How to Create a Spending Journal to Take Control of Your Money
We journal our thoughts, our meals, our goals and sometimes even our workouts. But how often do we actually write down what we're spending?
A spending journal is one of the simplest ways to get a clearer picture of where your money is going. And you don't need a fancy budgeting app or complicated spreadsheet to get started. All you really need is a notebook, a pen and a few minutes each day.
The goal isn't to make you feel guilty about every coffee or takeout order. It's simply about becoming more aware of your spending habits. Once you can see where your money is going, you can start making more intentional decisions about where you'd like it to go instead.
Here’s how to create and keep a spending journal that can actually help you spend smarter and save more.
1. Choose a simple journal
You don't need anything fancy to get started. In fact, I'd recommend keeping it really simple.
Grab a notebook, spiral-bound journal or even a small notepad you already have at home. There's no reason to spend a lot of money on a spending journal when the whole point is to help you save money!
Choose something that's easy to carry with you and give it a title such as “My Spending Journal” or “Where Does My Money Go?” The important thing is that you'll actually use it.
2. Decide how you want to organize it
There are several ways you can set up your spending journal, so choose whatever feels easiest for you.
You could:
- Use one page for each day.
- Divide the journal into weeks.
- Create separate sections for income, bills and everyday spending.
- Keep a running list of every purchase.
- Use a simple table with columns for the date, item, amount and category.
Don't overthink this part. The best system is the one that makes it easy for you to record your spending consistently. If you're new to the idea, I'd start with a new page for each day. You can always change your system later.
3. Write down every dollar you spend
This is the most important part of keeping a spending journal: record everything.
That means the big expenses and the little ones. Write down your:
- Groceries
- Coffee and takeout
- Gas
- Household purchases
- Clothing
- Entertainment
- Online shopping
- Subscriptions
- Bills
- Miscellaneous purchases
Those small purchases are especially important. A $5 purchase might not seem significant on its own, but several small purchases throughout the week can add up quickly.
The goal isn't perfection. It's awareness.
(You may also want to record income or money coming into your account so you can get a more complete picture of your finances.)
4. Separate needs from wants
Once you're recording your purchases, try adding a simple category to each expense.
For example:
Needs:
Groceries, utilities, transportation, medication, housing and other necessary expenses.
Wants:
Takeout, entertainment, impulse purchases, unnecessary clothing purchases and other things you could live without.
You can use different coloured pens if you enjoy that, but you certainly don't have to. A simple N for need and W for want works just as well.
This can be incredibly eye-opening.
You might discover that you're spending far more on convenience purchases than you realized. Or that some of the things you thought were “needs” are actually wants. There's no judgment involved. You're just collecting information.
5. Review your spending at the end of each week
This is where your spending journal really starts to become useful.
Once a week, take a few minutes to look back at what you've written down. Ask yourself:
- What did I spend the most money on?
- Were there any purchases I regretted?
- Did I make any impulse purchases?
- How much did I spend on convenience?
- Are there expenses I could reduce next week?
- Did I spend money on things I already had at home?
- Were there any purchases I could have planned for better?
You may start noticing patterns that are difficult to see when you're simply tapping your debit or credit card and moving on with your day.
6. Track the money you save, too
Here's a fun addition I'd make to your spending journal: keep track of your wins!
Create a small section for money you've saved. This could include:
- Coupons or discounts you used
- Sale prices
- Cash-back rewards
- Money you transferred into savings
- Items you chose not to buy
- Bills or expenses you successfully reduced
Don't underestimate the value of recording the things you didn't spend money on.
If you planned to spend $50 but found a way to spend $35 instead, that's a $15 win. Write it down!
Watching those savings add up can be surprisingly motivating.
7. Keep your spending journal somewhere convenient
Keep it somewhere you'll remember to use it. That might be in your purse, beside your computer, on your desk or in another spot you visit every day.
You can also use a notes app on your phone if that's more convenient for you. The point isn't to use a particular type of journal. The point is to create a habit of paying attention to your spending.
Try recording purchases as soon as possible. Waiting until the end of the day makes it much easier to forget those little purchases.
8. Use what you learn to make better decisions
After you've kept your spending journal for a few weeks, you should have a much clearer picture of your habits.
Now comes the fun part: do something with that information.
Maybe you discover you're spending $40 a week at the coffee shop. Perhaps you're making small purchases online often. Or maybe you realize that grocery trips are becoming expensive because you're stopping at the store several times a week.
You don't have to overhaul your entire budget overnight. Choose one or two areas where you think you could make a change and start there.
The purpose of a spending journal isn't to make you feel bad about spending money. It's to help you become more intentional about it.
Give a Spending Journal a Try
You don't need a complicated budgeting system to start paying closer attention to your money.
A notebook and a few minutes a day can be enough to show spending patterns you might not have noticed otherwise. Once you know where your money is going, you can make more informed decisions about where you'd rather have it go.
Try keeping a spending journal for the next 30 days and see what you discover. You might be surprised by what you learn. You will probably find a few easy opportunities to spend less along the way.
Have you ever kept a spending journal? What did it teach you about your spending habits?
