Fewer categories create better habits
Categories should help decisions. If two categories always lead to the same decision, they may not need to be separate.
A strong starter set
Begin broad and split a category only when the extra detail changes your behavior.
- Home and utilities
- Food
- Transport
- Health
- Debt
- Savings
- Personal and family
- Fun
- Other or buffer
Categories to personalize
Add categories for large areas specific to your life, such as childcare, education, business costs or family support. Avoid adding a category for every store.
Review categories quarterly
If a category is rarely used, merge it. If one category hides two different problems, split it. Your category list should evolve with your decisions.