When creating your first budget or simply updating one you already use, it's important to recognise that budget categories are important. And it's not just because the categories you choose can either illuminate or obscure our spending choices; your budget categories will also influence your future behaviour. As Phillip Brewer at WiseBread puts it:
Does the fitness center membership go under entertainment, or under medical? You can make a case for either.
Phillip offer an interesting suggestion for those wanting to get their budget categories right. turn to the categories used by the US Bureau of Labor Statistics (BLS) for inspiration. Phillip continues:
Looking at the BLS categories would be especially useful if you're creating your first budget, in that it's going to have lots of categories that you probably wouldn't think of.
You can read Phillip's article in full here.
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