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How to Track Your Spending for a Month

4 min read

Summary: Before you can plan your money, it helps to see where it goes. Tracking your spending for a month gives you that picture, with no judging.

Why track

Many people guess their spending and guess wrong. The US Consumer Financial Protection Bureau (CFPB) says a spending tracker gives clarity about your spending habits. It suggests filling one out for at least two weeks, or even a month. A month covers more of your regular bills and your ordinary weeks.

Tracking is not a test. You are collecting facts. You can decide what to do with them afterwards.

What you need

Steps

  1. Choose a start date. Begin on any day, but plan to keep going for the full period.
  2. Write down every payment. Include small ones. The CFPB's worksheet lists "not thinking about the money I spend when using my debit or credit card" as a common challenge, so card payments are worth noting.
  3. Sort them into categories. Do not worry about perfect labels.
  4. Look at the totals at the end. Add up each category.
  5. Ask a few questions. The CFPB suggests asking:
  1. Write down one change. Keep it small.

Check your statements while you do it

Looking through your statements also lets you spot mistakes. Your Europe, the EU's official guide for citizens, says that if a direct debit is wrong or taken by mistake, you have the right to a refund within 8 weeks. This applies to domestic and cross-border direct debits in the EU. If you do not look, you may miss it.

Your Europe also says a hotel or a car hire company may block an amount on your card. Once the real bill is paid, the bank must release the blocked money. If a block stays on your card, it is worth a call to your bank.

Rules outside the EU can differ. If you live elsewhere, check your own consumer body or bank.

Keep track between statements

The CFPB suggests checking your account balances regularly and signing up for balance alerts from your bank. It notes that some balance-checking services may carry fees, so ask your provider.

An example

This is an example with made-up amounts.

Mia tracks one month. At the end she adds up her categories: housing 700, food 280, transport 90, bills 110, fun 150, other 60. The total is 1,390. Her take-home pay is 1,500. She is surprised by two things: 'other' includes several small card payments she had forgotten, and she finds a subscription she no longer uses. She writes one change: cancel the subscription. Next month she will see if 'other' goes down.

When it feels like a hassle

The CFPB lists this as common: people do not track because it feels like a hassle, or too complicated and slow. If that sounds like you, try a shorter period or fewer categories. Even a week gives you some picture. You can try a full month later.

What comes next

Once you know your spending, you can start building a budget. The CFPB says to use the results to set priorities. Our guide on making your first budget shows how to do it.

Sources