Post 2 in the “How to Get Started Managing Your Personal Finances” Series
This week, I’m going to ask you to take a deeper look at your spending habits. Personally, I love doing this—it gives me so much insight into what’s really been happening with our money.
I used to do this exercise a couple of times a year, and—honestly—I was always a little shocked at what I found. Especially when it came to eating out. I love eating out—probably too much. During COVID, my husband and I sat down and realized we had spent several thousand dollars at one restaurant over the course of a year. Yikes. That was not how we wanted to be using our money.
But here’s the thing—that moment, though humbling, was empowering. Because once we saw it, we could change it.
This kind of honest awareness is the first real step in managing your finances: understanding where your money is actually going right now.
Why This Matters
Most of us think we know where our money goes—but the reality is often surprising. Whether it’s takeout, Amazon orders, or those mysterious Target runs, it’s easy to lose track.
But here’s the truth:
- You can’t change what you don’t understand.
- Seeing your spending clearly helps you recognize where your money already aligns with your values—and where it doesn’t.
- You’ll likely notice patterns: leaks, blind spots, or emotional spending you never realized was there.
This isn’t about shame or judgment. It’s about getting honest and curious so you can move forward with more intention.
How to Start Tracking
There’s no one “right” way to do this—just choose a method that feels doable and get started. Here are a few options:
Option 1: The Deep Dive
This is my go-to method—no fancy apps, just me and an Excel sheet.
- Gather all your spending accounts – list out your bank accounts, credit cards, and anywhere else money exits.
- Export your statements and bring them into one spreadsheet. You can use Excel or Google Sheets. You can keep them on separate tabs or consolidate them—whatever makes the most sense for you.
- Categorize your spending. Next to each expense line, assign it a a category. My usual categories include eating out, groceries, utilities, transportation, home improvement, pets, health, etc. There’s no “right” list—use what feels relevant to your life.
- Summarize. How much are you spending in each category per month? Are there any surprises? What categories seem out of sync with your values? Pro tip: If you aren’t too familiar with spreadsheets, search how to do a ‘sumifs’ formula, it will really help in your analysis.
- If it’s your first time, try going back 12 months. If that feels like too much, start with the last 3 months. The goal isn’t perfection—it’s insight.
Option 2: Use What’s Already Available
Some credit cards and banks provide spending summaries by category. Log in to your online portal and see what kind of reports are available. If you have multiple accounts, check each one to get the full picture. This might be all you need to get started.
Option 3: Start From Today
If the idea of looking backward feels overwhelming, no problem—start tracking from today. Write down every expense moving forward. I recommend using Excel or Google Sheets instead of paper—it makes it easier to sort and analyze later.
🌱 A Foundational Step
This stage is the foundation of your entire financial journey. Before you can make intentional changes or build a budget that reflects your values, you need to understand what’s really happening with your money right now. Awareness always comes before control—and the insight you gain here will guide every step that follows.
A Note on Expense Tracking Apps
There are plenty of apps that can help track spending automatically. While they can be helpful, I suggest holding off on them until you have a clearer sense of your budget and values.
Many apps are freemium (limited unless you pay) and may not allow full account linking without upgrading. If you do try one, look for a free trial—but remember to cancel before it charges you.
Apps are just tools. You are the expert on your own life.
Reflection Prompts
This step is about connection—between your money and your life. As you review your spending, pause and reflect:
- What surprised you about your spending?
- What purchases feel aligned with your values and priorities?
- Where are you spending out of habit, stress, or convenience?
- What’s one small change that could help your spending feel more intentional?
You might notice spending on things that don’t bring you joy—or realize there’s something important you’ve been overlooking. Either way, you now have insight to help you make thoughtful, empowered decisions.
What’s Next
Now that you’ve taken this first step—understanding where your money is going—the next post will help you align your spending with what actually matters most to you.
Remember: this is a process. You’re not behind. Just by showing up and paying attention, you’re doing something powerful—and your future self will thank you for it.
If you’re comfortable, leave a comment on how this exercise went and what you learned!
Leave a comment