# Expense Categorization Guide

## I. Expense Classification System

### Primary Categories

1. **Fixed Expenses** - Essential expenses with relatively stable amounts
2. **Variable Expenses** - Expenses that vary with usage
3. **Periodic Expenses** - Expenses that don't occur monthly but appear regularly
4. **Unexpected Expenses** - Unplanned emergency expenses

## II. Detailed Category Descriptions

### (A) Fixed Expenses

#### 1. Housing Related

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Rent | Rental housing costs | Monthly rent, quarterly rent |
| Mortgage | Home loan payments | Principal + interest |
| Property Fees | Property management fees | Community management fees |
| Home Maintenance Fund | Special repair funds | Annual or per-occurrence |
| Heating | Winter heating costs | Calculated by area |

#### 2. Communication Fees

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Mobile Phone | Mobile communication fees | Plan fees, data charges |
| Internet | Network access fees | Home broadband |
| Cable TV | TV signal fees | Cable TV, IPTV |
| Landline | Fixed phone fees | If applicable |

#### 3. Insurance Fees

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Health Insurance | Medical insurance | Commercial medical insurance |
| Life Insurance | Life insurance premiums | Term life, whole life |
| Accident Insurance | Accident insurance | Comprehensive accident insurance |
| Property Insurance | Property insurance | Home insurance, auto insurance |
| Retirement Insurance | Supplementary pension | Commercial retirement insurance |

#### 4. Subscription Services

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Video Membership | Streaming subscriptions | Netflix, Hulu, Disney+ |
| Music Membership | Music services | Spotify, Apple Music |
| Software Subscriptions | Tool software | Office 365, Adobe, Cloud storage |
| Membership Services | Other memberships | Gym, book clubs, shopping memberships |
| News & Information | Paid content | Financial news, premium content |

---

### (B) Variable Expenses

#### 1. Food Expenses

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Daily Meals | Regular meals | Cafeteria, fast food, takeout |
| Grocery Shopping | Cooking at home | Supermarket groceries, fresh food |
| Dining Out | Restaurant meals | Gatherings, entertaining, dates |
| Snacks & Beverages | Casual food | Snacks, coffee, bubble tea |
| Alcohol & Tobacco | Habits | Cigarettes, alcoholic beverages |

#### 2. Transportation

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Public Transit | Bus & subway | Metro, bus, taxi |
| Personal Vehicle | Car usage costs | Fuel, parking, tolls |
| Vehicle Maintenance | Maintenance & repairs | Maintenance, repairs, car washes |
| Shared Mobility | Bike/car sharing | Bike shares, ride-sharing |
| Long-distance Travel | Inter-city travel | Train, plane, long-distance bus |

#### 3. Shopping Consumption

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Clothing & Accessories | Apparel | Clothes, shoes, accessories |
| Daily Necessities | Household items | Personal care, cleaning, paper products |
| Digital Electronics | Electronic products | Phones, computers, accessories |
| Home Goods | Home furnishings | Furniture, textiles, decorations |
| Beauty & Skincare | Cosmetics | Skincare products, makeup |

#### 4. Entertainment & Leisure

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Movies & Shows | Cultural entertainment | Movie tickets, show tickets |
| Travel & Vacation | Travel expenses | Tickets, accommodation, transportation |
| Sports & Fitness | Physical activities | Personal training, sports equipment |
| Gaming | Gaming related | Game purchases, equipment |
| Hobbies & Collections | Personal interests | Books, collectibles, hobbies |

#### 5. Healthcare & Medical

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Outpatient Visits | Medical visits | Registration, examinations, medication |
| Medication | Daily medicines | Regular medications, health supplements |
| Health Checkups | Health examinations | Annual physicals, special screenings |
| Medical Equipment | Medical supplies | Blood pressure monitors, glucose meters |
| Mental Health | Psychological health | Counseling services |

#### 6. Education & Learning

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Tuition | Formal education | School tuition |
| Training Courses | Professional training | Certifications, skill training |
| Books & Materials | Learning materials | Textbooks, reference books |
| Online Courses | Online learning | E-learning platforms |
| Educational Tools | Learning supplies | Stationery, electronic devices |

---

### (C) Periodic Expenses

#### 1. Annual Fixed

| Category | Description | Examples |
|----------|-------------|----------|
| Auto Insurance | Vehicle insurance | Liability, comprehensive coverage |
| Annual Inspection | Vehicle inspection | Inspection fees |
| Property Tax | Property-related taxes | If applicable |
| Annual Property Fees | Annual property management | If paid annually |
| Heating Fees | Annual heating | If paid annually |

#### 2. Quarterly Expenses

| Category | Description | Examples |
|----------|-------------|----------|
| Quarterly Insurance | Quarterly payment insurance | If applicable |
| Quarterly Property Fees | Quarterly payments | If applicable |

#### 3. Holiday Expenses

| Category | Description | Examples |
|----------|-------------|----------|
| Spring Festival | New Year expenses | Holiday goods, red envelopes, gifts |
| Mid-Autumn Festival | Holiday expenses | Gifts, gatherings |
| Birthday Expenses | Birthday gifts | Gifts, celebrations |
| Anniversaries | Celebration activities | Gifts, celebrations |

---

### (D) Social Relationships

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Social Obligations | Gift money & red envelopes | Weddings, baby showers, housewarmings |
| Gift Giving | Presents | Holiday gifts, visiting gifts |
| Hosting | Entertainment expenses | Treating friends, colleagues |
| Supporting Parents | Family expenses | Money/gifts for parents |
| Children's Expenses | Child-rearing costs | Tuition, toys, clothing |

---

### (E) Financial Related

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Loan Repayments | Debt repayment | Credit cards, consumer loans |
| Interest Expenses | Loan interest | Loan interest charges |
| Service Fees | Financial fees | Transfer fees, annual fees |
| Investment Losses | Investment losses | Stocks, fund losses |

---

### (F) Other Expenses

| Subcategory | Description | Examples |
|-------------|-------------|----------|
| Pet Expenses | Pet care costs | Food, medical, supplies |
| Charitable Donations | Philanthropy | Donations, contributions |
| Fines & Compensation | Unexpected expenses | Traffic fines, compensation |
| Miscellaneous | Hard to categorize | Other expenses |

## III. Category Usage Guidelines

### Classification Principles

1. **Mutually Exclusive**: Each expense belongs to only one category
2. **Comprehensive**: All expenses can be categorized
3. **Consistent**: Maintain stable classification standards
4. **Practical**: Facilitate analysis and decision-making

### Classification Granularity

**Choose based on personal needs**:

- **Simple Version**: Use only primary categories (Fixed/Variable/Periodic)
- **Standard Version**: Use secondary categories (e.g., Food, Transportation)
- **Detailed Version**: Use tertiary categories (e.g., Food - Dining Out)

### Common Categorization Questions

#### Q1: Is takeout food or other?
A: Categorize under "Food - Daily Meals" or "Food - Dining Out" based on purpose

#### Q2: Is work-related training education or work?
A: Categorize under "Education - Training Courses", note "work-related" in remarks

#### Q3: How to categorize money given to parents?
A: Categorize under "Social Relationships - Supporting Parents"

#### Q4: How to record investment and financial management?
A: Investment principal is not an expense; investment losses go under "Financial Related - Investment Losses"

## IV. Category Ratio References

### Healthy Financial Structure Reference

| Category | Suggested Ratio | Notes |
|----------|-----------------|-------|
| Housing | 25-35% | Rent/mortgage |
| Food | 10-15% | Daily meals |
| Transportation | 10-15% | Travel expenses |
| Insurance & Savings | 10-20% | Protection + savings |
| Other Living | 20-30% | Shopping, entertainment, etc. |

### Warning Thresholds

- Housing expenses > 40%: Too high, may affect quality of life
- Food expenses > 20%: Possibly too extravagant
- No insurance/savings: Higher risk, recommended to configure

## V. Custom Categories

### When Custom Categories Are Needed

1. Standard categories don't meet needs
2. Special expenses need separate tracking
3. Special occupation/lifestyle requirements

### Customization Suggestions

1. Maintain compatibility with standard categories
2. Avoid over-detailing (suggest no more than 20 categories)
3. Regularly review category rationality
4. Record category definitions for future reference

### Custom Category Examples

- **Freelancers**: Add "Business Expenses" category
- **Families with Children**: Expand "Children's Expenses" subcategories
- **Pet Owners**: Independent "Pet Expenses" category