Tracking Your Expenses – Know Your Number

One of the most common financial frustrations people face is feeling like their money disappears almost as soon as it comes in. By the end of the month, it’s easy to wonder, “Where did it all go?” Or as Larry Burkett famously put it, “There’s more month at the end of the money.”

But often, the issue isn’t that we’re wildly overspending — it’s that we’re not fully aware of where our money is going in the first place. Most people underestimate how much they spend, especially on small, everyday purchases. The $5 coffee, the $1 vending machine snack, the $20 impulse buy — they seem harmless in the moment. But over time, these little expenses quietly add up and drain our resources.

Without clear visibility, even minor purchases, recurring charges, and surprise expenses can slowly eat away at our budget — and we don’t even realize it until it’s too late. That’s why this week, we’re focusing on a foundational financial habit: tracking your expenses.

When you start tracking every dollar — no matter how small — you shine a light on your spending habits. You gain clarity, control, and the ability to make more intentional decisions with your money. And it’s not about guilt or judgment. It’s about awareness. And awareness is the first step toward wise stewardship and lasting financial transformation.

💡 This Week’s Focus: Know Your Number

This week, we’re taking a practical first step toward financial clarity: tracking your expenses. Think of this as shining a flashlight into the dark corners of your spending. It’s not about restricting yourself — it’s about revealing patterns you may not realize are there.

Even the smallest transactions tell a story. When you track them, you begin to see where your money is actually going — not where you think it’s going. This insight helps you align your spending with your values and your goals.

Small steps lead to big change. And building the simple habit of writing things down is the first step toward stewarding every dollar with intention.

📖 Key Verse:
Proverbs 21:5 (ESV): “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.”

Proverbs reminds us that diligence — steady, faithful attention to the details — leads to abundance. When we rush, ignore, or guess at our financial situation, we miss opportunities and fall into unnecessary struggle. But when we slow down, track faithfully, and plan thoughtfully, we position ourselves for peace, stability, and growth.

Tracking is an act of diligence. It’s a way of honoring God with careful stewardship of the resources He has entrusted to us.

👉 Your Goal This Week: Track Every Dollar You Spend

🔹 How to Track Your Expenses

If you’ve never tracked your spending before, don’t worry — it’s simpler than you might think. You don’t need fancy tools or complicated systems.

All you need is a method you’ll actually use — and the commitment to record every dollar.

Here’s how to get started:

Step 1: Gather Your Bank and Credit Card Statements

Before you can start tracking your expenses, you need to see where your money has actually been going. This step is all about collecting the raw data so you can work from real numbers — not guesses.

Action Steps:
• Pull at least one full month of transactions. For a clearer picture of your spending habits, go back three months if possible. Patterns become more obvious when you look at more than just a single month.
• Download or print your bank and credit card statements. Don’t forget accounts you may use less frequently — like a store credit card, a PayPal account, or a separate account for bills.
• Review every transaction — not just the big ones. It’s easy to overlook small purchases, but these often have the biggest impact over time. That $7 subscription, $3 coffee, or $12 takeout order might not seem like much in the moment, but they add up fast.

Tip: If you’re a visual learner, print your statements and grab some highlighters or colored pens. Mark up spending categories or recurring charges. If you prefer digital, copy and paste your transactions into a spreadsheet or use a tool like Google Sheets or Excel where you can sort and label as you go.

Step 2: Track Cash Spending, Too

Cash purchases may be small, but they’re easy to forget — and they add up quickly. Whether it’s a coffee run, vending machine snack, tip jar, or parking meter, cash expenses count and should be tracked just like your card transactions. If you don’t write them down, they’ll likely disappear from your memory — and your budget.

Action Steps:
• Carry a small notebook or tracker. Keep it in your wallet, purse, or car — wherever it’s easy to grab. Prefer digital? Use the notes app on your phone or a simple expense tracker app.
• Record every cash transaction right after you spend it. Don’t wait until later. Even $1 or $2 counts — the goal is total visibility into where your money goes.

Tip: Set a reminder on your phone each day to log your cash expenses, especially if you tend to forget by the end of the day. You could also clip a sticky note inside your wallet as a daily visual cue.

Step 3: Don’t Forget About Irregular Expenses

Some of your most important expenses don’t show up every month — but they still need to be part of your financial plan.

These might include:
• Car insurance (paid every 6 months)
• Property taxes
• Annual subscriptions or memberships
• Back-to-school shopping
• Holiday gifts
• Routine medical or dental visits

Tip: Estimate the total amount you spend on these irregular expenses in a year, then divide by 12. That’s how much you should set aside each month to stay prepared.

For example, if your car insurance is $600 every six months, that’s $1,200 per year. Divide that by 12, and you’ll want to set aside $100 per month to cover it when it comes due.

Including irregular expenses in your average monthly spending gives you a more accurate picture — and protects you from surprises down the road.

Step 4: Organize Your Spending into Categories

Once you’ve tracked your expenses for at least a month (or reviewed the past few), it’s time to take the next simple — but eye-opening — step:

Group your spending into broad categories. This helps you see not just what you’re spending, but where your money is going most often — and whether it lines up with your values and goals.

How to Categorize Your Expenses

Look over all your recorded transactions and assign each one to a general category. You don’t need to be ultra-specific — just aim for clarity.

Here are some common examples:

Tip: Don’t overcomplicate it. Stick with broad groups for now — you’re aiming for a clear and useful snapshot, not an accounting report.

Step 5: Choose a Tracking Method — and Use It Consistently

There’s no one-size-fits-all way to track your expenses. The “best” method is the one you’ll actually stick with. Some people prefer writing by hand, others love apps or spreadsheets — the key is to find a system that fits your lifestyle and make it a daily habit.

Options to Try:
• Notebook & Pen: Great for those who enjoy writing things out. This method makes you pause and reflect, which helps build mindfulness around spending.
• Spreadsheet (Google Sheets or Excel): Create columns for date, category, and amount. Add formulas to total your spending by category and by month. It’s flexible, and you’re in full control.
• Budgeting Apps: Tools like Mint, EveryDollar, YNAB, or Spending can sync to your accounts and categorize transactions automatically. Just remember — you still need to review and adjust categories to stay engaged.

Important Reminder: No matter what tool you use — record every expense. Every. Single. One. From your rent payment to the $1.25 candy bar at checkout, it all matters. Small leaks sink ships. Tiny purchases can add up and derail your budget just as easily as big ones. By tracking everything, you stay in control and fully informed.

Tip: Start simple. Don’t overthink it. You can always refine your system later — but building the habit of consistent tracking is what matters most right now.

🔹 Now You Know Your Average Monthly Spending

After tracking your expenses and organizing them into categories, you now have one of the most powerful numbers in personal finance: Your true average monthly spending.

This is your baseline — the number that tells the real story of how much it costs to live your life, support your family, or run your business each month.

Why this matters:
• It shows you exactly what you need each month to cover your current lifestyle and responsibilities.
• It helps you plan for the future — whether you’re building savings, giving generously, investing wisely, or preparing to grow your business.
• It replaces guesswork with clarity — and gives you a firm foundation for wise decision-making.

What to do next:
Now that you’ve uncovered your true spending number, it’s time to build a rhythm around reviewing it. Whether you do it weekly, biweekly, or monthly, choose a cadence that works for you — and stick with it. This one simple habit will keep you aware, grounded, and confident as you continue building your financial plan over the coming weeks.

🎯 Weekly Challenge:

• Review your past bank and credit card statements — go back at least one full month (three months is even better for spotting patterns).
• Add up your total spending for each month to get a clear picture of your average monthly expenses.

📖 Reflection Questions
• Do I know exactly how much I spend each month?
• Are there areas where I might be underestimating my spending?
• How do I feel about tracking my expenses—eye-opening or uncomfortable?

📢 What’s Coming Next

Next week, we’ll answer an important question: What’s left over? You’ll learn how to spot whether you have an income or spending problem — and what that means for your next step.

💬 What’s one expense category you think might surprise you? Reply and share!

🔁 New here or missed a few? You can read all the previous newsletters right here: financebyfaith.beehiiv.com

Blessings and financial peace to you!

Sigrid Wardlaw
Wardlaw CPA | Helping clients steward finances with wisdom
📧 [email protected]| 🌐 www.wardlawcpa.com