Review Your Spending: A Simple Way to Take Control of Your Money

How do I review my spending?

1. Information gathering

Gather all your information by pulling together the last 2–3 months of bank statements, credit card statements, utility bills, and any cash spending you can recall. You may want to go back further than this, especially if you have annual expenses that need to be accounted for, such as car and home insurance or other big-ticket purchases. It’s important to have the full picture to ensure nothing is missed.

2. List everything you spend

Document this either as a physical list or electronically. Spreadsheets are particularly useful, as they allow you to easily update and make changes. Several useful online tools can help you track and manage your spending. These range from budgeting apps to simple trackers, and some can even link directly to your bank accounts, allowing you to categorise transactions automatically. Below is a selection of some of the most well-known in the UK. Not all of these require a paid subscription to use all features, so weigh up if this is worth the investment before purchasing.

• YNAB (You Need A Budget)
  A budgeting tool based on assigning every pound a job. It’s great for helping you plan ahead and proactively manage your money, not just track it.

• Emma
  A budgeting tool based on assigning every pound a job. It’s great for helping you plan ahead and proactively manage your money, not just track it.

• Snoop
  A financial insights app that connects to your accounts and highlights spending trends, potential savings, and subscriptions you might want to keep an eye on.

• Digital banks
  Several UK digital native banks, such as Monzo and Starling, offer a feature built-in spending dashboards that automatically categorise transactions, show trends, and help you set budgets.
  

3. Categorise your spending

Group each expense into clear categories so you have a better idea of where your money is going. This is where you will start to see patterns and identify where the majority of your money is being spent.

Typical examples include:

• Housing (rent/mortgage, utilities)

• Food (groceries, eating out, takeaways)

• Transport

• Subscriptions & memberships

• Shopping

• Leisure & entertainment

• Savings & investments

4. Spot ‘red flags’

By following the steps above, you may begin to spot red flags or “leaks” where your money is going which may be unexpected. This is the time to ask yourself the following questions:

• What surprised me?

• What’s higher than I expected?

• Was the purchase worth it?
  

Many people find that small, regular costs (subscriptions, coffees, impulse buys) are often the biggest culprits.

5. Separate needs and wants

It’s not about cutting back on everything or removing all of life’s luxuries, but you do need to be honest with yourself and prioritise what is a ‘need’ versus a ‘want’.

Needs are essentials and are things you cannot avoid, such as your mortgage, utility bills, food, and transport costs. However, even here, there may be areas where you could reduce spending. For example, you may have a new car on finance or be spending a significant amount on food that could be curbed by downgrading to a cheaper motor or shopping more smartly. Your needs and wants will be individual to you, and there will likely be areas where you can make adjustments. It is not about cutting back on everything.

6. Check alignment with your goals

This is the time for reflection and revisiting your goals to make sure your spending is being prioritised accordingly. Examples of questions to ask yourself include:

• Does your spending reflect what actually matters to you?

• Are you prioritising short-term comfort over long-term goals?

• Could small changes free up money for savings, debt reduction, or future plans?
  

Note the word “goals”, not just financial goals. It’s important to recognise that not all goals are money-oriented. For example, you may be investing in a new skill or hobby, which needs to be prioritised in order to achieve it, even if this involves a financial cost.

7. Decide if changes are needed (keep it realistic)

Are there subscriptions that can be cancelled or downgraded? Could you curb your weekly spending limit? Could you reduce one problem category? This doesn’t mean doing a complete overhaul of everything at once or putting unnecessary pressure on yourself. The aim is to make intentionally manageable adjustments that you can realistically maintain. Start by asking yourself simple questions such as: 

• Are there subscriptions that can be cancelled or downgraded? 

• Could you curb your weekly spending limit without it feeling restrictive? 

• Is there one problem category where spending could be reduced slightly without impacting your quality of life?

Focusing on one or two areas at a time can make changes far more achievable. Small, consistent tweaks often have the biggest impact over time, whereas extreme cutbacks are difficult to sustain and can quickly feel overwhelming. The goal is progress, not perfection, and building changes that fit around your lifestyle rather than work against it.

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Turning Insight into Action

To explore this further, our recent blog “5 Habits to Reset Your Finances” should be read alongside this guide. While this blog focuses on the practical steps of reviewing your spending, the habits blog looks more closely at the behaviours and mindset that sit behind your financial decisions. Reading the two together can help you not only understand where your money is going, but also build sustainable habits that support calmer, more intentional money choices over time.

Disclaimers: 

Approver Quilter Financial Services Limited April 2026.
The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.