From today on, let’s add a bit more organization to the mix – we’re structuring your expenses! To better understand where your money is going, start collecting all (!!!) receipts, invoices, and bills. The easiest way is with an envelope or an old shoebox, placed conveniently near our little book or those notes.
Here’s an example list of irregular, variable expenses that might be happening for you:
- Housing
- Heating oil, wood pellets, or other energy sources
- Chimney sweep
- Gardening costs
- Mobility
- Gasoline
- Repairs / Maintenance / Upkeep
- Single tickets
- Food
- Groceries / Snacks
- Cafeteria
- Dining out
- On-the-go meals, bakery visits, coffee
- Clothing
- Clothes, shoes
- Dry cleaning
- Health and Care
- Hairdresser, pedicure
- Personal care
- Doctor
- Medications
- Swimming pool, sauna
- Leisure
- Education
- Magazines, books
- Movie, theater
- Hobby expenses
- Gifts
- Other Expenses
- Pet food
- Household purchases
- School trips
- Celebrations
If other expenses fit better for you (e.g., if you always get your personal care products during your weekly grocery shopping), just jot them down together for simplicity.
Some of the mentioned irregular expenses will only be captured by reviewing your bank statements, not through daily tracking. Go through your statements of the last 12 months for infrequent variable expenses and note them on another separate sheet. These irregular, larger expenses might not be crystal clear at first glance and are often forgotten. Examples include annual Christmas gifts, birthday presents, or an annual summer party with neighbors. These items will be crucial, especially in later budget planning.