Checklist for Reviewing Yearly Spending Trends

Want to take control of your finances? Start by reviewing your yearly spending habits. Here's how you can do it step-by-step:

1. Collect Your Financial Records: Download 12 months of transaction data from all your accounts (checking, savings, credit cards, investments) and consolidate them into one place.
2. Categorize Your Expenses: Sort spending into clear categories like housing, food, transportation, and entertainment. Keep it consistent and separate fixed costs (rent) from variable ones (dining out).
3. Spot Patterns and Changes: Look for unusual expenses, recurring charges, and seasonal trends. Compare this year’s spending to the previous year to identify shifts.
4. Review and Adjust Spending: Separate essential expenses from optional ones. Trim unnecessary costs like unused subscriptions or impulse purchases.
5. Set Financial Goals: Use the money you save to build an emergency fund, pay off debt, or invest in your future. Automate savings to stay consistent.
6. Use Digital Tools: Simplify tracking with apps that automatically categorize transactions, generate reports, and send spending alerts.

Why does this matter? Reviewing your spending helps you cut waste, plan for the future, and reduce financial stress. With just a few steps, you’ll gain confidence in managing your money and make smarter decisions for long-term success.

Step 1: Collect and Organize Your Financial Records

To get a clear picture of your finances for the year, start by gathering all your financial records in one place. This will set the stage for an accurate and thorough review.

Download Your Transaction History

Begin by downloading transaction records for every account you’ve used over the past year. This includes your checking and savings accounts, credit cards, and any investment accounts where you made deposits, withdrawals, or purchases.

Most banks and credit card companies offer options like "Export to CSV" or "Download Statements" in their online dashboards or mobile apps. Make sure to download 12 months of data, from January 1st to December 31st, to cover your full year of activity. Don’t skip any accounts, even those you rarely use, as small or infrequent transactions can add up over time.

Once you’ve downloaded the files, you’ll need to bring everything together for a complete view of your finances.

Combine Data from All Your Accounts

Now that you have individual records, it’s time to consolidate them into one place. This step is crucial for creating a unified and detailed overview of your financial activity.

If you want to streamline the process, tools like Maybe Finance can connect to over 10,000 financial institutions and automatically pull all your transaction data into a single platform. This eliminates the need for manual work and reduces the chance of missing anything important.

Prefer a hands-on approach? Create a master spreadsheet with columns for date, description, amount, account, and category. Copy and paste data from each file into your spreadsheet, ensuring the format is consistent. Pay close attention to date formats, as some banks use MM/DD/YYYY while others may differ. Standardizing this ensures everything aligns correctly.

Once your data is compiled, the next step is to double-check for accuracy.

Check That Your Data Is Complete

After consolidating your records, it’s essential to verify their completeness. Missing transactions or incomplete data could throw off your analysis.

Start by cross-referencing your digital records with physical receipts, especially for cash purchases that might not appear in your statements. If you notice any months with unusually low activity, dig deeper to ensure no transactions were overlooked.

Take a closer look at large or unexpected transactions to confirm they’re legitimate and accurately categorized. To stay organized, set up a simple filing system for supporting documents. Scanning receipts and saving them with clear, consistent names (e.g., "2024-03-15_Grocery_$62.50.pdf") can save you time later if questions arise.

With your data complete and organized, you’ll have the foundation you need for better financial insights and smarter budgeting.

Step 2: Sort Your Expenses into Categories

Organizing your expenses into clear categories can turn a pile of raw data into meaningful insights, helping you make smarter budgeting choices.

"Budget categories are the meal logging of personal finance. A budget category will help you figure out where you are overspending and give you the awareness to make positive changes in your spending." - Rob Bertman, CFA, CSLP®, CFP®

By categorizing your spending, you can identify trends and distinguish between essential and non-essential expenses.

Create Consistent Spending Categories

Start by creating a short list of essential categories and expand as needed. Begin with broader categories like housing, food, transportation, health, personal development, clothing, technology, and financial fees. You can always refine these later to add more detail.

It’s also helpful to separate your expenses into fixed (like rent or insurance) and variable (like groceries or entertainment) categories. This way, you can easily spot the areas where you have more control over your spending.

For example, you might group all food-related expenses under “groceries” and “dining out.” If you want more granularity, you can break these down further. The key is to find a level of detail that’s practical and aligns with your financial goals.

If you’re using tools like Maybe Finance, their AI can automatically sort your transactions across multiple currencies and accounts, saving you time and improving accuracy.

The most important thing is consistency. Once you’ve set your categories, stick to them throughout the year. This consistency allows you to track spending patterns across different months and seasons.

Now, let’s address those tricky expenses that don’t fit neatly into your categories.

Handle Unclear or Miscellaneous Expenses

Not every transaction will fit perfectly into a predefined category. These "wildcard" expenses require a bit of extra care to keep your financial analysis accurate.

"Miscellaneous expenses are financial wildcards, covering anything from ad-hoc office supplies to unanticipated maintenance work." - Ali Mercieca, Finance Writer and Editor, Ramp

It’s a good idea to create a miscellaneous category in your budget, but use it sparingly. This category is best reserved for one-time, irregular expenses that don’t warrant their own classification. However, if you notice your miscellaneous expenses creeping above 3-5% of your total spending, it’s time to dig deeper.

When you come across unclear charges, take a moment to verify them. Check receipts, bank statements, or even contact the merchant if needed. For instance, a $47.99 charge from "ABC Services LLC" could be a forgotten subscription or an overlooked purchase that needs proper labeling.

If you notice recurring expenses that don’t fit your existing categories, create new ones. For example, if you regularly spend on professional development courses, it might make sense to add a "Career Growth" category instead of lumping these into miscellaneous.

Set clear rules for what qualifies as miscellaneous. Irregular, one-time costs like emergency repairs or unexpected gifts belong here. However, regular purchases - no matter how small - should have their own dedicated categories.

Step 3: Look for Patterns and Changes in Your Spending

Once you've categorized your expenses, it’s time to dig deeper and identify spending patterns. This step helps highlight hidden trends, unexpected costs, and irregularities that might otherwise go unnoticed.

"Most of the time, if you ask someone, they can rattle off the big expenses pretty quickly." - Michelle Brownstein, CFP, Empower Expert

While it's easy to list major expenses like rent or car payments, the real challenge lies in spotting subtle shifts and unplanned expenses that could throw off your financial plans.

Find Unusual or Large Expenses

Start by scanning your expense categories for anything that seems out of the ordinary. Large or unexpected costs can skew your overall spending and need closer examination.

For example, if your dining-out expenses suddenly double in a month, figure out why. Was it a vacation? A special celebration? Or just a change in your routine? Identifying the "why" can help you decide if adjustments are needed.

Keep an eye out for charges you don’t immediately recognize. Setting aside time for regular "money check-ins" can help you catch these anomalies early. Use tools like your bank’s spending reports or expense trackers to make this process easier.

Also, review recurring bills and subscriptions. If you spot an unexpected increase - like a higher utility or cable bill - it might be due to an error or a fee adjustment. Investigating these changes can save you money in the long run.

Compare This Year to Previous Years

Looking at year-over-year spending trends can provide valuable insights into how your financial habits are evolving. Gather statements from the past 12 months and compare them to the previous year.

Focus on your biggest spending categories first. For instance, if housing costs have risen, it could be due to higher rent, increased utility bills, or home maintenance expenses.

Pay attention to both percentage changes and dollar amounts. A small dollar increase might represent a significant percentage jump, signaling a bigger impact on your budget than it initially seems.

Transportation costs are another area to watch. Factors like fluctuating gas prices, unexpected car repairs, or changes in commuting patterns can cause noticeable shifts. Use last year’s spending as a guide to adjust your budget as needed.

Don’t forget to factor in income changes. A slight increase in spending might be reasonable if your income has grown proportionally. After analyzing yearly totals, dig into monthly and seasonal trends for a more complete picture.

Track Seasonal and Regular Expenses

Some expenses naturally fluctuate throughout the year, so it’s essential to account for these seasonal patterns. For instance, December often sees a spike in spending due to holiday-related costs like gifts, travel, and entertainment.

Annual expenses - such as insurance premiums, property taxes, or membership renewals - can also skew your monthly budget. Tracking these irregular costs separately can help you better understand your baseline spending.

Subscriptions and memberships may also follow seasonal trends. For example, you might use streaming services more in the winter or see increased gym activity in the new year. Recognizing these patterns allows you to plan ahead and adjust your spending accordingly.

Step 4: Review Your Spending Choices and Make Changes

Now that you’ve got a clear view of your spending habits, it’s time to take actionable steps to refine your budget and decide where your money should go.

Separate Necessary Expenses from Optional Ones

Start by sorting your expenses into two categories: essential and discretionary. Essentials include things you absolutely need, like housing, utilities, and groceries. On the other hand, discretionary expenses - think dining out, streaming subscriptions, gym memberships, hobbies, travel, and premium upgrades - are areas where you have more flexibility.

For each expense, ask yourself:

• Is this absolutely necessary?
• Would cutting it affect my health or safety?
• Can I delay or reduce this expense?

Some items might fall into a gray area, like a gym membership that benefits your health but isn’t strictly required. If money is tight, consider more affordable alternatives, like home workouts or local community centers. Once you’ve separated the two, focus on trimming your discretionary spending.

Find Ways to Cut Optional Spending

The goal here isn’t to sacrifice your quality of life - it’s about being intentional with your money so you can achieve your financial goals.

• Cancel unused subscriptions. Many households subscribe to multiple streaming services but only use a few. If you haven’t used a subscription in three months, it’s time to cut it.

• Change your grocery habits. Opt for generic brands, which can save you 20–30% on your food bill. Check out weekly sales and plan meals around discounted items.

  "You can cut your grocery budget back just by shopping the weekly sales at your local grocery store... Rather than buying what you want to eat, try to focus on what's on sale and meal plan around those items. This will result in you spending less on groceries." - Julie Ramhold, Consumer Analyst with DealNews.com

• Pause before buying. Before purchasing non-essential items, wait 24 hours. This gives you time to decide if it’s a need or just an impulse.

• Try a monthly spending cleanse. Pick one discretionary category, like takeout or entertainment, and commit to not spending in that area for a month. Save the money you would’ve spent in a separate account.

  "Then every time you would normally do that activity, move the money not spent into that separate bank account... For 30 days you can go without an item and bank the extra money. Over the course of the year, the typical person saves an extra $1,200 to $1,500 a year." - Jessica Weaver, CFP, CDFA, CFS, and author of Confessions of a Money Queen

• Explore free or low-cost entertainment. Instead of eating out, host a potluck dinner. Look for free community events or enjoy outdoor activities.

• Tackle credit card interest. If you’re carrying a balance, prioritize paying it off. Credit card interest can add up quickly, costing you hundreds of dollars over time.

  "Unfortunately, many consumers carry balances on their credit cards from month-to-month, and this could result in hundreds of dollars in interest payments over time, which is lost money consumers could save, or spend on something important to them." - Rod Griffin, Senior Director of Public Education and Advocacy for Experian

Use Your Savings for Financial Goals

The money you save from cutting back doesn’t just sit there - it should be directed toward your financial priorities.

• Automate your savings. Set up automatic transfers to a savings account so you’re not tempted to spend the extra cash.

  "One of the most effective strategies is to pay yourself first. Before covering any other expenses, set aside money for savings and investments to ensure your future financial security." - Daniel Milks, founder of Woodmark Wealth Management

• Focus on your priorities. Start by building an emergency fund if you don’t already have one. Then, tackle high-interest debt. Once those are handled, put your savings toward long-term goals like retirement or major purchases.

• Leverage cash-back credit cards. If you’re disciplined with credit card use, cash-back rewards can stretch your budget further.

  "Cash-back credit cards are a great way to get rewarded for everyday spending you're already doing... You can use the cash back you earn on purchases you're already making to bolster your discretionary spending budget." - Mary Hines Droesch, Head of Consumer and Small Business Products at Bank of America

• Start small and stay consistent. Even if it’s just a small amount, treat saving like any other monthly expense. Over time, aim to save up to 20% of your income.

  "Time is your biggest advantage when it comes to long-term financial planning. The earlier you start saving for retirement, the less financial stress you'll face later." - Noah Damsky, founder of Marina Wealth Advisors

Progress is more important than perfection. As Noah Damsky puts it:

"The most important step is to start. You can always refine your goals, but having a plan and keeping it in motion is what truly matters." - Noah Damsky

Check in on your progress monthly and adjust as needed. By combining these strategies with digital tools to track your savings, you’ll be well on your way to building a stronger financial future.

Step 5: Use Digital Tools to Track Your Money

Once you’ve identified areas to cut back on and started redirecting those savings, the next step is keeping that momentum going throughout the year. Digital tools can make managing your finances much easier by automating repetitive tasks and giving you real-time insights into your spending habits.

Set Up Automatic Expense Tracking

Tracking expenses manually can be a hassle - and let’s face it, mistakes are bound to happen. That’s where technology steps in to save time and ensure accuracy.

Expense tracking platforms can automatically pull in transactions from your bank accounts, credit cards, and other financial institutions. For instance, Maybe Finance connects to over 10,000 institutions, automatically categorizing transactions. It even uses AI that learns from your adjustments, improving accuracy over time. This means every purchase gets logged without the guesswork.

To get started, link all your relevant accounts to your chosen platform. Once connected, transactions will flow seamlessly into the system, where they’re sorted into categories you’ve set up. Make it part of your routine to review these categorizations weekly, making tweaks as needed. With everything organized, you can dive deeper by generating custom reports to analyze your spending patterns.

Create Custom Reports to Understand Your Spending

Raw data from your transactions shows what you’ve spent, but custom reports can help you dig into the why and when. These insights make it easier to spot trends and see the bigger picture.

Platforms like Maybe Finance let you create personalized reports and charts that break down spending by category, time frame, or other filters. You can compare monthly expenses, track seasonal trends, or see how specific costs shift over time. For example, you might find that your grocery bill spikes during certain months or notice a steady increase in subscription costs.

Here are a few useful report views to consider:

• Monthly trends: Spot periods of higher or lower spending.
• Category breakdowns: See which areas are eating up most of your budget.
• Year-over-year comparisons: Track whether costs in specific categories are rising or falling.

The goal here isn’t just to see where your money is going - it’s to uncover patterns that can help you adjust your habits. With these insights, you can take a proactive approach by setting alerts and limits to keep your spending in check.

Create Spending Alerts and Budget Limits

Even with the best planning, overspending can sneak up on you. That’s why setting up spending alerts and budget limits is so important - it helps catch potential issues before they spiral out of control.

The key is to use a mix of both. For categories where you can allow some flexibility, spending alerts work well. For essential areas tied to your financial goals, stricter budget limits are more effective.

While many banking apps now offer basic budgeting features, dedicated platforms often go a step further. Maybe Finance, for example, provides customizable alerts and budget controls that take into account your entire financial picture. Because it tracks all your accounts in one place, the alerts it sends are based on your overall situation, not just one account.

Make it a habit to review and adjust these alerts as your income or priorities shift. Your budget limits should challenge you to stay disciplined, but they shouldn’t be so restrictive that you feel tempted to give up.

Conclusion: Take Charge of Your Financial Future

Taking control of your financial future starts with understanding your spending habits. By following these five steps, you’ll lay the groundwork for making smarter financial decisions.

Here’s a striking fact: only 39% of Americans have a budget. Yet, among those with a financial plan, 96% feel confident about achieving their goals, and 76% feel more in control of their money. Regularly reviewing your yearly spending can help you join the group of people actively shaping their financial future.

"Creating a plan that's flexible and then consistently reviewing it can allow you to both stay on track and make adjustments as needed."

– Jordan Patrick, CFP at Commas

Technology can make this process easier. Tools like Maybe Finance automatically track transactions from over 10,000 institutions, provide AI-driven insights, and generate custom reports to keep you on top of your finances. These features make it simpler to stay proactive, as outlined in the earlier steps.

But it’s not just about the tools - it’s about setting goals and being adaptable. Financial planning isn’t static. As your spending patterns shift, your approach should evolve too.

"The most important step is to start. You can always refine your goals, but having a plan and keeping it in motion is what truly matters."

– Noah Damsky, founder of Marina Wealth Advisors

Think about the bigger picture. With the average household carrying over $104,000 in debt and just over half of adults having enough savings to cover three months of expenses, building this habit is more than just a routine - it’s a step toward long-term financial security.

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