Why track household expenses
With UPI, cards and wallets, money leaves in many small amounts and it is easy to lose track. A simple record of every rupee in and out – grouped into a few categories – shows where the money actually goes, which spends can be trimmed and how much is really left to save or invest each month. Most people are surprised by the first full month.
Needs, wants and savings: the 50/30/20 guide
Each category belongs to a group. Needs are essentials such as rent or home-loan EMI, groceries, utilities, school fees, transport and insurance. Wants are lifestyle spends such as eating out, shopping, OTT and holidays. Savings & investments are SIPs, PPF, NPS and your emergency fund. A common starting point is about 50% of take-home pay on needs, 30% on wants and at least 20% saved. The Monthly Budget and Year Summary show your actual split and savings rate, so you can see how close you are.
Accounts, UPI, cards and transfers
List your bank accounts, UPI wallet, cash and credit cards with their opening balances (a credit card balance you owe is negative). Every transaction names the account it came from. Moving money between your own accounts – an ATM withdrawal, a wallet top-up or paying the credit card bill – is a transfer, not an expense, so a card purchase is counted once, on the day you swipe. The Balances sheet shows what each account should hold, and you can match it with your statements to catch missing entries.
Making the budget work
Set budgets from three months of actual spending rather than guesses, and review them every month. Fixed costs – rent, EMIs, fees, SIPs – are easy; the savings usually come from variable spends such as ordering in and online shopping. Pay yourself first: start SIPs and PPF on salary day so saving isn't left to whatever remains at month end. Keep an emergency fund of about six months of essential expenses before taking on new goals.
Free vs Pro
The free edition has the full budget, transactions, monthly and yearly reports and balances. The Pro edition adds savings goals with the monthly amount needed, a bills and EMIs checklist that marks itself paid, and a net worth statement.
Written by Prakash Bagchi, finance professional and founder of PB Lab. Last reviewed .