5 Budget Categories To Track Weekly, According to a Young Money Expert
Learning how to budget can help you gain control of your money and find a sense of financial security. Whether you’re aiming to retire early or just want to live more comfortably today, a budget is the first step.
If you're not budgeting and tracking your expenses, you won't know how much money you're spending or see where you can cut back. MoneyLion asked Clay Cary, a senior trends analyst at CouponFollow.com, which budget categories are most important to track in your 20s and 30s.
Read Next: Inspect Your Budget To See Where You're Bleeding Money Every Month
For You: 8 Low-Effort Ways to Make Passive Income (You Can Start This Week)
Cary started by explaining the two main categories that expenses fall into: fixed and variable.
“Fixed expenses are your regular bills that are typically predictable every month, like your rent, car payment, phone bill and internet,” Cary said. “Discretionary expenses … pertain to your choices and habits."
If you're trying to cut costs, you can look at the fixed costs once every few months and see whether there’s room for negotiating with your providers or try finding a better deal. However, the discretionary categories provide the most opportunity to save money.
Cary warned that discretionary spending often feels permanent because it sneaks in and becomes part of your routine.
“We’ve grown up in an age of convenience whether it’s using Netflix, DoorDash, an Uber ride or late-night scrolling/shopping sessions, so you need to factor these expenses in,” Cary said. “Acting like these things are add-ons and not part of your budget just isn’t realistic.”
That’s why it’s important to track these five expenses diligently.
1. Transportation
Transportation is a combination of fixed expenses, like your car loan and insurance, and discretionary spending, like gas. It’s a good idea to track these costs to see how much you spend on gas, maintenance and also emergency repairs so you can plan ahead and set aside savings for these once-in-a-while expenses.
If you live in a city where you don’t need a car, transportation costs might be more discretionary. You can choose whether to call an Uber, take public transit or even walk.
“Grabbing a Lyft here and there… these types of things add up even if, at the moment, it doesn’t feel like you’re spending that much," said Cary. "Looking at all your receipts at the end of the week, you’ll be surprised."
2. Groceries/Dining Out
Forbes recently reported on a new study conducted by BLogic Systems that revealed that some foods, including hamburgers and lasagna, cost 400% to 500% more at restaurants than when they’re cooked at home.
You can easily save yourself money by making your favorite dishes at home instead of going out. You can also save by purchasing store brands instead of name brands and by meal-planning for the week so you’re using the same ingredients for multiple dinners.
But here's the counterintuitive advice: don't obsess over separating groceries and dining out, at least not at first.
“Broad categories can make it easier to stick to on a consistent basis, and that’s important,” Cary said. “Once you get comfortable budgeting on a regular basis, then you can zoom in on specific areas and tackle those at a more granular level.”
Once you're ready to go deeper, break food spending into: dine-in, takeout, delivery, convenience store and groceries. That's when patterns become obvious and easy to correct.
3. Subscriptions
Subscriptions add up before you realize it, especially because they’re automated. Thirteen dollars for Spotify or $9 for Netflix may not feel like a lot, but before you know it, you’ve spent more than $200 just on subscriptions.
“Your money can move fast when so much of it is digital, so checking in weekly can help keep you grounded and aware of what’s actually happening in your bank account,” Cary said.
4. Debt Payoff
Outstanding debt can be fixed, like student loan payments, or variable, like credit card payments. Tracking your progress on your credit cards weekly can keep you inspired to pay down debt faster.
5. Saving and Investing
Cary considers debt repayment, along with savings and investing, as “future spending.” You should track how much you’re setting aside for the future weekly.
“A lot of folks in their twenties think wealth-building starts later down the road, when they’re ideally making more money,” he said. “But even small habits early on matter a lot more than people realize, and it gets you in the habit of thinking about these things and understanding their long-term value.”
To help Americans navigate the added cost of summer, MoneyLion is giving away $1,000 every day through July 4. Enter the Summer Break Giveaway here (No pur. nec. Ends 7/4/26. See Official Rules at mlion.info/summerbreakofficialrules)
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: