Gratuity & Tips in Personal Budget

Drunk_Monkey

Hi there

Getting on top of a good budget & being ultra-specific my expense categories in my budget.

I don't think tips left in cash should go towards the cost of the food under the "food" - more of a "present" under personal as it has nothing to do with food.

My major categories are:

Transport
Food
Utilities
Healthcare
Household
Entertainment
Personal
Bank Charges
Bigs (This is an expense that's predictable in nature, but not in timing.)
Expenses

I have various mini-categories.

let me know your thoughts.

Thanks,.

grumbler

It doesn't matter how you class it as long as you are consistent.
Personally, I don't do this sort of budgeting, but if I did, I would separate 'eating out' from 'food' and and counted the tips towards the former.

Flobberchops

It should go under food. Would you ever leave a waiter a tip if you hadn't also ordered food?

boliston

I think you can get too bogged down in detail -

I prefer to keep it simple (i use quickbooks)

Food (including drink & meals out)
Sundry (eg pet related, haircuts, cigars etc)
Bills (gas, electric, broadband, mortgage)
Car (petrol, mot etc)
Holiday costs (hotels, flights, trains, kennels etc)
Gifts (birthdays, christmas etc - NOT tips lol!)

Also "other" expenditure (separately subtotalled) for one-off large purchases like new washing machine, computer, phone etc

datlex

I would put eating out under entertainment not food. Also I don't agree with tipping so would not put that in any category. It seems to be only certain jobs which feel entitled to a tip. Many people will argue they give tips because of the perceived low wage of the person serving. However there are many low paid jobs. When was the last time you tipped the cleaner at your local supermarket for example?

boliston

datlex wrote: »

I would put eating out under entertainment not food. ...

I can't see anything particularly "entertaining" about eating out, unless perhaps I was on business and was expected to "entertain" a client.

I generally eat because I am hungry rather than to be "entertained" lol

Brambleberry

It is entirely up to you to decide where each expense belongs best.

I put some food spends under different categories, because they are different situations - e.g. food on the go between meetings goes on my "personal" spending, because I chose to buy instead of plan ahead, its the same with non-essential treat goodies.

Meals where a tip is involved usually come under my "holidays/fun" budget, and occasionally the cash tip will come from my wallet while the bill is paid by card.

The best tip I can offer you is not to worry about your specific categories too much, this is your budget and you can adjust them as you begin to get a sense of how your cash flow is working. Sometimes mini categories are more helpful so you don't get mixed up having several expenses in one.

MisterMotivated

Brambleberry wrote: »

It is entirely up to you to decide where each expense belongs best.

Yep, it's completely up to you and you might decide to change it over time.

My budget contains separate categories for food at home, food at work (so I can see how much I waste unnecessarily on sandwiches, crisps, etc), and eating out. I treat tips as part of the overall cost of "eating out".

Anthorn

I only ever tip taxi drivers and waiters/waitresses and the tip is just included in the cost. The restaurant where I eat has a space on the bill to add a tip and I do that. It is printed on the bill that the tip is shared by those who served me (waiter, waitress, wine waiter/waitress) but I'm a little suspicious of that. I asked a waitress about that only last week and she said they keep a running total of tips. Usually I do 10%.

Shakin_Steve

My budgeting is far simpler than this. I don't drink, smoke, eat out, go to the cinema or even speak to anyone if I can help it. Life is simpler that way.