Tracking Your Expenses

Why Track Expenses?

You can’t manage what you don’t measure. Expense tracking helps you:

• Understand spending patterns
• Identify areas to cut back
• Stay within budget
• Reach financial goals faster

Methods for Tracking

1. Spreadsheet Method

Simple and customizable:

import pandas as pd

expenses = [
    {"date": "2025-11-01", "category": "Food", "amount": 45.50, "description": "Groceries"},
    {"date": "2025-11-02", "category": "Transport", "amount": 30.00, "description": "Gas"},
    {"date": "2025-11-03", "category": "Entertainment", "amount": 15.99, "description": "Netflix"},
]

df = pd.DataFrame(expenses)
summary = df.groupby("category")["amount"].sum()
print(summary)

2. App-Based Tracking

Popular options:

• Mint: Free, automatic bank sync
• YNAB: Zero-based budgeting
• Personal Capital: Investment tracking included
• Copilot: AI-powered insights

3. Envelope System

Physical or digital “envelopes” for each category:

Best Practices

1. Track everything: Even small purchases add up
2. Categorize consistently: Use the same categories each month
3. Review weekly: Don’t wait until month-end
4. Be honest: Include cash spending and subscriptions
5. Look for patterns: Identify problem areas

Common Expense Categories

• Housing (rent/mortgage)
• Utilities
• Food (groceries + dining)
• Transportation
• Healthcare
• Insurance
• Debt payments
• Entertainment
• Personal care
• Subscriptions

Conclusion

Pick a tracking method that works for your lifestyle and stick with it. Consistency matters more than perfection.