The aim is to answer one question at month end: where did the money go? Ten to twelve categories answer it well.
A starter list
| Category | What goes in it |
|---|---|
| Groceries | Atta, dal, rice, oil, spices, household supplies |
| Milk and Dairy | Milk, curd, paneer, ghee. Tracked separately because it is daily |
| Vegetables and Fruits | Sabzi and fruit, often bought several times a week |
| Transport and Fuel | Petrol, metro, bus, auto, cab |
| Bills and Utilities | Electricity, gas, water, internet, phone recharge, rent |
| Health and Medical | Doctor visits, medicines, tests |
| Education | School and tuition fees, books |
| Shopping | Clothes, gadgets, home items |
| Dining Out | Restaurants, takeaway, street food |
| Savings | SIP, recurring deposit, money set aside |
| Other | Everything that does not fit, gifts, repairs |
Why milk and vegetables get their own lines
They are small, frequent and easy to underestimate. Seen as one Groceries total they disappear. Seen on their own, you can notice that the daily sabzi and milk add up to a real part of the month.
Where to put rent and EMIs
Put fixed monthly costs under Bills and Utilities, or create separate categories for Rent and Loan EMI if they are big. Add them as recurring bills so they appear on time.
How many categories is right?
- Start with ten to twelve. You can add more later.
- If you often wonder which category to pick, you have too many.
- If one category regularly holds a third of your spending, split it.
Using these in Rozbahi
Rozbahi comes with categories for Indian households such as Groceries, Milk and Dairy, Vegetables and Fruits, Transport and Fuel, Bills and Utilities, Health and Medical, Education, Shopping, Dining Out, Savings and Other. Start tracking daily expenses or download the app.
Common questions
How many expense categories should I have?
Ten to twelve works for most households. Add more only when one category becomes too large to be useful.
Should I track milk separately from groceries?
It helps. Milk is a daily cost, so it is easy to underestimate. A separate line makes it visible.
Where do I put school fees?
Under Education. If fees are paid once or twice a year, you can still add them to the right month and see them in reports.
Where should EMIs go?
Under Bills and Utilities, or in their own category if the amount is large. Adding them as recurring bills keeps them from being missed.
Can I change the categories?
Rozbahi has a ready set for Indian households. Pick the closest one for each spend, and use Other for anything else.
Related reading
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