Set Up Your Categories

Step 1: Set Up Your Categories (The Foundation of Your Budget)

Now that you’ve started planning your budget, the next step is simple—but incredibly important:

Create or select your categories.

Categories are what organize your money. Every dollar you earn or spend will fall into one of them, so getting this step right sets the foundation for everything that comes next.

Why Categories Matter

Your budget is only as clear as the structure behind it.

Without categories, your transactions are just a list of numbers. But with categories, you can start to answer questions like:

  • Where is my money actually going?
  • How much am I spending on essentials vs extras?
  • Which areas are getting out of control?

Categories turn raw data into insight.

Choose From Default Categories (Fastest Option)

To make things easy, Mintly gives you a list of default categories you can select from during setup.

These are based on common real-life expenses and income sources, such as:

  • Income: Salary, Bonus, Side Hustle
  • Housing: Rent, Mortgage, Utilities
  • Daily spending: Groceries, Dining, Gas
  • Lifestyle: Subscriptions, Entertainment, Shopping
  • Financial obligations: Credit Card Payments, Loans, Taxes

You don’t need to build everything from scratch. Just select the ones that apply to your life and move on.

Most users can complete this step in under a minute.


Or Create Your Own Categories

If your situation is a little different, you can always create custom categories.

For example:

  • “Freelance Income” instead of Side Hustle
  • “Kids Activities” instead of Childcare
  • “Business Expenses” if you track personal and side work together

Mintly is flexible—you’re not locked into a rigid system.

Keep It Simple

It’s tempting to create dozens of highly detailed categories, but that usually makes budgeting harder, not easier.

A better approach:

  • Start with broad, clear categories
  • Only add more detail if you actually need it

For example:

  • “Dining” is often enough—you don’t need separate categories for coffee, takeout, and restaurants
  • “Shopping” can cover most non-essential purchases

You can always refine later. The goal right now is to get up and running quickly.

How Categories Are Used

Every time you add a transaction in Mintly, you’ll assign it to a category.

This is what powers everything in your budget:

  • Your monthly totals
  • Your weekly cash flow
  • Your spending breakdowns
  • Your reports and insights

In other words, categories are what turn your budget into something you can actually understand and act on.

What’s Next

Once your categories are set, you’re ready for the next step:

Start adding your transactions — your income, bills, and expenses.

This is where your budget comes to life and your cash flow becomes visible.

Getting your categories set up is quick, but it’s one of the most important steps in building a budget that actually works.

Keep it simple, choose what fits your life, and move forward.

Try Mintly here: https://mintlybudget.com


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Location: Clermont, FL 34711, USA

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