Great work estimating your income yesterday! Today, we’ll move on to the next step in creating a sound budgeting foundation: estimating our expenses.
Estimating our expenses is an important step — we all need to know how much we actually spend so we can start planning what we want to spend. But we also need to make sure that what we’re budgeting for is less than the income we’re bringing in. (We’ll worry about that later, though.) For now, let’s focus on estimating. And remember, this is a guilt-free zone — you’re just collecting info right now. The point is to just notice your spending trends and say, “Oh, I see.”
Today’s Assignment
- Estimate your expenses. You’ll need to take a look at past spending in order to estimate successfully. Head to your online bank account and take a look at what you spent last month. If you have multiple bank accounts, be sure to check those too so you can get the fullest picture of your spending. (If you’re already using the Goodbudget app, check out your Spending by Envelope report.)
- Without categorizing individual transactions, how much did you spend in total last month? How much did you give last month? How much did you save? Note: Some of your spending might not be “typical.” Be sure to still include those expenses in the totals above. Transactions that are unusual will always happen, and we want to work towards making space for them in our budgets. The goal here is to just accept the numbers we see in front of us.
- When you looked at what you spent, what struck you? What are your initial thoughts as you look at the numbers? Did you spend more or less than you thought? Did anything surprise you? Share your reflections with us in the comments below!
Note for couples: You can look up your past spending separately or together; just make sure you both take a look at what you find. By the way, if you have kids spending family money, remember to pull that up too.
Happy budgeting,
-The Goodbudget Team
195 thoughts on “Take a Look Back”
O.M.G.!!!! Last month, I spent close to $1500 on groceries! I had no idea! I realize that costs are rising but that seems ridiculous to me for a family of 3 (myself and 2 sons). I have now separated my groceries and household maintenance costs. It’s tough because I think that there are some clothing costs in there as well. I also need to separate those moving forward. I shop a lot at Superstore so I am trying to be more aware of their points offerings and use those. I am trying to buy some organic foods but I may need to cut back. They’re just too pricey at times. Produce costs a lot and my sons eat a lot of fruit and I eat a lot of veggies. Any tips on cheap, local produce in the Lower Mainland of BC?
I noticed that I spent a lot on going out to eat and entertainment.
I notice I spend a lot on things we don’t need, such as makeup and McDonald’s and just the I wants, a few hundred I’m seeing.
I spend a lot on stuff I don’t need and spend more then I made.
I spend way too much on my dogs!! Changing their food! To save me $200 on their food.
Nothing really struck me when I looked at last month’s expenses. My expenses were very typical and they followed the pattern I have observed over the years. One concern though is that I keep spending slightly above my budget, particularly with regard to the variable monthly expenses.
I notice I spend a lot on grocery eating out and things I don’t need
I noticed I spent more than I earned and that is slowly becoming the trend. Very worrying
My trend tend to be impulse buying then saying I don’t need this or I don’t use it right away. Also over my income.
I spend a lot of money paying off debt and I think that’ll be the case for a couple of months. Less than 1/4 of my pay goes to bills, the rest outside of about 15%goest towards paying down debts. Its a cycle
I realize I have too many impulse buys…and my grocery bills are way higher than they should be. I need to reel it in when I get excited about things like buying games for my son’s birthday.
This left me with a bit of a tummy ache! I am spending way more than I make!!!. The only thing that saved me was some side work that I did and the idea behind that is not to survive but to save it. Ugghhhh. I spent so much eating out! It’s crazy. I didn’t categorize but at a glance I could see how many transactions are dining out! It’s crazy. I really need to get my finances together, this has been a cloud over my head, what seems like, most of my life.
I realize that I’m paying a lot of money on debt. I need to work on that.
We have over 30 paid subscriptions, had no idea. Other is just normal rent, utilities, etc.
I’m spending what I make and not saving anything. So much money that seems wasted over the past year due to impulse buys
I am definitely spending on too many wants and I do recognize I am the spender in the family. The budget will help me decrease spending frivolously.
I spent about what I thought but way to much getting food delivered. I had some unusually large expensive since I let myself get behind in my bills.
As someone who has struggled with impulse purchases and eating out, it’s a humbling and eye opening experience to see just how much I spent on eating out as well as small little purchases I justify to myself. Seeing first hand how much I’ve been spending on these things has opened my eyes. With a proper budget and some sacrifice and discipline, I can become much more intentional with my spending moving forward.
We definitely spend a bit more than we bring in. The credit card bill is more than we would like to pay and is way too easy to spend with.
We noticed we overspend on Christmas.
Amazing to see how much money I spent on nonsense, eating out or having food delivered. I love to cook and have Butcher Box delivered every six weeks. Why am I being so lazy and wasting money? Glad I’m getting back to using a budget.
I spent over 1,400 dollars on eating out, buying gifts, and 60 on gas. I spent probably 400 dollars on gifts, so I’m spending over 1,000 dollars on just eating out and misc. items. Too much money eating out and Door Dashing…
My problem is I am not saving or donating. I am helping my adult daughter some with living expenses and it is getting really difficult to save for the biannual expenses like car insurance, property tax, home owners insurance.
I spent way more than I thought.
ok does this mean, start with gross income and include taxes and retirement contributions and cost of health insurance, or, stat with just the net?
Entertainment is my second highest category. I need to find some free fun!
I spent more than I made after using my credit card to get heating oil and for a small car repair.
i looked at the past 6 months; holy cow
i am not giving as i had planned and feel super guilty
i am not saving at all except my 401k at work and feel super stupid
i am overspending in an undisciplined way, consistently and feel like a total jackass
alllll this has got to change!
I spend most of my income on mortgage, groceries, bills, auto upkeep and maintenance, and revolving debt payments. It all adds up!
I do spend a small amount on wants, but not over the top, in my opinion. I have a decent paying job, but not enough income to save as much as I feel I need to get ahead of the game.
Helping pay for my daughter’s wedding is top on the list and it will be for 2023 – Next up is Amazon – OMG – before clicking, if I really don’t “need” it, I’ve started to stay off Amazon. It is no longer a daily – what’s on special today – purchase.
I noticed I spent too much money on going out to eat instead of cooking at home. and shopping for the kids and grandkids instead of paying off the debt or saving. Shopping for unnecessary things need to stop until debt is paid and savings is growing. I will focus on needs and not wants until I am debt free
I thought I had more free spending money than I actually have!
I spend more than I have coming in. I buy extra because worried about not having money when goods are needed. This cause chaos.
I have enough money if I budget and not impulse shop.
I realized I spend more on wants, impulses, and eating out.
We spent a fortune on groceries, entertainment, and retail spending without having an idea what we were doing. I will be looking at it on a daily basis until we get caught up.