#BASIC HOUSEHOLD BUDGET REGISTRATION#

Without an emergency fund, you may find yourself in dire straits if you get blindsided by an unexpected medical expense, car accident, or sudden job loss. Although saving money doesn’t have much impact on your day-to-day life, it has everything to do with your financial health down the road.Īt a bare minimum, every family should have an emergency fund earmarked for unexpected expenses as well as a retirement account such as a 401(k) or IRA. This often-overlooked (or underfunded) home budget category is arguably the most important. Saving, Investing, & Debt Payments (10-20 percent) If you decide to split up your insurance into each separate home budget category, remember to include your health insurance premiums here too.

specialty care (dermatologists, psychologists, etc.).

This budget category includes anything you might spend on healthcare, such as: If you plan for routine medical care, you’ll live a much healthier life over the long run. Maintaining your health and well-being is essential, so it’s critical to include enough in your budget to cover these costs. In that case, it should include all your insurance payments, such as: Other budgeters include insurance separately as one of their basic budget categories. Health insurance, for example, would fall under “Healthcare.” Auto insurance would fall under “Transportation.” This is a completely valid option. Many budgeters like to categorize insurance with the things they’re insuring. This is one home budget category that depends very much on your own preferences. For most families, it will also include your cell phone, cable, and internet expenses. That includes your gas, electricity, water, and sewage bills. Your utilities category should cover all the expenses that keep these services up and running. Water, electricity, and HVAC (heating, ventilation, and air conditioning) are vital to practically every well-functioning household. The basic idea behind your budget categories is to split them up so you can see what you really need to spend separately from what you’re choosing to spend. However, if you’re someone who tends to spend a significant amount of money on things like gourmet food and wine, you might want to put your non-grocery food expenses into one of the non-essential categories. Many budgeters include dining out in this category (e.g., restaurant meals, work lunches, food delivery, etc.) Groceries, of course, are an essential expense for every family.

#BASIC HOUSEHOLD BUDGET REGISTRATION#

Typically, this budget category includes car payments, registration and DMV fees, gas, maintenance, parking, tolls, and public transit. Regardless of your location or lifestyle, everyone needs to get from point A to point B. For most budgeters, this category is by far the biggest. That includes rent or mortgage payments, property taxes, HOA dues, and home maintenance costs. Housing (25-35 percent)Īnything you pay toward keeping a roof over your head is considered a housing expense. Your disposable income is what you have available to spend on your home budget categories: housing, transportation, food, utilities, insurance premiums, and other essential costs. Assembling Your Home Budget Categories The Essential Budget CategoriesĪll monthly budgets start with your disposable income-the money you take home from your paycheck after taxes, retirement savings, and other deductions. It also offers suggestions for how much of your income you should devote to each category. This guide reviews a list of budget categories found in a basic household budget. Once you’ve identified your basic budget categories, you can start allocating your spending based on your unique financial situation. The first step involves breaking down your regular expenses into budget categories to get a clear picture of your spending patterns (including areas where you tend to overspend). A well-thought-out budget can help you take control of your finances and use your money with purpose, so you have enough to pay your bills, grow your savings, and still enjoy life today. At its most basic, a budget is really just a plan for your money.

Basic household budget