Category Setup: Organizing Expenses in SavePoint

SavePoint uses a three-level category system to organize your transactions: main category, Subcategory 1 (typically Needs vs Discretionary), and Subcategory 2 (for deeper analysis). Here's how to set up categories that provide actionable insights.

Main Categories: What You Spent On

Main categories answer the basic question: what type of expense was this? Create categories that match how you think about spending:

Typical expense categories: Housing, Groceries, Dining Out, Transportation, Utilities, Healthcare, Insurance, Entertainment, Personal Care, Clothing, Subscriptions, Gifts, Home Maintenance.

Income categories: Salary, Freelance, Investment Income, Refunds, Other Income.

Start with 15-20 categories. You can always add more later if a category becomes too broad.

Subcategory 1: Needs vs Discretionary

This classification helps you see how much of your spending is essential versus optional. For each expense, categorize it as:

Needs: Essential expenses required for basic life and work. Rent, groceries, utilities, transportation to work, health insurance.

Discretionary: Optional expenses that improve life but aren't required. Dining out, entertainment, hobbies, upgraded services.

This powers useful analysis. You can see what percentage of your budget is truly required versus where you have flexibility.

Subcategory 2: Life Area Analysis

The second subcategory lets you group expenses by broader life areas. This reveals patterns across categories. Examples:

Food: Includes both Groceries and Dining Out categories

Transportation: Includes Gas, Car Payment, Car Insurance, Maintenance

Living: Housing, Utilities, Home Maintenance

Health: Healthcare, Insurance, Gym, Personal Care

With this setup, you can see total Food spending even though it spans multiple main categories.

Best Practices for Category Setup

Be consistent: Always categorize similar transactions the same way. If Starbucks is "Dining Out," all coffee shops should be too.

Match your budget: Your expense categories should align with your budget categories. If you budget for "Groceries," have a "Groceries" expense category.

Avoid over-complexity: Too many categories makes tracking tedious. If a category represents less than 1-2% of spending, consider merging it with something broader.

Review periodically: After a few months, you'll see which categories are useful and which need adjustment. It's okay to reorganize.