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Top Money Tip: Categorize Your Money

Postby skysnap » 04 Jul 2022, 12:51

When you get the salary in your bank account. First thing you should do is categorize the money before you get to use it. This way you can take care of the bills and other spending's and also get to budget and plan.

You can try out the following approach in the Spreadsheet.

Image

As you can see, each category has specific task in your life. When you assign a money to that most of your work is taken care of and things get properly balanced as well. Your work becomes lot easier when you know where the money is going. Once that part is identified you can also stop a lot of financial leaks.


How to categorize money?

You can use the spreadsheet for making simple categories in one block. You can add the funds in the second block where the money is assigned for that category. This way you would gauge where the money is supposed to be spent. You can also use the apps which can do most of the categorization automatically for you. However they are relying more on digital payments. If you are using the digital money you would notice that this could affect you too.


Why it helps?

You eliminate the waste of the money. You also reduce mood spending. You can also take care of most of the expenses that happens due to the rush and the emotional spending. All the emergency funds that you feel like they are going to cause you some issues, you can easily address them too.
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Re: Money Tip: Categorize Your Money

Postby junglegal » 04 Jul 2022, 13:42

I categories my money way before my income arrives.I Work based on what I have to pay. I work 100% online. If I make more then what I budgeted then it's a bonus for me.
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Re: Money Tip: Categorize Your Money

Postby Fergal » 05 Jul 2022, 05:54

That's a very useful money tip skysnap, thanks for sharing it with us. Similar to other tips I can see how it would help us get more control and understanding of how we spend our money. It's very easy to go from week to week, or month to month feeling short of money, but not knowing where it is going. This tip could help a lot with that.

What are some example categories you would use for your spending?
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Re: Money Tip: Categorize Your Money

Postby Yugocean » 05 Jul 2022, 07:09

My Category will go as -
Home
Sub -
Rent/ House Tax -
Maintenance -

Food & Grocery -
House Need - (Floor, Rice, Pulses, Vegetables etc)
Fun Food - (Chocolate, Biscut, Icecream etc)
Others - (Occasionally Ordered Cooked Food, including Birthday Cake)

Travel Expenses -
Fuel Personal Vehicle -
Maintenance Personal Vehicle -
Public Transport -

Clothes & Wear Accessories
Men -
Women -

Other Accessories
Purchase / Maintenance / Charges - (TV, Fridge, Mobile etc)
(More sub categories added)
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Re: Money Tip: Categorize Your Money

Postby Fergal » 05 Jul 2022, 18:34

Thanks skysnap, for posting a Top money tip. Sending ForumCoin now :)
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Re: Money Tip: Categorize Your Money

Postby augusta » 16 Jul 2022, 01:16

This is a smart one it will really help one see how you are spending the money. it will be a lot better to always allocate more money to very important things.
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