Getting started
Creating spending categories
How to divide the money left after bills into spending categories that fit your life.
Last updated: 2026-07-02
After your income and bills are in, whatever is left is yours to plan. Spending categories are how you give that money a job before the month begins.
Start with a few categories
You do not need a long, detailed list. In fact, a handful of clear categories is far easier to stick with. Common ones include:
- Groceries
- Travel or fuel
- Eating out
- Personal spending
- Household
- Savings
You are in control of the categories, so use names that match how you actually live.
Give each category an amount
Set a planned amount for each category from the money left after bills. As you assign amounts, SpendSquirrel shows your remaining balance, so you can see when you have given every pound a purpose. The goal is for your categories to add up to the money you have, not more.
Do not forget to include savings
Savings is a category too, even if it is small. Treating it as a planned amount rather than leftovers makes it far more likely to happen. Even a modest amount each month builds the habit.
Adjusting as you learn
Your first set of categories is a starting point, not a contract. After a month or two you will see where your amounts were too tight or too generous, and you can adjust. That is exactly how a plan is meant to work.