A Monthly Spending Review to Find Money That Leaks Away
Why should you “close the books” on your money once a month?
When your paycheck stays the same but your account keeps running dry, the cause is usually small, recurring expenses. You remember a large payment going out all at once, but weekly leaks of 5,000 to 10,000 won rarely stick in your mind. That is why you need a monthly review session where you lay out the entire past month at once.
| Section | Key summary |
|---|---|
| Why should you “close the books” on your money once a month? | That is why you need a monthly review session where you lay out the entire past month at once |
| Five steps for a monthly spending review | Classify every expense into four groups: fixed costs, living expenses, leisure, and other |
| Example: Create a monthly review table | Short key point |
| How to avoid making the review a one-time exercise | Choose only one reduction goal at a time so you can build a sense of success |
| A spending review is not a time to scold yourself | Reviewing your spending can make you feel as if you have been caught doing something wrong |
Five steps for a monthly spending review
- Gather the past month’s card and bank account history on one screen, either from app statements or by downloading it into Excel.
- Classify every expense into four groups: fixed costs, living expenses, leisure, and other.
- Add up each group and calculate its share of income (%).
- Highlight three items that make you think, “Why is this here?”
- Choose one or two items to reduce next month and write the target amounts as numbers.
The three highlighted items are candidates for “leaking money.” Forgotten subscriptions, habitual delivery orders, and memberships you topped up but never used often reveal themselves here.
Example: Create a monthly review table
| Group | Last month’s amount | Share of income | Next month’s target |
|---|---|---|---|
| Fixed costs (rent, phone, insurance) | 950,000 won | 38% | Keep at 950,000 won |
| Living expenses (groceries, daily necessities) | 600,000 won | 24% | 550,000 won |
| Leisure (dining out, hobbies, shopping) | 550,000 won | 22% | 400,000 won |
| Other (unclassified, fees) | 150,000 won | 6% | 50,000 won |
In the example above, assuming income of 2,500,000 won, reducing leisure and other expenses by 250,000 won creates more room to save next month. What matters is not simply resolving to “spend less,” but clearly fixing the group to reduce and the target amount in concrete numbers.
How to avoid making the review a one-time exercise
- Set an alarm on the same date every month, such as the day after your card payment date, and make it a routine.
- If unclassified or other expenses exceed 10% of the total, it means you do not really know what you spent money on that month.
- Choose only one reduction goal at a time so you can build a sense of success.
A spending review is not a time to scold yourself
Reviewing your spending can make you feel as if you have been caught doing something wrong. But the purpose is not self-blame; it is to make next month’s choices easier. You do not need to match every receipt perfectly. Finding just three groups that grew noticeably compared with last month is enough.
Before trying to cut the items you found, first look at why they increased. Did delivery spending rise because it was a busy month? Did shopping increase because of stress? You need to know the reason for next month’s plan to be realistic.