Category Review

 

Tutorial - Written Guide

Welcome to the Category Review tutorial! This guide will walk you through the features of the Category Review Tab in your budget template, showing you how to analyze your spending and make adjustments to achieve your financial goals.

Step 1: Select a Category

The first thing you'll do in the Category Review Tab is choose which type of category you want to review. You can select from:

  • Income
  • Expense
  • Debt
  • Investment

After selecting the category type, specify the account you want to review. For example, if you're reviewing entertainment, you'll see transactions related to that account.

Step 2: Choose Periods for Comparison

You can compare two periods to see how your spending has changed.

  • Select Period 1: This could be a specific month or an entire year.
  • Select Period 2: Choose a different period for comparison (this can also be a month or year).
  • Enter the year for each period.

Step 3: View Summary Cards

After selecting the periods, you'll see summary cards that provide a quick breakdown of your budget versus actual spending. The summary shows:

  • Budgeted amount: How much you planned to spend.
  • Actual amount: How much you really spent.
  • Over/Under: Whether you were over or under budget.

Step 4: Transaction Breakdown

Below the summary cards, you'll find the transaction breakdown for the selected account and periods. This shows all the transactions that contributed to the summary amounts. For example, if you're reviewing entertainment, you might see transactions like movie theater, HBO Max, Netflix, or Disney+.

  • You can sort the transactions by:
    • Amount
    • Alphabetical order
    • Date
  • You can also choose to sort in ascending or descending order.

Step 5: Analyze the Chart

The chart at the bottom of the tab provides a visual representation of your spending over time:

  • Pink line: Actual spending.
  • Purple line: Budgeted amount.
  • Gray dashed line: Your average spending.
  • Dots: Represent the periods you're comparing. The right dot corresponds to Period 2, and the chart shows the last 12 months of data from that point.

If the chart becomes too cluttered, you can turn off the budget or average lines, but they are helpful for spotting trends.

Step 6: Use the Chart for Insights

The Category Review Tab can help you identify:

  • Spending trends: Where are you spending more than expected?
  • Savings opportunities: Where have you successfully cut costs?
  • Errors: Unexpected spikes or dips in your spending that may require further investigation.

Example: Reviewing Your Spending

Let's say you're doing a monthly review and notice that you spent $200 on dining out, which is double your budget of $100. The chart might show a spike in your spending for dining out, signaling that it's time to cut back on weekly takeout or pizza orders.

You can also use the Expense Insights feature to find red flags or wins from the previous month. For example, dining out might have increased by $150 from the prior month, aligning with the concerns you've seen in the breakdown.

Example: Finding Wins

On the other hand, you may notice a big win with your utilities—let’s say your water bill went down by $60 and your gas bill dropped by $30. These changes might reflect seasonal shifts, such as warmer weather reducing your heating needs, or changes in behavior, like cutting down on long showers. Identifying these savings can help you adjust your future budgets accordingly.

Conclusion

The Category Review Tab provides powerful insights into your spending, helping you:

  • Spot trends that need attention.
  • Identify areas where you can save.
  • Discover possible errors in your spending patterns.

Use this tool to stay on top of your budget and make informed decisions about your financial goals. If you need a visual walkthrough, be sure to check out the Category Review Tutorial video.

I hope this guide helps you get the most out of your budget template! For more tips and tricks, check out the other tutorials in the series.

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