Pepperdine's Robert Lee Breaks Down Smarter Budgeting in WalletHub

Pepperdine Graziadio Associate Professor of Accounting Robert Lee recently contributed his expertise to WalletHub, offering practical guidance on how individuals can better organize and manage their personal finances through effective budgeting categories.

In the feature, Lee explains that while budgeting looks different for everyone, a strong framework should always account for income, essential needs, and savings. He emphasizes that organizing expenses into clear categories, such as housing, transportation, food, and insurance, helps individuals distinguish between necessities and areas where spending can be reduced.

Lee also highlights common budgeting blind spots, noting that people often forget to plan for annual or irregular expenses like car repairs, property taxes, major technology purchases, and life events such as weddings or holiday gifts. Including these costs upfront can prevent financial surprises and support long-term stability.

When asked whether it’s possible to have too many budget categories, Lee points out that detail can be beneficial, as long as the individual can realistically track their spending. His advice: start with the most significant expenses first, then build out a system that reflects your real financial life.

Read more here.