The benefits of keeping a diary of your daily spending

Words: Elizabeth Bennett

With the current cost-of-living crisis reaching far and wide, finances are at the forefront of many people’s minds. And while it’s impossible to do much about a problem that’s largely global, establishing a sense of control over your spending can be beneficial for overall wellbeing, especially at times when finances are stretched. Keeping a money diary is one way to do this. It’s particularly useful for people who have several accounts and different credit and debit cards, which can make it tricky to work out what’s being spent when and where, but everyone can benefit from keeping track of their spending. It builds awareness, helps to ensure that inessential outgoings are in alignment with personal values and makes it easier to work towards financial goals.

What’s it all about?

‘A money diary is a personal record of your daily spending habits, including all your expenses and income,’ says financial advisor and founder of The Money Confidence Academy, Lesley Thomas. ‘It’s usually kept in a journal or spreadsheet and can be used to track your finances, identify areas where you are overspending and create a budget.’ The diary typically includes information such as the date, description of the expense, the amount spent and the method of payment. ‘You might want to include any additional notes or details about the transaction that could be helpful to you later, such as the reason for the expense or income, or any feelings or emotions you had about the transaction – this is a great way to identify the motivation behind the purchase,’ adds Lesley.