Most people have no idea where their money goes. They earn, they spend, and at the end of the month wonder why there's nothing left. Tracking expenses is the first step to fixing that.
Why Track Expenses?
- Awareness: See exactly where your money goes (spoiler: it's probably food and subscriptions).
- Find leaks: Spot the small recurring charges you forgot about.
- Make better decisions: Hard to justify $200/month on coffee when you see it written down.
- Hit your goals: Want to save for a trip? You need to know what to cut first.
4 Methods to Track Expenses
1. Pen and Paper
Old school but effective. Carry a small notebook and write down every purchase.
2. Spreadsheet
Google Sheets or Excel. Create columns for date, description, category, and amount.
3. Bank/Credit Card App
Most banking apps now categorize spending automatically. Check your app's insights section.
4. Budgeting App
Purpose-built apps like BudgetLeague let you log expenses, set budgets, and track progress.
How to Categorize Expenses
Don't overcomplicate it. Start with these broad categories:
🏠 Housing
Rent, mortgage, property tax, repairs
🚗 Transportation
Car payment, gas, insurance, transit, Uber
🛒 Groceries
Supermarket, food shopping only
🍕 Dining Out
Restaurants, takeout, coffee shops
💡 Utilities
Electric, water, gas, internet, phone
🎉 Entertainment
Streaming, games, concerts, hobbies
🛍️ Shopping
Clothes, electronics, home goods
🏥 Health
Insurance, doctor visits, gym, medications
Tips for Consistency
- 1. Track immediately: Log purchases right after you make them. Waiting = forgetting.
- 2. Set a daily reminder: 5 minutes before bed to log anything you missed.
- 3. Use one payment method: Easier to track if everything goes through one card.
- 4. Don't stress small stuff: Missed a $2 purchase? It's fine. Trends matter more than perfection.
- 5. Review weekly: 10 minutes on Sunday to see how you're doing.
What to Do with the Data
Tracking is useless if you don't act on it. After a month:
- Find your biggest category: Usually dining out or shopping. Can you cut 20%?
- Spot subscriptions: Cancel the ones you forgot about.
- Set a budget: Use your data to create realistic spending limits.
- Compare months: Are you trending up or down?
Track + Compete
BudgetLeague makes expense tracking fun by letting you compete against friends. See who sticks to their budget best.
Start tracking free →