Using Categories Effectively
Tips for choosing and using expense categories to maximize insights
Understand Available Categories
The app provides 11 expense categories:
- Food & Dining: Restaurants, takeout, groceries
- Transportation: Gas, parking, public transit, car maintenance
- Shopping: Clothing, electronics, household items
- Entertainment: Movies, concerts, hobbies, streaming services
- Bills & Utilities: Rent, electricity, water, internet, phone
- Health & Fitness: Gym, doctor visits, medications
- Travel: Flights, hotels, vacation expenses
- Education: Courses, books, tuition
- Personal Care: Haircuts, spa, cosmetics
- Housing: Mortgage, property tax, home repairs
- Other: Anything that doesn't fit above
Be Consistent
Use the same category for similar transactions:
- Always put Starbucks in Food & Dining
- Always put gym membership in Health & Fitness
- Don't switch categories month-to-month for same expense
- Consistency makes reports and trends meaningful
Split Multi-Category Purchases
For purchases that span categories (like Target trips):
- Create separate transactions for each category
- $50 Target trip = $30 Groceries + $20 Shopping
- More accurate than putting entire amount in one category
- Helps budget tracking and spending analysis
Food & Dining: When to Use
This is usually the largest category. Include:
- Grocery store purchases
- Restaurants and takeout
- Coffee shops and cafes
- Food delivery services
- Snacks and drinks from convenience stores
Consider separating groceries from dining out using notes if you want that detail
Bills vs Shopping vs Housing
These categories can overlap - here's how to decide:
Bills & Utilities: Recurring services (electricity, water, internet, phone)
Shopping: One-time purchases of goods (clothes, electronics, furniture)
Housing: Home-specific (mortgage, repairs, property tax, HOA fees)
Minimize Use of Other
The Other category should be your smallest:
- Only use when nothing else truly fits
- If Other becomes large, you're missing a common expense type
- Review Other transactions monthly to identify patterns
- Consider if the expense actually fits another category
Goal: Keep Other under 5% of total spending
Use Categories for Budgets
Categories power your budget system:
- Create budgets for your highest-spending categories first
- Check the pie chart to see which categories need budgets
- Budget alerts only work if transactions are correctly categorized
- Accurate categories = accurate budget tracking
Review Category Distribution
Use the Category Spending Breakdown pie chart monthly:
- Check if any category dominates (>40% of spending)
- Look for surprisingly large categories - might indicate miscategorization
- Compare month-to-month to spot category trends
- Ensure distribution aligns with your priorities and values