frugal Living for Dummies