How to Track Your Spending (Especially When You Use Credit Cards)
Tracking your expenses and figuring out where your money goes is foundational to managing your finances. Knowing where your money goes will help you figure out how to save money, pay off debt, and achieve your financial goals. But how do you do it?
At first glance, it seems like it should be simple: just categorize your expenses and add up how much you spent. But for most people, especially if you use multiple accounts or credit cards, tracking your spending is surprisingly complicated.
The good news is, with a clear process and a little practice, you can get a handle on your spending and start making your money work for you. In this guide, I’ll walk you through simple, practical steps to track your expenses—no matter how many accounts or cards you use—so you can finally see where your money is going.
Why Is It So Hard to Track Your Spending?
There are multiple reasons why it can be challenging to figure out where your money goes.
1. You never learned how and have never done it before
Although things are improving, most of us never had access to solid financial literacy classes in high school or college—maybe because everyone assumes it is so simple. Even if you did have a financial literacy class, chances are you forgot what you learned or didn’t pay attention because it didn’t seem relevant when you didn’t have bills to pay or much money to track.
If you don’t know how, don’t worry—you’re not alone. Like any new skill, it just takes some guidance and practice. Once you learn the basics, it’s much less overwhelming.
2. Irregular income and bill schedules
If you feel like it’s hard to figure out what’s happening with the money coming in and out of your accounts, you’re right—it is! You might have money coming in at different times on different schedules. For example, your paycheck might arrive every two weeks, but your rent is due monthly, and your partner’s income might change from month to month.
Then there are bills: some are monthly, others are yearly, quarterly, or on some other random interval. Some are always the same amount, while others change. Some expenses don’t occur on a schedule at all, and some only pop up once a year.
3. Multiple accounts and payment methods (checking, credit cards, cash)
Another reason it can be complicated is that you’re using multiple payment methods and accounts. For example, maybe some bills get paid out of your checking account, others go on a credit card, and sometimes you use cash.
As you can see, there’s a lot going on with your cash flow (money going in and out of your accounts), so it’s completely understandable if you’re having trouble figuring it out.
Now that you know why tracking your spending can feel so complicated, let’s look at why it’s worth the effort—and how you can get started.
Why Should You Track Your Money?
Knowing where your money goes is the key to creating an effective and realistic plan for managing it. As a financial coach, I’ve seen that many financial struggles, like debt or overspending, often come from not having a clear picture of what’s happening with your money.
When you don’t know how much you still need to pay in bills before your next paycheck, or how much is actually available to spend, it’s easy to fall into a pattern of just buying what you need and hoping for the best.
This approach is completely understandable. But having a system that shows you exactly what’s going on with your money can help you stay on track and make intentional decisions. You have to know where your money is going before you can decide where you want it to go—and then take steps to make that happen.
Your ultimate goal is to create a record of what money comes in and goes out each month. This lets you spot trends, notice when something is out of alignment with your priorities, goals, or values, and make informed choices. Tracking your spending is about building awareness and giving yourself the information you need to make the best financial decisions for you.
Getting Started: Choosing Your Tracking Method
There’s no one “right” way to track your spending. The best method is the one you’ll actually use consistently. Some people prefer a hands-on, low-tech approach, while others like the convenience and automation of digital tools. Here are the most common options, along with some pros and cons to help you decide which might work best for you:
1. Pen and Paper or Notebook
Writing everything down on paper can be a great way to build awareness and express your creativity. This is a great option for people who like to go beyond boring spreadsheets and templates. Plus, writing down your expenses gives you a greater sense of connection and helps you remember the information. This can be highly beneficial in increasing awareness, particularly when you’re seeking to make changes.
How to do it:
Every day, or every few days, write down every transaction from your bank accounts, cash receipts, and credit cards.
Record the category next to each transaction.
At the end of the month, add up transactions by category and create a summary of how much you spent in each one.
Another option is to use some Canva templates to create lists and overviews for each month and a yearly summary.
2. Spreadsheet
Spreadsheets offer a flexible and customizable way to track your expenses. You can create your own template or use a pre-made one. With a spreadsheet, you can set up categories, use color coding, and even create charts to visualize your spending over time. This method gives you a lot of control and is great for people who like to see the big picture and set up formulas to add things for you.
Like the pen and paper method, entering your numbers into a spreadsheet gives you greater awareness because you have to look at and record your transactions.
If you want a free template to use, sign up to get my Yearly Money Tracking Sheet and some more tips on how to use it.
How to do it:
Set up your spreadsheet by listing your bills and expense categories in the first column. Then list each month across the top.
Each month, go through your transactions and record the amounts of each bill and the total for each spending category under the appropriate month.
3. Budgeting App or Software
If you prefer a more automated approach, there are many apps that can link directly to your bank accounts and credit cards. These apps can automatically import, categorize, and even analyze your transactions. Some popular options offer real-time updates, spending alerts, and helpful visuals. This method is great if you want to track your spending with minimal effort.
There are two main downsides to using an app or software:
It often requires a paid subscription
When every transaction is imported and categories are totaled for you, you don’t build as much awareness of your spending patterns. It’s easy to just look at the totals without paying any attention to the details.
If you’re okay with those downsides, using an app can be a great way to keep track of your money.
How to do it:
Choose an app or budgeting software
Connect your accounts
Review everything monthly (or more often)
Which Method Should You Choose?
The most important thing is to pick a method that feels manageable and fits your lifestyle. If you’re just starting out, pen and paper or a simple spreadsheet might be all you need. If you want more automation and insights, try an app. You can always switch methods later as your needs change.
No matter which method you choose, the key is to be consistent. Set aside a regular time each week or month to review and update your records. Over time, you’ll build a clear picture of where your money is going—and that’s the foundation for making confident, intentional financial decisions
How to Track Your Spending
Step 1: Gather Your Information
Start by collecting records of every transaction from the previous month for every account you use to spend or pay bills—this includes bank accounts, credit union accounts, and credit cards.
You can do this by logging into your accounts and reviewing recent statements (just keep in mind that statement dates may not line up exactly with the calendar month). Alternatively, go to the “Transactions” section of your account and filter for all transactions from the previous month. Many banks let you print this list or download it as a CSV file (spreadsheet), which can make the next steps easier.
Step 2: List Transfers to Savings/Investments
Next, list any transfers you made to long-term savings or investment accounts—such as retirement accounts—that came out of your checking account (not amounts deducted from your paycheck before you get paid).
While transfers to savings and investments aren’t technically “spending,” tracking them helps you see where your money is going. When you move money to a retirement or investment account, you’re making it unavailable for other uses. In that sense, it’s similar to an expense—except you’re paying your future self.
Only include after-tax transfers you made yourself from your checking account. Don’t include payroll deductions like 401(k) or HSA contributions that come out before your paycheck hits your account.
Learn more: How to Save Money for Financial Goals
Step 3: List Your Fixed Expenses (Regular Bills)
Fixed expenses are bills that occur on a regular schedule—monthly, yearly, or another set interval. The amount might vary a bit, but you can usually anticipate roughly how much it will be.
Make a list of all your regular bills, including those that aren’t paid every month. It’s helpful to keep a master list with the bill name, due date, and typical amount as a reference. For your monthly review, just list the bills that were actually paid that month and their amounts.
If you’ve printed or downloaded your transactions, consider highlighting your bills in a specific color first to make them easy to spot. Then, create your list from there.
Note: If you’re carrying a balance on your credit card and making payments on past due amounts, include those payments as bills. If you pay your credit card in full each month, don’t list the payment as a bill—instead, track each individual expense as it occurs, even if it was charged to your card.
Step 4: Categorize All Other Spending
Now, decide which spending categories you want to track. Aim for 5–10 categories that will give you useful information without making the process overwhelming. There’s no right or wrong answer—choose what matters most to you.
Common categories include:
Food/Groceries
Gas/Transportation (including car washes, parking, etc.)
Health/Personal Care (prescriptions, medical care, haircuts, etc.)
Kids’ Expenses (childcare, activities, school supplies, clothes, etc.)
Gifts/Holidays
Travel/Vacations
Home Supplies/Maintenance
Clothes
Other Spending
You can also group expenses by store (for example, lumping all Target, Amazon, Walmart, and Costco purchases together) or track major retailers separately if you spend a lot there. It’s perfectly fine to have an “Everything Else” or “Miscellaneous” category for purchases that don’t fit anywhere else.
What you choose to track is completely up to you, but keep it as simple as you can while still making this a useful process. (Don’t try to track 30 different categories or spend time diving up each Target or Costco receipt.)
Once you’ve chosen your categories, go through your transactions one by one and assign each to a category.
Ways to Categorize:
Use colored markers or highlighters to mark transactions by category on your printed statements.
If you’re using a spreadsheet, add a column for the category and sort by category to total each group.
On paper or in a spreadsheet, list your categories across the top and record each transaction under the appropriate heading.
Step 5: Record and Total Expenses
After categorizing, add up the total amount spent in each category for the month. This will give you a clear picture of where your money went and help you spot patterns or areas to adjust.
Reviewing and Using Your Results
Now that you’ve tracked and categorized your expenses, you have a clear picture of where your money is going. But the real value comes from what you do with this information next. Here’s how to make your tracking work for you:
Check your total expenses against your total income to make sure you’re not overspending.
Review your spending and identify patterns to identify trends, spending increases, and areas of concern.
Make adjustments to lower bills that are too high or to reduce spending in one area to free up money somewhere else.
Make a money plan that is realistic (based on how much you’re spending) while also helping you use your money in alignment with your priorities, goals, and values.
Keep tracking and reviewing over time so you can see longer-term trends and make plans for the future.
Your spending data is a powerful tool. Use it to understand your habits, make informed decisions, and create a plan that supports your values and goals. With regular review and small adjustments, you’ll find it easier to stay on track and make real progress toward the financial future you want.
Special Situations: Cash, Credit Cards, BNPL, and Irregular Expenses
Tracking your spending isn’t always as simple as logging every debit card purchase. Some situations—like cash transactions, credit cards, Buy Now Pay Later (BNPL) plans, and irregular expenses—require a little extra attention. Here’s how to handle these special cases:
Cash Expenses
Cash transactions can be tricky to track because there’s often no automatic record. Here are some practical ways to stay on top of your cash spending:
Keep a cash log: Carry a small notebook or use a note-taking app on your phone to record cash purchases as they happen.
Save receipts: Ask for receipts whenever possible and record them later.
Envelope method: Put all the cash you plan to spend for the month in an envelope. Write down the starting amount, then track how much is left at the end of the month. You can either record the total as “cash expenses” or try to assign amounts to specific categories based on your memory or receipts
Choose the method that feels easiest for you, but the key is to be consistent so you don’t underestimate your spending.
Credit Card Transactions
Credit cards can make tracking more complicated, but once you have a system, it’s manageable:
Record transactions by purchase date: Go through each credit card statement or transaction list and record purchases in the month they occurred (e.g., groceries bought on April 14 go in April, even if the bill is paid in May)
How to handle payments:
If you pay your full statement balance every month, don’t list the credit card payment as a separate bill—you’re already tracking each purchase as it happens.
If you’re carrying a balance and making payments on past due amounts, list those payments under your fixed expenses or bills.
Alternative method:
If it’s easier, you can track only the credit card payment each month instead of each transaction. Just make sure you don’t double-count by recording both the payment and the individual purchases. Note that this method won’t let you see exactly where your money is going, since you lose the ability to categorize purchases.
Tip: If you’re working to pay off credit card debt, consider pausing new credit card spending until your debt is gone. This makes tracking simpler and gives you a clearer picture of how much you have available to spend.
Buy Now Pay Later (BNPL)
BNPL plans are the ones that offer you the option of making several smaller payments instead of paying the full price up front. They are offered through services like Affirm, AfterPay, Klarna, PayPal, and sometimes even your credit card.
When tracking these:
Record each payment: Log each BNPL payment in the month you make it, and assign it to the appropriate spending category
Keep a running list: For ongoing BNPL plans, keep a simple list of outstanding balances, payment amounts, and due dates (a note on your phone or a spreadsheet works well)
Learn more about using Buy Now Pay Later.
Irregular Expenses
Not all expenses happen monthly—think annual insurance premiums, holiday gifts, summer camp, or unexpected car repairs. Here’s how to handle them:
Record when spent: Always track the actual amount in the month the transaction occurs, even if it’s not a regular bill
Plan ahead: To avoid being caught off guard, make a list of all your irregular expenses for the year. Estimate the total and divide by 12 to set aside a little each month (often called a “sinking fund”). Learn more: How to Budget for Irregular Expenses
Give yourself a buffer: Keep extra money in your account as a buffer to help you prepare for surprise expenses, so you don’t have to rely on debt when something pops up (Yes, this can be part of your emergency fund.)
Final Tips for Tracking Your Spending
Tracking your spending is one of the most powerful steps you can take to gain control over your finances. While it might feel overwhelming at first—especially if you use multiple accounts, credit cards, or have irregular expenses—remember that it’s a skill anyone can learn with a little guidance and practice.
Once you’ve gathered your information, categorized your expenses, and reviewed your spending, you’re already ahead of the curve. The real benefit comes from using this information to make intentional decisions about your money. You’ll be able to spot trends, identify areas where your spending doesn’t align with your values or goals, and make adjustments that help you move forward.
Tips for Success:
Keep it simple. Start with just a few categories and the tracking method that feels easiest. You can always refine your process later.
Be consistent. Set a regular “money date” each month to review your spending, update your categories, and reflect on your progress.
Don’t aim for perfection. Missing a transaction or forgetting a receipt isn’t the end of the world. What matters is building awareness and making progress over time.
Use your data. Let your spending records guide your budget, help you prepare for irregular expenses, and support your financial goals.
Celebrate your wins. Every month you track is a step toward greater clarity and confidence with your money.
Remember, tracking your spending isn’t about restriction—it’s about empowerment. The more you know about where your money goes, the more control you’ll have to direct it where you want it to go. With practice, this process will become second nature, and you’ll be well on your way to building the financial life you want.
If you’re ready to take the next step, check out my tracking template and detailed guide for even more support on your journey!
