Before you can even set a budget, you have to know what you’re spending your money on. It can feel tedious and even be a bit of a painful process as you realize that you might not be as disciplined with your money as you’d like, but coming to terms with reality, despite your feelings, is really important for getting control over your money. Here are some ways to get started.

1. Choose a Method

• Notebook/Paper: Write down every expense as it happens. It’s simple and virtually free, but requires discipline.

• Spreadsheet (Excel/Google Sheets): Flexible, customizable, and easy to total up. This is best to do on a personal computer.

• Apps (like Quicken’s You Need A Budget, Mint, Pocketguard, Goodbudget, etc.): Automated, some sync with banks, but may feel “too much” if you want simple. Many also cost a monthly fee.

2. Categories to Track

• Fixed Expenses: Rent or mortgage, utilities, car payments, insurance, taxes.

• Variable Expenses: Groceries, gas, entertainment, dining out.

• Sinking Funds: Savings for big purchases, holidays, gifts, charitable donations.

• Debt Payments: Credit cards, loans.

3. Daily Habit

• Write or enter purchases at the end of each day.

• Review totals weekly.

• At the end of the month, check for patterns. Where did most of your money go?