I track all cash in/out monthly and have been doing so for the past 21 years. Needs are above-the-line obligations, wants are below-the-line discretionary. The buckets change as our life changes. For example, I no longer need to track pet or education expenses and, eventually, I’ll add SS and portfolio disbursements, which I’ve added here for example purposes:
Now that everything is online, this is a trivial exercise, and enables me to easily track and compare buckets across time. It also made retirement planning incredibly clear and simple.
ETA: Household repairs/maintenance belong above the line, of course, but I never seem to get around to making that change.