Most people have a general idea of their bills and major expenses. Often, it’s the small, everyday purchases—coffee runs, takeout meals, impulse buys—that often go unnoticed. If you’re trying to save money but aren’t sure where to start, there’s one simple step that can make a big difference: track your spending for a month. It may sound like a big task, but this insight can lead to big financial savings and savvy money decisions. Here’s the scoop:
Spending Awareness
Seeing the numbers in black and white can be eye-opening. Maybe you’re spending $50 a month on subscriptions you forgot. Or what about that $150 on snacks and drinks during your commute over the month? Get to know where your money is really going.
Better Budgeting
With a clear view of your expenses, you can build a budget that reflects your actual habits—not just what you think you spend. Does your spending align with your values and goals? How can you better align it?
Identifying Waste
You’ll spot areas where you can cut back without sacrificing much. That daily $5 coffee? Cutting it down to three days a week could save you $90 a month. That an extra $1,080 each year in your pocket!
Goal Motivation
Mindful awareness of your spending brings your financial goals into focus. Whether you’re saving for a vacation, paying off debt, or building an emergency fund, seeing progress can be motivating. It doesn’t mean giving up all impulse or indulgent purchases – but you may become more mindful when it comes to these purchases.
How to Get Started
First, check your banking app – they may already have a spending breakdown prepared for your review! Or, on your own, track everything, or make sure your bank statement does – from rent and groceries to small cash purchases. Be consistent, and don’t skip days. At the end of the month, review your spending and highlight categories where you can adjust.
The Bottom Line
Tracking your spending doesn’t require a financial degree—just a bit of consistency and honesty. One month is all it takes to gain valuable insight and start making smarter decisions with your money. Try it, and your future self will thank you.
Written by: Stephanie Anklan, Registered Dietitian
