Keep Your Spending Categories Manageable
When thinking about your spending, be sure to lump expenses together to save yourself from being overwhelmed by the number of categories or buckets you have.
We all have one-off expenses that happen such as buying a new computer or a major car repair. Those items should live with all your other, smaller miscellaneous expenses as they tend to even out over the course of a year.
What is the Price Tag of Your Current Lifestyle?
If, instead, you grow your categories too large, your willpower and attention span for your spending will fade. Yes, at first, it might seem more correct to place everything in their own bucket. Don’t do it!
Realize the goal we have in paying attention to our spending is simply to know where our money is going at a high level.