Money

Budget Categories List: What to Include in Your Budget

By Money editorial team · Updated

A good budget starts with a good list of categories. If a cost is missing from your list, it will still happen, and it will show up as a surprise. Below is a practical list of ten main groups, with specific line items inside each. Use it as a checklist: delete what does not apply to you and add what is missing.

How to use this list

  1. Read each group and mark the items you actually pay.
  2. Write an amount and how often you pay it (weekly, monthly, quarterly or yearly).
  3. Convert everything to the same period, such as per paycheck. The method is in how to budget a paycheck.
  4. Add anything personal that is missing.
Bucket budget categories such as housing, food, transport and savings feeding a free to spend jar

1. Housing

2. Utilities

For bills that change by season, use a twelve-month average rather than your best month.

3. Food

Small leaks add up here, which is why many people give food two or three separate lines instead of one.

4. Transportation

Registration, tires and inspections come up once a year or less, so they are good candidates for a yearly bucket.

5. Insurance and health

6. Debt

If you are paying down more than one debt, see the debt snowball vs avalanche comparison.

7. Savings and goals

8. Personal and family

9. Subscriptions and memberships

A quick look at your bank statements often turns up a subscription you forgot.

10. Annual and seasonal costs

This is the category most budgets leave out, and the one that causes the most surprises.

A yearly cost is easiest to handle by dividing it across your paychecks. See sinking funds categories and examples for a more detailed list.

Choosing your own categories

You do not have to use all ten groups. Some tips:

A library you can copy from

Writing your own list from scratch takes time. Bucket Budget Planner includes a Bucket Library with 154 common US buckets in ten categories (annual and seasonal, housing, utilities, food, transportation, insurance, debt, savings, subscriptions and others), each with a typical billing frequency and a short note. You copy the rows you need into the Buckets tab and type your own amounts. The sheet then converts each bucket to a per-week, per-paycheck, per-month and per-year amount, and the Dashboard charts where your money goes.

Bucket library sheet listing budget categories with category, typical frequency and notes

Couples can use the included Household & Couples Budget, which splits shared buckets either evenly or in proportion to each partner's income. For more on that, see the budget template for couples. To see how categories become buckets, read what is bucket budgeting.

This guide is general information, not financial advice.

Frequently asked questions

How many budget categories should I have?

There is no correct number. Many people begin with six to ten broad groups and add specific line items inside them. Too few groups hides where money goes, and too many becomes tiring to maintain.

What are the main categories in a personal budget?

Housing, utilities, food, transportation, insurance, debt, savings, personal and family costs, subscriptions, and annual or seasonal costs. Entertainment and giving are often added as separate groups.

Where do irregular expenses go?

Put them in their own category, such as annual and seasonal costs, and set aside a small amount each paycheck. This prevents a yearly bill from feeling like a surprise.

Should I include a miscellaneous category?

A small buffer for the unexpected is useful, but if it grows large it usually means that real expenses are hiding in it. Review it each month and move recurring items into their own line.