Category Recommendations

Not sure which categories to create or how much to budget? This guide provides recommended category structures for couples at different income levels, plus tips for personalizing your budget.

Quick Start Templates

Choose a template based on your household income and customize from there.

Minimalist Budget (10 Categories)

Best for: Couples who want simplicity, new budgeters

Income:
1. Combined Salaries

Expenses:
2. Housing (rent + utilities)
3. Groceries
4. Transportation (gas + car costs)
5. Insurance (all types combined)
6. Debt Payments
7. Dining Out & Entertainment
8. Personal Spending (each partner gets half)
9. Subscriptions
10. Savings

Pros: Simple, easy to maintain, less overwhelming
Cons: Less detailed tracking, harder to identify specific problem areas

Balanced Budget (15 Categories)

Best for: Most couples, good detail without overwhelming

Income:
1. Your Salary
2. Partner's Salary
3. Other Income (if applicable)

Expenses:
4. Rent/Mortgage
5. Utilities
6. Groceries
7. Dining Out
8. Transportation
9. Insurance
10. Debt Payments
11. Entertainment
12. Personal Spending - You
13. Personal Spending - Partner
14. Savings
15. Miscellaneous

Pros: Good balance of detail and simplicity
Cons: None - this is the sweet spot for most

Detailed Budget (20-25 Categories)

Best for: Couples who want maximum visibility, tracking specific goals

Income:
1. Your Salary
2. Partner's Salary
3. Your Side Hustle
4. Partner's Side Hustle
5. Investment Income

Expenses:
6. Rent/Mortgage
7. Electric & Gas
8. Water/Trash
9. Internet
10. Phone
11. Groceries
12. Dining Out
13. Coffee Shops
14. Gas/Fuel
15. Car Payment
16. Car Insurance
17. Car Maintenance
18. Health Insurance
19. Life Insurance
20. Student Loans
21. Credit Card Payments
22. Entertainment
23. Your Personal Spending
24. Partner's Personal Spending
25. Your Hobbies
26. Partner's Hobbies
27. Gym Membership
28. Pet Care
29. Clothing
30. Emergency Fund
31. Vacation Fund
32. House Down Payment Fund
33. Miscellaneous

Pros: Maximum visibility, identify exactly where money goes
Cons: More time to maintain, can be overwhelming

Income Level Examples

Entry Level: $50,000 household income

$4,167/month after taxes

INCOME:
Your Salary: $2,400
Partner's Salary: $1,767
Total: $4,167

HOUSING (40%): $1,667
- Rent: $1,400
- Utilities: $150
- Internet: $60
- Phone: $57

TRANSPORTATION (15%): $625
- Gas: $150
- Car Insurance: $150
- Car Payment: $275
- Maintenance: $50

FOOD (15%): $625
- Groceries: $450
- Dining Out: $175

INSURANCE & DEBT (10%): $417
- Health Insurance: $200
- Student Loans: $217

PERSONAL & FUN (8%): $333
- Entertainment: $100
- Your Personal: $75
- Partner Personal: $75
- Subscriptions: $83

SAVINGS (12%): $500
- Emergency Fund: $500

Total: $4,167 (100%)

Notes:

• Higher housing percentage common at this level
• Modest entertainment and savings
• Building emergency fund is priority
• Limited discretionary spending

Mid-Level: $100,000 household income

$7,500/month after taxes

INCOME:
Your Salary: $4,500
Partner's Salary: $3,000
Total: $7,500

HOUSING (28%): $2,100
- Rent/Mortgage: $1,800
- Utilities: $150
- Internet: $80
- Phone: $70

TRANSPORTATION (13%): $975
- Gas: $200
- Car Payment 1: $350
- Car Payment 2: $300
- Car Insurance: $175
- Maintenance: $150

FOOD (12%): $900
- Groceries: $600
- Dining Out: $250
- Coffee: $50

INSURANCE & DEBT (12%): $900
- Health Insurance: $300
- Life Insurance: $75
- Student Loans: $400
- Credit Card Payment: $125

PERSONAL & FUN (15%): $1,125
- Entertainment: $300
- Your Personal: $250
- Partner Personal: $250
- Gym: $90
- Subscriptions: $120
- Hobbies: $115

SAVINGS (20%): $1,500
- Emergency Fund: $500
- Retirement (extra): $500
- Vacation Fund: $300
- House Down Payment: $200

Total: $7,500 (100%)

Notes:

• Lower housing percentage (more income)
• Increased savings rate (20%)
• More discretionary spending
• Multiple savings goals

Upper Mid-Level: $150,000 household income

$10,500/month after taxes

INCOME:
Your Salary: $6,000
Partner's Salary: $4,000
Freelance Income: $500
Total: $10,500

HOUSING (23%): $2,415
- Mortgage: $2,000
- Property Tax: $200
- Utilities: $150
- Internet: $80
- Phone: $85

TRANSPORTATION (12%): $1,260
- Gas: $250
- Car Payment: $550
- Car Insurance: $225
- Maintenance: $150
- Car Wash/Detailing: $50
- Parking: $35

FOOD (10%): $1,050
- Groceries: $700
- Dining Out: $300
- Coffee: $50

INSURANCE & DEBT (10%): $1,050
- Health Insurance: $400
- Life Insurance: $150
- Student Loans: $500

PERSONAL & FUN (20%): $2,100
- Entertainment: $500
- Your Personal: $500
- Partner Personal: $500
- Gym: $120
- Subscriptions: $150
- Hobbies: $200
- Pet Care: $130

SAVINGS (25%): $2,625
- Emergency Fund: $500
- 401k Extra: $1,000
- IRA: $500
- Vacation Fund: $400
- House Projects: $225

Total: $10,500 (100%)

Notes:

• Aggressive 25% savings rate
• More personal autonomy ($500 each)
• More entertainment budget
• Multiple long-term goals

Categories by Life Stage

Young Couple (No Kids)

Focus: Building foundation, flexibility, experiences

Essential:
- Rent
- Utilities
- Groceries
- Transportation
- Insurance
- Debt Payments

Flexibility:
- Dining Out (higher)
- Entertainment (higher)
- Travel Fund (prioritize)
- Personal Spending

Savings:
- Emergency Fund (3-6 months)
- House Down Payment
- Retirement

Couple with Kids

Focus: Stability, childcare, family activities

Essential (adds):
- Daycare/Childcare: $1,000-2,000
- Diapers/Formula: $150-300
- Kids Activities: $100-200
- Kids Clothing: $100
- School Expenses: varies

Adjust:
- Groceries: +30-50%
- Healthcare: +100-200
- Entertainment: shift to family activities
- Personal Spending: often reduced

Savings:
- Emergency Fund (6-12 months with kids)
- College Savings
- Life Insurance (critical)

Empty Nesters

Focus: Retirement prep, maintenance, grandkids

Essential:
- Mortgage (possibly paid off)
- Healthcare (may increase)
- Home Maintenance (higher)
- Property Taxes

Flexibility:
- Travel (often higher)
- Gifts (grandkids)
- Hobbies
- Personal Spending

Savings:
- Retirement (max contributions)
- Healthcare Savings (HSA)
- Legacy Planning

Category Amount Guidelines

The 50/30/20 Rule

Popular framework:

• 50% Needs
• 30% Wants
• 20% Savings

Example with $6,000 income:

Needs ($3,000):
- Housing
- Utilities
- Groceries
- Transportation
- Insurance
- Minimum debt payments

Wants ($1,800):
- Dining Out
- Entertainment
- Hobbies
- Subscriptions
- Personal Spending
- Upgraded phone plans

Savings ($1,200):
- Emergency Fund
- Retirement
- Other goals

Variations:

• High cost area: 60/20/20
• Aggressive saver: 50/20/30
• Debt payoff: 50/15/35 (35% to debt + savings)

Housing: 25-35% of Income

$5,000 income:

• Ideal: $1,250-1,750/month
• Includes: Rent/mortgage + utilities + insurance

If higher:

• Look for ways to reduce other categories
• Consider roommate or smaller place
• Or increase income

Transportation: 10-20% of Income

$5,000 income:

• Ideal: $500-1,000/month
• Includes: Payment + insurance + gas + maintenance

If higher:

• Consider cheaper car
• Refinance loan
• Use public transit
• Carpool

Food: 10-15% of Income

$5,000 income:

• Ideal: $500-750/month
• Split: 70% groceries, 30% dining out

If higher:

• Meal plan
• Reduce dining out
• Shop sales
• Buy in bulk

Savings: Aim for 15-20%

$5,000 income:

• Goal: $750-1,000/month

Priority order:

1. $1,000 starter emergency fund
2. Employer 401k match (free money!)
3. High-interest debt payoff
4. 3-6 month emergency fund
5. 15% to retirement
6. Other goals

Personalizing Your Budget

Start with Template

1. Choose a template from above
2. Adjust amounts to your actual costs
3. Add or remove categories as needed

Consider Your Values

Your budget should reflect what matters to you:

Value Travel?

• Vacation Fund: $400/month
• Reduce: Dining Out, Subscriptions

Value Fitness?

• Gym: $90
• Personal Trainer: $200
• Reduce: Other entertainment

Value Food Experiences?

• Dining Out: $500
• Groceries: $700 (cook less)
• Reduce: Other entertainment

Value Financial Security?

• Savings: 25-30%
• Reduce: All discretionary

Your money, your priorities!

Adjust for Your Location

High Cost of Living Area:

• Housing: 35-45%
• Other categories: compress

Low Cost of Living Area:

• Housing: 20-28%
• More room for savings and fun

Urban (No Car):

• Transportation: 5-8% (transit)
• Housing: May be higher

Rural (Need Car):

• Transportation: 15-20%
• Housing: May be lower

Account for Irregular Expenses

Don’t forget annual costs:

Car Registration: $120/year = $10/month
Holiday Gifts: $600/year = $50/month
Amazon Prime: $139/year = $12/month
Car Insurance (if paid bi-annually): $750/6mo = $125/month
Vacations: $2,400/year = $200/month

Add these to your monthly budget so money is available when needed.

Common Category Mistakes

1. Too Many Subscriptions

Review these annually:

• Netflix, Hulu, Disney+, HBO Max, etc.
• Spotify, Apple Music
• Cloud storage
• Apps and software
• Gym memberships

Typical household: $150-300/month in subscriptions

Audit annually: Cancel what you don’t use.

2. Forgetting Sinking Funds

Irregular but expected expenses:

• Car maintenance
• Home repairs
• Medical expenses
• Gifts

Create categories and fund monthly:

• Car Maintenance: $75/month
• Home Repairs: $100/month
• Gifts: $50/month
• Medical: $50/month

When expense hits, money is there!

3. No Personal Spending Money

Problem: Every purchase requires joint discussion

Solution: Give each partner no-questions-asked money

• $100-500/month each (based on budget)
• Use for personal wants
• No justification needed

4. Groceries vs. Dining Out

Don’t combine these!

Separate:

• Groceries: $600 (necessity)
• Dining Out: $200 (want)

Why: Different priorities. In tight months, you cut dining out, not groceries.

5. Not Budgeting for Fun

All work and no play = budget failure

Include:

• Entertainment: $200
• Date Nights: $100
• Hobbies: $100
• Personal Spending: $200 each

Happy life = sustainable budget!

Troubleshooting

“These recommendations don’t fit our situation”

That’s okay! These are starting points. Customize to your:

• Income level
• Location
• Debt load
• Family size
• Priorities

“We don’t make enough for 20% savings”

Start smaller:

• 5% savings is better than 0%
• Focus on emergency fund first
• Increase as income grows
• Pay off debt, then redirect to savings

“Our housing is 50% of income”

Short-term solution:

• Accept it temporarily
• Reduce other categories
• Focus on increasing income

Long-term solution:

• Look for cheaper housing
• Get roommate
• Move to lower cost area
• Increase income significantly

“We have very irregular income”

Solution:

• Budget based on minimum expected income
• When you earn more, allocate extra to savings
• Build larger emergency fund (6-12 months)

Next Steps

Now that you have category recommendations:

1. Monthly Budget Reset - How budgets work month-to-month
2. Managing Your Budget - Advanced tools
3. Budget Progress Tracking - Monitor spending
4. Creating Your First Budget - Put it all together

Need help? Contact our support team - we’re here to assist!