Financial Literacy
Tracking Expenses – Logs & Leaks
Lesson
3
Why This Lesson Matters
Most people know roughly how much they earn, but very few know exactly where their money goes. Cash leaves in tiny steps—short eats, a quick tuk ride, an extra data reload—and by the end of the week you ask, “Where did it all go?” If you cannot see your spending, you cannot control it. This lesson gives you a simple system to see every rupee so you can keep the ones that matter and stop the ones that don’t.
Think of a water tank with small holes. The tank looks full in the morning, but by evening the level has dropped. You did not use the water for anything important; it just leaked away. Money behaves the same way. Seal the leaks and even a modest income can support your goals.
“Small leaks sink big ships.”
Step 1: See Where Your Money Really Goes
Start with a kind truth: you are not wasteful—you are unaware. Awareness begins with a clear picture. You will build that picture by recording every rupee you spend for a short period and then reviewing the pattern. When we measure, we learn. When we learn, we can choose differently.
A simple way to read spending is to sort it into needs, wants, and waste. Needs keep you alive or build your future: food staples, rent, medicine, travel to school or work, exam fees, essential tools. Wants are nice to have: treats, fashionable items, premium versions of the same thing. Waste is spending you regret or did not use: late fees, impulse buys, subscriptions you forgot to cancel, extra tuk rides when the bus was fine.
Look also for leaks—small, repeated spends that don’t feel big alone but add up across a month. A biscuit at LKR 60 three times a week is about LKR 720 a month. A daily LKR 150 tuk ride that could be a LKR 60 bus ride is roughly LKR 90 extra per day; over 20 days that is LKR 1,800. A LKR 200 soft drink four times a week is more than LKR 3,000 a month. None of these is “wrong,” but each is a choice. Seeing the numbers helps you choose on purpose.
Cash and digital spending both leak, just in different ways. Cash disappears silently if you don’t write it down. Digital payments leave a trail, but the total hides across different apps. Your system must capture everything—cash, card, mobile wallet, and the tiny coins in your pocket. One rule makes this work: write every spend the same day.
“What gets measured gets managed.”
Step 2: Build Your 7-Day Expense Diary
For one week, act like a detective. Your job is not to judge; your job is to notice. Choose one recording method you will actually use: a small notebook you carry, a single page on your wall, a notes app on your phone, or a simple spreadsheet. The best tool is the one you will open every time.
Create three columns and an optional tag: Date, Item, Amount (LKR), and Tag such as food, travel, data, school, health, home, gifts, or fun. Tags make review easier. Each time you spend, write it down immediately or as soon as you get home. If you forget once, add it later and keep going. Perfection is not the goal—consistency is.
At the end of each day, add any small spend you may have missed. Check your pockets, messages, and wallet. If a family member paid for something on your behalf, write it too. What matters is the full picture of how your household uses money for seven days.
When the week ends, total the amounts for each tag. Circle the three biggest totals that are not strict needs. These are your top three leaks. Pick one leak to reduce next week by half. You are not banning everything at once. Choose one smart cut you can keep. A small, steady cut beats a big, short effort.
Finally, connect your diary to your goals. Look at Lesson 1. If you cut one leak by LKR 1,500 a month and move it to your short-term goal, how many weeks will it take to reach the target? Seeing this link turns “I should save” into “I want to save.”
The Golden Rule
Record every rupee the same day—before you forget where it went.
Your Money, Untracked vs. Tracked
Untracked Spending | Tracked Spending |
Money disappears without a record | Every rupee has a written home |
You guess and feel stressed | You know and feel calm |
Impulse buys feel normal | Impulse buys stand out |
Goals feel far away | Goals feel reachable |
Exercises: Your Turn to See and Seal
Exercise 1 — Start Your 7-Day Diary. Pick your method and set it up now: notebook, wall sheet, phone note, or spreadsheet. Write today’s date and your first entry the next time you spend. If you are mid-day, start now—do not wait for a Monday.
Exercise 2 — End-of-Day Check. Each night, take two minutes. Read your list and add anything you missed. Tick the entries you confirmed with a message or receipt. Put a small star next to any spend you would not repeat if you had the choice again.
Exercise 3 — Weekly Review and Top Three Leaks. After seven days, total each tag. Choose the three biggest non-needs. Write them in order. For the biggest one, set a simple rule for next week—“Bus instead of tuk for two trips,” “Soft drinks only once a week,” or “Short eats only on Sundays.” Put that rule at the top of your diary for the new week.
Exercise 4 — Save the Difference. Move the money you did not spend because of your rule into your saving place the same day you skip the spend. If you said no to a LKR 200 drink, move LKR 200. If you walked instead of taking a LKR 150 tuk, move LKR 150. Saving is strongest when it is instant.
Exercise 5 — Link to Your Goal. Write one sentence: “My leak cut of LKR ___ per week will reach my goal of ___ in ___ weeks.” Keep this sentence at the top of your diary.
Quick Win
Today, record every spend and mark one you could skip tomorrow. Move that amount to your saving place by night.
Common Roadblocks (and Simple Fixes)
“I forget to write things down.” Tie the habit to something you already do. After you put your phone to charge at night, open your diary. Or set a daily reminder at a time you are free.
“I feel embarrassed to write my fun spends.” This diary is for you, not for judgment. Fun is part of life. The goal is not zero fun; the goal is planned fun.
“My family spends in different ways.” Begin with what you spend. Invite one person to try the idea for a week. When others see results—less stress, one fee paid on time—they often join.
“I tried before and quit.” Start again with a seven-day promise. After one week, choose to continue for one more week. Small wins, repeated, become a habit.
Keeping Yourself Motivated
Make the diary visual. Draw a simple seven-box grid and color a box each day you record 100% of your spends. Put a green dot for a leak you avoided and moved to savings. Seeing progress keeps you honest and proud.
Turn unavoidable spends into smarter spends. If travel is a must, plan routes to combine tasks. If data is costly, download using free Wi-Fi. If short eats are a weakness, pack one good snack from home.
You will notice a new feeling after a few weeks: calm. Calm comes from knowing where your money goes and seeing it move toward your goal.
“Money doesn’t disappear. It walks away in small steps.”
Your First Step is Complete
You now have a way to see your spending and seal the leaks that drain your progress. The 7-day diary is your training ground. Record the same day. Review weekly. Cut one leak at a time. Move the saved amount immediately. Tie the savings to a goal you care about. If you miss a day, fix it the next day and continue.
Start today. Write the date, record the next spend, and do your first end-of-day check tonight. In seven days, you will know your money better than most people ever do—and you will feel the difference in your mind and in your wallet.