“Where does my money go?” It’s a question we’ve all asked ourselves at some point. You reach the end of the month, look at your account, and don’t understand how you spent so much.
The good news: finding out is easier than you think. And once you know, you can take control.
The 5-Minute Method
You don’t need to spend hours with spreadsheets. With this quick method, you’ll have a clear picture of your spending:
Step 1: Gather Your Data (1 minute)
Open your banking app and access last month’s transactions. Most banks let you see a summary by category.
Step 2: Identify the “Vampires” (2 minutes)
Look for these 3 types of expenses:
- Forgotten subscriptions: Spotify, Netflix, gym you never visit, apps you don’t use…
- Small daily expenses: Coffees, snacks, small purchases that add up more than you think
- Impulse purchases: Clothes, gadgets, things you bought “because it was on sale”
Step 3: Calculate the Totals (2 minutes)
Add up how much you spent in each main category:
- Housing (rent, mortgage)
- Transportation (gas, public transit, taxi)
- Food (groceries, restaurants)
- Entertainment (outings, streaming, hobbies)
- Other (clothes, technology, miscellaneous)
What You’ll Probably Discover
Most people are surprised to see:
- Eating out represents more than 15% of their salary
- Subscriptions add up to more than $50 per month
- Small daily expenses (coffees, snacks) can add up to $100-200 monthly
- Small untracked purchases add up to hundreds of dollars
How much is normal to spend per category?
There’s no magic number, but these benchmarks (as a share of your take-home pay) help you spot at a glance whether any category is getting out of hand:
| Category | Rough benchmark |
|---|---|
| Housing (rent/mortgage + utilities) | 30–35% |
| Food (groceries + eating out) | 10–15% |
| Transport | 10–15% |
| Leisure, subscriptions and treats | 5–10% |
| Savings | 20% (target) |
These are just guidelines: in expensive cities housing balloons and you have to adjust the rest. For a simple framework to split your income, use the 50/30/20 rule or work out your split instantly with the 50/30/20 calculator.
Why Small Daily Expenses Are So Dangerous
A $3 coffee a day doesn’t seem like much. But:
- $3 x 22 work days = $66/month
- $66 x 12 months = $792/year
That daily coffee costs you half an iPhone per year. I’m not saying don’t have it, but knowing how much it costs lets you decide if it’s worth it.
The Next Step: Track Your Expenses
Once you have the initial picture, the trick is to maintain control. And that means tracking your expenses consistently.
💡 If you want to start the manual way without building from scratch, grab our free monthly budget Google Sheet — pre-built categories, expense log, and annual overview, all in one file.
The Hard Way (That Nobody Keeps Up)
Writing down every expense in an Excel sheet or notebook. Works for a week, then you abandon it.
The Easy Way (That Actually Works)
Use an app that lets you:
- Scan receipts: Photo and done, no typing
- Categorize automatically: The app knows that Whole Foods is groceries
- See visual summaries: Charts that show where your money goes
- Budget alerts: Warns you before you go over, not after
How to Set a Realistic Budget
Now that you know what you spend on, you can set limits. For a complete guide, read our budgeting for beginners post. The 50/30/20 rule is a good starting point:
- 50% Needs: Rent, bills, transportation, basic food
- 30% Wants: Entertainment, restaurants, clothes, hobbies
- 20% Savings: Emergency fund, investments, future goals
If you’re not reaching 20% savings right now, that’s okay. Start where you are and improve little by little.
3 Actions to Start Today
- Cancel a subscription you don’t use
- Set a weekly limit for entertainment expenses
- Install an app that helps you track expenses effortlessly
How Lurio Helps You
With Lurio you can:
- Scan receipts with your phone: AI extracts the amount and categorizes it
- Set budgets by category with alerts
- See charts of where your money goes each month
- Project your savings based on real income and expenses
And if you ever need to split expenses with someone (partner, roommates, trip), you already have everything in the same app.
Conclusion
Knowing where you spend your money is the first step to controlling it. With 5 minutes and the right method, you can go from “I don’t know where my money goes” to “I control every dollar.”
Ready to start? Create your free Lurio account and discover exactly what you spend on.
