12 reasons why a spending diary will change your life

Picture of a diary with coins, a fiver and receipts for my post on 12 ways a spending diary will change your life

More photogenic than a spreadsheet

My number one tip for managing your money?

Keep a spending diary.

If money is super tight, or you’re just not sure where you cash disappears – write it all down.

Every quick coffee, sandwich, magazine, tiny treat, pester present or donation. Big bills, small purchases – bung it down.

Seriously, a spending diary can change your life when it comes to money management.

Now I’ve kept a spending diary at different times – on my year out, as a student, then over the last few years, when we’ve been living on less after moving to the country.

Previous post: 10 tips for keeping a spending diary

In theory, a spending diary should only take a few minutes a day. Daily updates keep it manageable and there’s less chance of forgetting small cash purchases.

But then real life intervenes.

In practice, some weeks I’ll update very frequently. Some weeks I’m rushed off my feet, get behind and end up spending ages ploughing through piles of receipts and bank statements. Personally, I use an Excel spreadsheet, because I love Excel (sad but true). It makes it easy to add and delete lines and tot up totals. It’s not perfect, because I always mean to categorise expenses and never get round to it.

But I still find it worthwhile, and here are 12 reasons why I find my spending diary so useful:

Shows where I’m spending

If you’ve ever wondered where all the money from the cash machine went, or why your bank balance isn’t bigger at the end of the month – a spending diary will help. It shines a light on the black hole of forgotten spending. You can see how all the small purchases add up. Knowledge is power, people.

Inspires changes

There’s nothing like adding another sandwich meal deal to remind me I need to make more packed lunches! Once I see my spending in black and white, it forces me think about how to spend less.

Stops some spending

Just knowing I’ll need to record something on my spending diary can make me hesitate at the till. Do I really need a magazine? Do I want to confess my chocolate habit to Excel? Reminds me of the Nigella quote about why she lost weight after she broke her leg – she didn’t mind asking people to get her a big slice of cake, but was embarrassed to ask them to fetch a second or third piece.

Encourages me to cut down after high-spend months

I’ve got my spending diary set up so I can see total spending each month. It’s easy to see if spending suddenly spiked – so I can resolve to cut back a bit the next month. June was a prime example of a  month when seeing a higher total encouraged me to spend less.

Previous post on cutting our credit card bill  

Keeps track of our interest earnings

I have a whole load of current accounts, trying to earn extra interest on our emergency savings (See more on where to stash your emergency cash).

Filling in my spending diary reminds me to transfer interest payments to our main current account. My TSB current account for example only pays interest if I use online banking every so often, so it’s worth doing. Adding a lower interest payment, if a rate has been cut, will also prompt me to look for a better account or consider investing instead.

Encourages me to switch suppliers

I also note down monthly payments for household bills, so it’s easier to see if say the phone bill is higher than normal or a company has chosen to whack up our direct debit. I can then investigate why, and check comparison sites for better deals elsewhere.

Prompts me to cancel subscriptions

I check bank and credit card statements against my spending diary. This helps pick up extra purchases I forgot to record at the time, like internet shopping without a paper receipt. It also means I spot subscriptions, and query if we genuinely need or want them. We recently zapped Apple Music and WeightWatchers subscriptions, because they just weren’t worth the money to us.

Reminds me to chase invoices

Ah, the joys of freelancing, chasing payment for work done.

I have an income page, where I add a line every time I send out an invoice. When the money actually appears in my account, I add the payment in the income column, and the date paid. Seeing blank spaces in the income column reminds me to chase companies who haven’t paid up. I also refer to my spending diary when filling in my tax return, tracking down allowable expenses to set against my income.

Helps organise household admin

Past spending diaries are a mine of information. Is it time for the boiler to be serviced? When did the chimney sweep last come? How much did the gas safety certificate cost last year? What should I budget for a car service? How much higher is the insurance renewal quote than last year? My spending diary helps me track when and how much I should allow for less frequent tasks and once-a-year expenses. It’s super easy to search my spreadsheets, so I can check what needs doing when and negotiate on the cost.

Makes up for senior moments

If you’re feeling forgetful, a spending diary can help plug the gaps. I can look back to see yes, I did buy a birthday present and look I even paid for the stamps to post it. My spending diary can solve arguments about when we saw Star Wars, or which child spent their pocket money.

Tracks voucher savings

Believe it or not, I make a note where we spend less – a column that captures for example the 10% off code, free delivery or value of the tickets bought with vouchers. In itself, each saving might not be worth much. But tracking the small savings means I can see the big difference they make together.

Shocks me out of spending on auto-pilot

Why bother with a spending diary, when there are apps that will do it all for me, and categorise my spending? Precisely because apps make it too easy. Looking at big totals for categories like groceries, travel and eating out lets me gloss over the individual purchases, and that’s the level that needs to change. Sometimes apps put stuff in the wrong categories, making it easier for me to think – “no, surely that total isn’t so high, I’m sure it’s fine really”.

In contrast, writing it all down makes me think about each time I’ve spent something. So I’ll keep plugging away with my spreadsheets while it helps us make the most of our money!


Now – over to you. What do you think of spending diaries? Do you keep one? Useful tool or waste of time? Do say in the comments, I’d love to hear!

Pin for later:

Pinterest sized image of a diary, coins, fiver and receipts for my post about 12 reasons why a spending diary will change your life

Leave a Reply

Your email address will not be published. Required fields are marked *


  1. Jean Scholefield
    8th November 2018 / 6:45 pm

    Yes I’ve always kept spending diaries because it is so easy to loose track of small amounts but they all add up to large amounts. I can see exactly where I can save money. As you say it makes you think twice before you spend when it is written down in black and white.

    • Faith
      9th November 2018 / 7:22 am

      Glad you’ve found spending diaries useful too. Small purchases can seem insignificant, but they can have a powerful impact!

    • Dave allen
      28th November 2023 / 3:08 pm

      Highly Recommended!

      Very insightful, i will also say this here. Investment is one of the best ways to achieve financial freedom. For a beginner there are so many challenges you face. It’s hard to know how to get started. Trading on the Cryptocurrency market has really been a life changer for me. I almost gave up on crypto at some point not until saw a recommendation on Elon musk successfully success story and I got a proficient trader/broker Mr Bernie Doran , he gave me all the information required to succeed in trading. I made more profit than I could ever imagine. I’m not here to converse much but to share my testimony; I have made total returns of 3.6BTC from an investment of just 0.6BTC. Thanks to Mr Bernie I’m really grateful,I have been able to make a great returns trading with his signals and strategies .I urge anyone interested in INVESTMENT to take bold step in investing in the Cryptocurrency Market, you can reach him on WhatsApp : +1(424) 285-0682 or his Gmail : BERNIEDORANSIGNALS(@)GMAIL(.)COM, bitcoin is taking over the world, tell him I referred you

  2. 8th November 2018 / 8:05 pm

    You’re not old enough for senior moments Faith! Love this bit!

    • Faith
      9th November 2018 / 7:21 am

      Ha! My kids reckon I grew up with dinosaurs.

  3. Grainne
    9th November 2018 / 4:22 pm

    Great post! I need to start doing this, I have way too many senior moments, which is worrying at 33!

    • Faith
      10th November 2018 / 8:05 am

      Thanks Grainne! I do think spending diaries can really help, so hope you give it a whirl. Would love to hear how you get on.

  4. 15th December 2018 / 6:51 am

    Great stuff. I also think that when you write what you spend – similar to how it is wise to pay in currency rather than just swiping the card – you get this feeling about the money incoming and outgoing. Makes you a bit more responsible in the long-term.

    An guess what – I even got a fancy Christmas-themed diary last day to help me for the 2019 spendings… Excted!

  5. Manuel Franco
    1st December 2023 / 9:15 am

    I just want to say Thank You to everyone who supported me through the years. My name is Manuel Franco, New Berlin, Wisconsin. My story of how I won the Powerball lottery of $768.4M is a bit of a tale. I have been playing Powerball tickets for 6 years now since I turned 18. I bought my first ticket on my 18 birthday. I was feeling very lucky that day because I had contacted Dr. Odunga Michael to help me with the winning Powerball numbers. I really had that great great feeling that I looked at the camera wanting to wink at it. I only did a tiny part of it and trusted him. He gave me the numbers after I played a couple other tickets along with it for $10. I checked my ticket after the winnings came online and saw the numbers were correct including the Power play. I screamed for about 10 minutes because it felt like a dream. I had won $768.4M. You can check my winning testimony with the lottery officials just with my name search. Thank you Dr Odunga. Well, his email is odungaspelltemple@gmail.com and you can also call or Whats-app him at +2348167159012 so you guys can contact him

  6. Yanira Alvarez
    23rd May 2024 / 3:59 pm

    Real spell casters are hard to find but I am happy to thank Lord Krish for helping me win the lottery successfully after trying so many spell casters and I found my happiness in Lord Krish. I was given the lottery numbers by him which made me the third highest lottery winner in history and this is all thanks to you sir. Winning the lottery is something everyone would like to feel especially with a trustworthy spell caster. I, Yanira Alvarez, won the Powerball lottery in Los Angeles and I really thank Lord Krish because after I contacted him, he told me to only provide the spiritual items for him to do it for me and I didn’t hesitate to give him what he required so I could win it. I have tried so many spell casters who seemed real but only Lord Krish numbers gave me the winnings. I won the Powerball Jackpot of $1.08 billion and I am here today to share my experience to those willing to win the lottery as well. Take this opportunity to contact Lord Krish Spiritual with his email: lordkrishshrine@gmail.com and also share your experience with others.

The contents of this blog are for information and ideas, and should not be viewed as financial advice. Use of the material is conditional on there being no liability for how you choose to use it. If you are unsure about any investments or financial issues, please contact a financial adviser.