2.2 Budget Categories
Lesson Objective: Learn how to set up the group and category labels for your budget
Budget Labels Set-Up
In lesson 1.4 Budgeting Preparation, you listed out all of your income and expenses. You will use that information to set up labels for use in your budget.
Groups & Categories
Categories are the names of the income and expenses that you listed out in lesson 1.4. For example, "rent", "auto loan", "groceries", and "toiletries" are all categories.
Groups are the titles that describe a collection of similar income or expenses. For example, "electricity", "gas", "water & sewage" could all belong to a group called "Utilities." Groups help you keep things organized so use titles that make sense to you.
Step 1: Enter Group & Category Names
Here is where you enter your budget groups and categories. You can name them however you choose.
Step 2: Enter Special Category Names
You also have special budget groups for taxes, debt, and savings. The category names can be changed but the group name can not.
Step 3: Add Account Names
Lastly you just need to add account names. This is for tracking money between your different accounts. Be sure to add one specifically for cash transactions as well.