Dear readers, though it may sound like a cliché, how quickly time flies! We are already approaching the close of 2026, and it is once again that time of the year when I take stock of the past twelve months.
While it may seem somewhat old-fashioned in today’s IT and AI-driven world, I have maintained a simple Excel spreadsheet for decades to record my daily expenditures. No fancy apps, no sophisticated budgeting tools – just a spreadsheet that I update regularly.
Over the past few days, as the year draws to a close, I have been going through my monthly expenditure records and reviewing where my money has gone.
You might wonder: What is the point of keeping such detailed records? Isn’t it a rather tedious exercise?
Well, beyond the obvious benefit of knowing where my money goes, I have found three less obvious but meaningful benefits.
1. It is surprisingly therapeutic.
Going through my expenditure records gives me an opportunity to reflect on the little things in life. I see the purchases I have made for myself and my family, the meals we have enjoyed, and the things we have bought along the way.
Rather than simply looking at the dollars and cents, it reminds me that I have been fortunate enough to have the financial means to provide for myself and my loved ones.
In a way, it is also an exercise in gratitude. Sometimes, we get so caught up in earning, spending and accumulating wealth that we forget to appreciate what we already have.
2. It helps identify unnecessary spending and encourages better financial discipline.
Life can get hectic, and it is surprisingly easy to lose track of our daily spending.
A cup of kopi gao here, a quick snack there, an occasional online purchase – individually, these expenses may seem insignificant. But when accumulated over weeks and months, they can add up to a surprisingly substantial amount.
Keeping track of my expenditure helps me identify these spending habits and distinguish between genuine needs and discretionary wants.
A little adjustment here and there could free up money for more meaningful purposes, whether it is savings, investments, family activities or simply building a stronger financial cushion.
A fun fact: I even keep track of my expenditure on Singapore Pools! After losing some money on my World Cup 2026 bets, I have been consciously scaling back. Perhaps seeing those numbers in black and white is a more effective reminder than simply telling myself to exercise restraint!
3. It provides a useful starting point for planning next year’s budget.
Reviewing this year’s expenditure gives me a realistic reference point for planning the year ahead.
Rather than drawing up an arbitrary budget, I can look at actual spending patterns, identify areas where expenses may increase, and decide where adjustments should be made.
There will always be unavoidable expenses, but there are also areas where we can exercise greater control.
More importantly, having a budget gives us a clearer idea of how much we can set aside for savings and investments, instead of merely hoping that there will be money left at the end of each month.
A simple habit, but one worth cultivating
We often associate financial planning with investing in stocks, buying property, managing our CPF or building a retirement portfolio.
But perhaps we should not overlook something much more fundamental: understanding how we spend our money.
You do not need sophisticated software or expensive financial planning tools to get started. A simple Excel spreadsheet, a notebook or even a budgeting app will do.
My encouragement to readers is this: Start tracking your daily expenditures, if you have not already done so.
You may be surprised by what you discover. More importantly, you may develop a greater appreciation of what you have, become more conscious of where your money goes, and make better financial decisions in the year ahead.
After all, good financial management is not just about how much money we earn or how well we invest. It is also about how consciously we spend what we have.