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Cactusjuice
Prickly and Punctuated


Registered: 01/24/22
Posts: 23
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How far do you break down a budget
#27631105 - 01/24/22 03:00 PM (2 years, 3 days ago) |
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When it comes to categories how far do you break it down to specifically
I.e. Groceries >household items
>food >>coffee >> vegtables
How do you go about truly separating things that should be separated. I.e soap from non consumables i.e dishware
I've made several budgets some like so simple there's no difference in sticking to it and just free ranging
To
Some so broken down it takes hours to adjust and record the monies.
I don't find apps to be helpful cause they get it all wrong and I have to adjust every transaction anyways
What are some categories/examples you use
-------------------- I am new here so I am looking to have a simple signature card         
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 6 minutes, 22 seconds
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Re: How far do you break down a budget [Re: Cactusjuice] 1
#27631123 - 01/24/22 03:15 PM (2 years, 3 days ago) |
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The broadest categories should be ESSENTIAL vs NON-ESSENTIAL spending. Beyond that, you can break down the minutiae as much as you please, but getting your budget to fit into those two broad categories will provide you the most clarity with regard to where and how you can optimize.
Examples of ESSENTIAL spending:- Housing (e.g. mortgage, rent, maintenance supplies)
- Utilities (e.g. internet, cellular, water, power, gas)
- Transportation (e.g. car, public transport pass, ride-share)
- Insurance (e.g. home, health, car)
- Food (e.g. basic grocery)
- Education that progresses toward returned income (e.g. technical training, 4 year and/or graduate degree)
Examples of NON-ESSENTIAL spending:- Food (e.g. coffee shops, bars, restaurants, delivery)
- Entertainment (e.g. at-home subscription media, ticketed shows of any sort)
- Hobby Education (e.g. music, other creative/art lessons)
- Physical (e.g. yoga/gym memberships)
Generally speaking, food is where people run into the biggest problem with their discretionary spending. It takes some time and work to figure out how to cook on the cheap for yourself, especially if you've never done it before, but doing so will save you a tremendous amount of money over paying for someone else to prepare food for you.
Transportation is often sorely mismanaged, but that is entirely dependent on your own personal requirements. If you have a job that requires you to commute, a car may make sense. However, if your job is close and weather year-round is generally temperate, perhaps you could walk or bike instead? Ride-share can be used as an effective alternative to the numerous expenses relating to the acquisition/maintenance/insurance of your own vehicle, but that will depend on how often you use it and how available it is in your market for the purposes you may require.
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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Cactusjuice
Prickly and Punctuated


Registered: 01/24/22
Posts: 23
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Re: How far do you break down a budget [Re: geokills]
#27631217 - 01/24/22 04:33 PM (2 years, 3 days ago) |
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Really appreciative of the in depth response. You seem to be on the finance front here at the shroomery
Would you believe me if I have my budget down to 290$ plus 500 mortgage/taxes I make from 1-4k a month depending on the circumstances
Caveats No car No insurances I catch most of my food/trade vegtables If I need "consumables" I usually do pretty good on flipping enough to buy my own.
Looking at adding a car The finance process I'm going through right now doesn't believe my budget.
For undisclosed reasons I lost my 30k savings recently let's just say to unforseen circumstances.
Borrowed against some of it but now I'm down to 8k savings 10k Student loan 8K secured loan 1k checking account
I tried both ways expanded and general and they are telling me that someone can't live on so little... but I submitted statements receipts and everything. They are Claiming I have unreported cash flow.... so it's so incredible They think I'm a liar
I do have a very supportive family, like Xmas gift cards buy my shoes and clothes every year.
I would say I'm 99.9 accurate (see above consumables) and try to deposit and spend everything in credit cards or the bank card to keep it recorded budgeted.
My biggest area is 60 for misc
Anyways thought I'd throw myself out there for judgment correction.
Anyone else with unique categories? Suggestions for their budget categories?
-------------------- I am new here so I am looking to have a simple signature card         
Edited by Cactusjuice (01/24/22 04:36 PM)
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,372
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Re: How far do you break down a budget [Re: Cactusjuice]
#27634882 - 01/27/22 08:19 AM (2 years, 1 day ago) |
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I do something kinda similar to what geo posted above.
I have all my recurring/stable/constant charges tracked in one category. Things like my mortgage, car payment, cell plan etc. etc.
Anything that regularly fluctuates like a grocery bill, eating out, entertainment, gas, etc. etc. goes on the credit card. That way, its easily tracked via the card statements. For me, its easy having two categories of expenses, and nothing goes unnoticed.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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