Spending Trackers, Compared

Most people underestimate what they spend on small, frequent things, such as food delivery, subscriptions and coffee, and overestimate how much is left at the end of the month. Tracking spending for even two or three months usually corrects both. There are several ways to do it, and the best one is the one you will still be using in March.

When the budgeting app Mint shut down in early 2024, millions of users had to choose a new method, which is a useful reminder that no single tool is permanent. Whatever you use, keep a simple export or summary of your own.

Your bank's own app

How it works: many banks and card issuers now sort transactions into categories automatically and show monthly totals.

Good for: people with one main account and card who want a quick picture with no setup.

Limits: it only sees that bank's accounts, and the automatic categories are often wrong. A grocery store that also sells gas may land in the wrong bucket.

Aggregator apps

How it works: apps such as Monarch Money, Copilot and Empower connect to several banks, cards and investment accounts and combine them in one view. Most charge a subscription, though some offer basic versions without one.

Good for: households with accounts at several institutions, and anyone who wants net worth and spending in one place.

Limits: bank connections sometimes break and need to be reconnected, and you are sharing account data with another company, so read its privacy policy and use two-factor sign-in.

Zero-based budgeting apps

How it works: YNAB (You Need a Budget) and similar tools ask you to assign every dollar you have to a job before you spend it, rather than reviewing spending after the fact.

Good for: people who want to change their habits, not just observe them, and who are willing to spend a few minutes several times a week.

Limits: there is a learning curve, and the method only works if you keep it up.

A spreadsheet

How it works: download transactions from your bank as a CSV file once a month and sort them into your own categories, or type in totals by hand.

Good for: people who like control, want no subscription and prefer not to link accounts to anything.

Limits: it takes the most effort, and it is easy to fall behind.

The envelope method

How it works: decide how much you will spend on flexible categories such as groceries or eating out, and withdraw that amount in cash or move it to a separate account or prepaid card. When it is gone, it is gone.

Good for: the one or two categories that keep going over.

Making any method stick

Keep the categories few, perhaps eight to ten, so sorting is quick. Review once a week rather than daily. Look first for recurring charges you have forgotten, since cancelling a single unused subscription saves money every month without any further effort. And give it a full three months before judging, because one month rarely shows the irregular costs, such as car repairs, gifts and annual renewals, that throw budgets off.