How to Track Monthly Expenses in INR (A Simple Method for Indians)
Track your monthly spending in INR using a simple 3-step method. Categorise automatically, set realistic budgets for Indian cities, and see where your money actually goes.
Most people who start tracking expenses give up within two weeks. Not because it's hard — because they tried to categorise every ₹10 vada pav. Here's the method that actually sticks.
Step 1: Track for two weeks with just five categories
The mistake is starting with 25 categories. You'll spend more time picking a category than logging the expense. Start with: Food (all of it, out and in), Transport, Shopping, Bills, Other. That's it.
Step 2: Split the ones that hurt
After two weeks look at the totals. If Food is ₹18,000 and it's your biggest bucket, split it into Dining Out, Ordering, and Groceries. If Shopping is dominated by Amazon, split into Groceries, Household, and Personal.
The rule: only split a category once it's more than 15% of your monthly spend. Below that, splitting is just extra taps.
Step 3: Set realistic budgets, not aspirational ones
A budget you'll blow past every month is worse than no budget. Start with your last month's actual + 10% headroom, not the number you wish you'd spent. Tighten from there.
The trick: log at the moment of spending
Money you spend and then forget doesn't feel like money spent. Log it while you're paying — takes five seconds in a good tracker, versus 20 minutes of guesswork on Sunday night. Hisab Kitab installs as a PWA on your home screen so it's one tap from anywhere.
What to do after month one
- Look at your top 3 categories. Are they where you thought your money was going? Usually not.
- Pick one category to reduce by 20% next month. Set a budget with an amber alert at 70%.
- Automate savings on salary day — the money you don't see, you don't miss.
- Do this monthly. Not obsessively. 15 minutes on the 1st of every month.
Common questions
Should I track cash too?
Yes, but roughly. Withdraw a fixed amount for the week, log it as 'Cash - petty' when you draw it, and don't bother categorising each chai. If you find yourself withdrawing more, that's the signal.
What about UPI split with a friend?
Log the full bill in a group with your friend. Hisab Kitab tracks your share automatically without you doing paise-level maths.
Start with the free tier. Two weeks is all it takes to see the pattern.