Where does your money go? Simple ways to track your spending

Why track your money first?

The idea is to take ourselves off autopilot. It’s practically impossible to remember what we spend our money on every day, and it’s common to underestimate how much we shell out. That makes tracking important, because it shows us where our money’s really going.  

When you start, you’ll immediately be able to see if money’s flowing to places you didn’t realise or don’t want it to and use the information to help you create or review your budget, or supercharge your savings. 

Spending on snacks we don’t need, streaming bundles we barely use or shopping online spontaneously doesn’t feel like a big deal at the time, but the costs add up. Unless we actually write them down, it’s easy to feel as if our money just ‘disappears’.  

Instead when you track, then you budget, then you track again every month or three, you end up feeling much less stressed and way more sorted.

Money tracking tools to help 

There’s no official best way – the right method for you is the one you’ll stick to. Have a quick squizz at the main approaches:

Money tracking for couples and families

Surprise! You and your partner are doubling up on similar subscriptions but had no idea! That’s the kind of spending leak (read: opportunity) to save you might discover if you track your money together. It could be effective to track with a close friend or trusted whānau too. You might all be amazed by the leaks you discover if you’re brave enough to look.   

A few approaches that work: 

• Separate your personal and joint expenses. Track essential household costs together (think rent, power, groceries) but track your own discretionary spending separately. 
• Talk it through monthly. A short, low-pressure check-in (‘How did we get on this month?’) is more sustainable than trying to agree on everything you buy. Here are some other tips for having good chats about money. 

These days, many couples manage their money more separately. This has its pros and cons, but it’s important to know that a mix of separate and joint accounts can work, too.  

Separate accounts can be good for each person’s autonomy and independence. The key is to communicate well about your money, no matter how your accounts are held. While it’s only natural to have differences of opinion, getting on the same page brings many opportunities to get ahead financially that we wouldn’t have on our own. Here’s more info for successful tracking and planning with a partner.

Sound like you? 

Here are some common reasons people give for not starting or why they can’t be bothered with money tracking, plus how to get past them:

“I don’t have time.” 

Use an app that links to your bank and does most of the work for you. Or commit to manually tracking what you spend on two categories first – say food and travel. Once you’re in the habit, add others, like clothing and entertainment.  

“I forget to log my purchases.” 

Set a reminder on your phone for the end of each day, then swap a couple of the minutes you’d usually spend doomscrolling recording what you’ve spent that day instead. If you’re using a app to track card payments, you’ll only need to manually log the things you buy with cash. 

“I’m whakamā (shy) about my spending.” 

You’re doing this for you – and you can’t fix spending patterns if you can’t see them. No one else needs access to your numbers unless you choose to share them.  

“My spending varies a lot each month.” 

Great, track for longer! Most people need three months to get a sense of things, including those months where everything seems to go wrong and cost money at once. It’s all part of a bigger picture.

Next, make your plan (budget) 

Once you’ve tracked your money and know what you’re spending it on, you can use the information you’ve gathered to create a budget. Why not give our budget planner a go? 

It’s important to continue tracking your money even after you’ve created your budget. Keep checking your actual costs against your budget at least every three months. How did you do? Does your budget need some tweaks?  

Check to see how you’re going with your goals – can you find any other money to funnel towards them, perhaps a side hustle? 

“The budget tool is the best one I’ve found. It gave me a much better idea of where my money is going and helped me to see where I was spending the most.”  

– shared with Sorted 

Money tracking FAQs

What’s the difference between money tracking and budgeting? 

Tracking looks at what you’ve spent in the past; budgeting plans what you’ll spend in future. Tracking comes first – once you know your honest spending patterns, you can make a realistic budget. Skipping the tracking step often means your budget is based on guesses, and there’s little point in that. Then, after you’ve made your budget, tracking helps you check whether you’re following your plan.  

How can I stick to my budget? 

To build a great budget you can stick to, it helps to know your numbers. Too often we skip the step of looking at our spending and jump to starting a budget with unrealistic figures. The key is to capture everything you spend for three months to get your full spending picture. There are several apps designed to track spending on the go or you can download your past transactions from your bank, which really helps to see the patterns. 

How long should I track my spending before creating a budget? 

Even a week of tracking is better than nothing (or guessing), but aim for at least one month, ideally three. One month will let you see your regular spending, but three months shows more irregular expenses too. The more data you have, the more accurate your budget will be. 

Should I track every single purchase? 

Yep! Small purchases that add up can be eye-opening. You don’t have to stop buying things you want – but knowing the total cost helps you decide if they’re worth it. 

What’s the easiest way to track spending in New Zealand? 

If you pay mostly by card, your bank’s app is the easiest starting point – it automatically records your transactions and might also categorise them. If you want something more comprehensive, a dedicated app like Goodbudget or PocketSmith are great options. 

How do I track cash spending? 

Keep a small notebook or use your phone’s notes app to write down cash purchases as you go. You could download your bank statements to see what cash withdrawals you’ve made and see if it all adds up. Some tracking apps let you manually log cash transactions alongside your card spending. 

How do I start a budget? 

The first step is to add up your income – whatever money you have coming in. Next up are your outgoings, including regular and irregular expenses. To build your budget, it needs to be as accurate as possible and reflect the typical way you spend money.  

This makes it easy to see how your spending compares with what you earn. You'll either have a surplus (money left over) you can funnel towards what you want or a deficit (when you spend more than you bring in) you can address with free help from Sorted or MoneyTalks. To start your plan now, here’s our budget planner.