List at least three categories from your budget that show where your money will go.

The following are the three categories from my budget where I spend lot of money:

i) Housing

ii) Transportation

iii) Living Expenses

Explanation:

Budget means preparing an estimation of expense list for specific period of time based on the income. Framing a budget can help in saving money. The budget sheet helps to decide on what to spend and how much to spend for a month.

Even though we make budget, there are some categories which consume huge amount. Some of them are housing, transportation, living expenses, debt payoff and savings.

The rent of the house depends on the area of living. It is important to choose the house with rent of 35% or less of the take home income of an individual.