The Essential Habit for Managing Your Money Well

Reading time 4 minutes

Published on 23/03/2026

What's the first step towards managing your money effectively? Knowing exactly how much you spend each month and what you spend it on. This helps you stay within your income, cut unnecessary costs, and save whenever possible. And with those savings you can deal with unexpected events - from a household repair or a toothache to more complex situations such as temporary work difficulties - and achieve your goals, like going on holiday or buying a home. It's worth knowing how much you spend and on what - but how do you do it? By adopting a small habit: checking your expenses regularly. In practice, you record what you spend and then take a moment to review it, asking yourself a few key questions. Here's how.

Recording your expenses

You can keep an expense log in a notebook, a dedicated app, or a spreadsheet such as Excel.

Write down the date, the amount spent, a short description (for example, "Pizza"), and the category (for example, "Eating out"). Categories group your expenses: you decide how detailed they should be. For example, you could use a broad category like "Leisure" or more specific ones such as "Eating out" "Cinema", and "Hobbies". The more specific your categories, the more precisely you'll understand your spending.

Choose how often to record your expenses. You might find it convenient to do so once a week on a set day, or once a month.

To avoid forgetting cash expenses, jot them down on paper or in a phone note as soon as you make them, or keep the receipt. For credit transfers, card payments and other electronic transactions, gather your expenses from account statements. Some apps automatically import expenses because they connect to your current account, but you'll still need to enter cash payments manually.

Analyzing your spending

At the end of the month, it's time to ask yourself a few questions. How much did you spend in total? And in each category? Did you spend more or less than you earned? Are there expenses you could eliminate, like a subscription you never use? Or the costs you could reduce, such as your phone plan if you switch provider? Do you feel you overspent in any category? Do you notice any patterns, like increased spending during stressful periods?

You can also look over your expenses at the end of each week to get a sense of how much you're spending and on what.

You might be wondering...

Isn't checking my bank statement enough? Or the app from my bank?

Both have limitations. They don't show cash spending or detail expenses made via credit cards. Bank statements also don't classify your expenses, while bank apps assign categories automatically, which may not reflect your needs.

Is it better to write expenses down or use a dedicated app?

It depends on your needs. Writing expenses in a notebook or spreadsheet encourages reflection and offers maximum privacy. Using a dedicated app is slightly easier and provides useful tools such as graphs. Bear in mind that some apps charge for advanced features.

Should I record even small expenses like a coffee at the bar?

Yes. Even small purchases can add up over time, and it's important to know how much they cost you. For example, buying a coffee at the bar almost every day can cost over €300 a year.

I forgot to record some expenses! What now?

It happens. It's certainly happened to us! To avoid forgetting an expense before recording it, try to note it down as soon as you can on paper or in a phone note, or keep the receipt.

Going one step further: saving goals

Now that you know how much you spend and on what, you can take the next step in good money management: setting savings goals. Do you need to replace your washing machine? Want to go on a trip? Or are you hoping to buy a home? You can set aside the amount you need gradually, saving each month when possible. To find out how, read our guide on planning.