How To Unlock Crucial Information About Your Spending On Wallet

How To Unlock Crucial Information About Your Spending On Wallet

(This is the second part of the guide on how to make the most out of charts and reports on Wallet. Click here to read the first part.)

The basic rule of personal finance is to earn more than you can spend. Each of us are trying to achieve various combinations of this formula in our lives. Either we try to earn more or try to spend less.

Whichever of this is the case, we need to know information about our spending habits to make important decisions. And, that’s where Wallet’s Spending charts come in handy!

Spending Trends

Most often, you may want to dig deeper than the expenses pie-chart. For instance, in Jen’s case, although she got some information about her expenses from the income and expenses charts and reports, she can get a complete showdown of her real spending by looking at the Spending by Categories chart on Wallet.

As the name suggests, the chart shows a breakdown of her spending in her preferred time period by categories, arranged in descending order of money spent. Tapping on each category also reveals all the records in it. So she can quickly spot the categories she spent on the most in a particular period.

Comparing the charts for September and October, Jen can see that in the former, she had spent a lot on eating out, shopping and gifts. Her excuse was that she was celebrating her birthday! In October, she has, however, shifted gears and got back to her grove and has spent much less on eating out and nothing on shopping and gifts.

So even if her expense charts were to scare her with her sudden increase in spending in September, these spending by categories gives her a clear picture of where exactly her money went. This will also help Jen quickly see whether she’s within her prescribed limits of spending in each category as well. She could use the spending by labels chart to see the same information but by the custom labels she had created.

Cumulative Expenses

To dig further more and get an even bigger picture of your finances, you can use the cumulative expenses and expenses comparison charts. The cumulative expenses tells you your total successive expenses for a given period in relation to your total income.

By looking at Jen’s cumulative expenses for a year, she can see that her expenses have steadily increased during the last few months, but has stayed well below her total income.

Jen can also check out how she did with her expenses in comparison with previous periods and put things in better perspective. For instance, from our previous discussions we know that Jen spent an awful lot of money in her birthday month, September. But one look at the expenses comparison chart of September puts things in perspective and shows that her cumulative expenses are still lower than that in August. And, looking at the chart of October, it becomes further clear that Jen’s spending habits took a turn for the good and has reduced drastically.

Balancing things out

The last chart that can give you a lot of information about your finances is the Balance Trend chart. It plots your balance through time and shows you the crests and troughs in your balance over time.

As you can see in Jen’s balance trend, although her balance fluctuated a lot between the months of April to September, it is now in good shape and much higher than her starting point. Even in her monthly charts, comparing her average and maximum balance over time, we can see that she is now in a good, steady state with her finances. Way to go, Jen!

Analyse this!

Charts and reports on Wallet give you so much such information without you having to move even a finger. Just track your finances manually, connect your account to Wallet or import your transaction history to Wallet.

Ready to unearth some crucial secrets about your finances?

Start living a richer life today!

Jan Muller
Founder of BudgetBakers

How To Find The Biggest Leakages In Your Finances Through Wallet