Bayad Utang: My budget categories

I thought I should share with you what my budget categories look like. If you have better ideas on how I should categorize them, do tell!

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Income

Total Net Income (including bonuses)

Husband's net salary
My net salary

Other Income

Borrowed from savings
Others (gifts, etc)

Total Income = Total Net Income + Other Income

Expenses

Discretionary

Food grocery
Non-food grocery
Kid's stuff/toys/classes
Allowance (husband)
Allowance (mine)
Withdrawals

Debts

Credit Card
Car Loan
Student Loan

Home

Mortgage/Rent
Property tax
Home and Contents Insurance
Life Insurance
House supplies/appliances
Maintenance/Improvements
House help

Transportation

Gas
Car Insurance
Public Transport Fares
Parking Fees/Permit
Registration
Maintenance

Savings

Kid's College Fund
Savings 1
Savings 2
Bonds

Bills

Electricity
Water
Cable
Internet
Daycare
Tax due
Bank charges/fees

Leisure

Dine-out/Take-out
Travel
Entertainment (eg. Movies)

Medical/Health

Medicines/Tests
Doctor/Dentists visits
Personal Care (eg. Spa)
Clothing

Miscellaneous

Gifts
Electronics
Charity
Cellphone load
Others

Total Expenses = Discretionary + Debts + Home + Transportation + Savings + Bills + Leisure + Medical/Health + Miscellaneous

Wiggle Room = Total Income - Total Expenses

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If you are right on track, your wiggle room should not be negative. Kung negative man, it's simply screaming at you to cut down on your expenses.

Other budget templates or software allows for the inclusion of interests earned from savings as part of the Income category. I don't do that. I simply roll it over. I have a separate tab in my spreadsheet that tracks our savings. Unang-una (at nag-iisang dahilan), di naman ganoon kalaki pa ang interests ng kapiranggot naming ipon.

As you may have noticed, I categorized Clothing in Medical/Health and not in Discretionary. You'll learn as move towards frugal living that clothing is necessary to your well-being. It means shopping nonstop for clothes is not necessary for you to live, unless artista ka. :)

It took more than a year before I finalized these categories. I started with 2 simple categories: fixed and variable expenses. It went on like that for some time until I itched to get more details out of our spending. You decide what works for you. My expenses are different from yours in certain aspects.

Remember that living on a budget does not mean limited ways to enjoy life. The point is to live within your means and to find value and to be happy with what you have.