Regular is your baseline. Extra is the noise around it.
Use Regular for spending that belongs to ordinary monthly life: groceries, rent, transport, utilities, phone, insurance, subscriptions, childcare, and normal eating out if that is part of your routine. Use Extra for spending that would distort your usual month: holidays, gifts, furniture, repairs, a new phone, special events, or other exceptional purchases.
The practical test
Ask: “Would this make my normal month look misleading?” If yes, it probably belongs in Extra. The point is not to label a purchase as good or bad. The point is to make month-to-month comparisons more useful.
Consistency beats clever categorising
The split does not need to be perfect. It needs to be consistent enough that you can recognise your baseline when you review it later.
Want to apply the method to your own budget?
See the 1-to-1 budget setup session or start with the free spreadsheet.