Categories and Groups
Opening the tools menu from the top of the
screen you will see an item called “CATEGORY LIST”. Opening this
brings up a list of how you will categorize all of your financial
transactions. Several categories come pre-populated, this can be
overwhelming. Make sure you are on the “ALL CATEGORIES” Tab and have
a scan through of what you think you will need and what you can get
rid of. After going through the list go ahead and DELETE any
categories that do not pertain to you. Don’t worry if you delete a
category you may want to use later. You can add categories whenever
you like. Another option is to simply click the HIDE TYPE box and
you won’t be given the option to categorize a transaction with that
type.
The categories, as populated, may not be the
most effective means for you to categorize your spending. Think
about how you like to keep track of things and start to plan your
own categories. For example, I like to know how much I am spending
on Credit & Loan Interest per month. I have created a category
called INTEREST. I did this by selecting NEW from the top right,
filled out the name, description, and chose the MANDATORY group. We
will talk about groups later in this section. I set it as an EXPENSE
TYPE and ticked of the checkbox SPENDING IS NOT DISCRETIONARY. My
category is finished as there is no tax items to associate with it,
so I simply click OK and my category is finished.
Setting up the INTEREST category was quite
easy. But I like to break things down a bit further. I am going to
create another category by clicking on NEW, but this time I’ll give
it a name of CREDIT CARD INTEREST. Fill out the description, but
this time I’ll choose SUBCATEGORY OF” TYPE, then choose INTEREST
from the drop down menu. I repeat this step for LOAN INTEREST and
LINE OF CREDIT INTEREST.
Going through I delete a number of categories
that don’t pertain to me and create ones that make more sense to my
life style. After I am finished I begin at the top and open each
category again to ensure it is in the correct GROUP. Assigning you
categories to a GROUP will assist later in setting up and Emergency
Fund.
GROUPS are simply a way of categorizing
categories. They help to access how much you are spending on
mandatory or discretionary items. Rent and groceries are excellent
examples of mandatory expenses. Dinner Out, movies are excellent
examples of discretionary expenses. When it comes time to stop
spending and start saving you can see how much you are actually able
to cut back.
This may seem like a lot of work to get set up
but it is worth every effort. This will be one of the main engines
so to speak in your financial picture. If you don’t know where you
are spending your money you will never have control. Make sure you
take the time to set these categories up in a way that will work for
you, a way that you understand. When we start running reports, you
will understand why taking the time here was so important.
BACK
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Related Articles
Categories & Groups
Scheduled Bills & Deposits
Creating a Budget
Setting Up Online Services
Reports
Quicken Home Inventory
Backing Up Your Data
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Additional Article Information
This Article was written by
Christopher Skjonsby
This article was posted
October 25th 2008.
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Disclaimer
Please note the articles contained herein are examples for one
method for managing your financial situation. If you are in serious
financial trouble theCitySage.com recommends speaking with a debt
counsellor before proceeding.
The purpose of the articles under this category are to help you
the reader become more aware of how and where you are spending your
finances focus on the mandatory expenses and get control of your
discretionary spending. Follow at your own risk.