Ask most people where last month's salary went and you'll get a shrug and "transfers, mostly." The answer is already sitting in your bank and fintech apps. You don't need a new budgeting app or a week of effort. You need one export, one spreadsheet or notebook page, and about 30 minutes.
This guide walks you through a one-time review of the last month or two of spending. By the end you'll know your real numbers, which you can then use for any budget style you choose.
Why statements beat memory
Memory forgets the small things: the ₦500 transfer to a POS agent, the airtime top-up you did four times, the "just this once" food delivery. Those are exactly the items that add up. Your statement records every one of them with a date and amount.
A statement also exposes things you didn't do. Repeated small debits you don't recognise could be a subscription you forgot or something worse. If you see a debit you can't explain, contact your bank through its official channel straight away. Our post on bank insider fraud and guarding your account covers what to do next.
Step 1: Gather your statements (5 minutes)
List every place money enters or leaves. For most Nigerian, Ghanaian and Kenyan readers that means:
- Your main salary or business bank account.
- Any second bank account used for savings or transfers.
- Fintech wallets or accounts (Opay, Moniepoint, Kuda, PalmPay and similar in Nigeria; M-Pesa in Kenya; MoMo in Ghana).
- Your dollar or domiciliary account, if you have one.
- Cash. This one has no statement, so we'll handle it separately.
Pick a period. One full calendar month is the minimum; two is better because it catches bills that don't come monthly. Most banks and wallets let you view or download a statement inside the app or via internet banking. The exact menu names and any fee for official stamped statements differ by provider, so check yours. For this exercise you only need the plain in-app view or PDF, not a stamped copy.
Step 2: Set up a simple sheet (5 minutes)
Open a spreadsheet (Google Sheets works fine on a phone) or draw a table in a notebook. Use these columns: Date, Description, Amount, Money in or out, Category.
If your statement can be downloaded as a CSV or Excel file, copy the rows in. If you only have a PDF, don't retype everything. Instead, scroll the statement and enter totals by category as you go (see Step 4).
A privacy note: keep your statements in your own files. Don't upload them to random "expense analyser" websites, send them to strangers, or paste them into tools you haven't checked. A statement shows your name, account number and who you pay.
Step 3: Choose 8 to 10 categories only (3 minutes)
Too many categories is why people quit. Start with these and rename them to suit you:
| Category | What goes in it |
|---|---|
| Housing | Rent, service charge, landlord levies, repairs |
| Power and utilities | Electricity tokens, fuel for generator, water, gas |
| Data and airtime | Mobile data, airtime, cable or Wi-Fi |
| Food at home | Market, supermarket, provisions |
| Eating out and delivery | Restaurants, street food, delivery apps |
| Transport | Fuel, ride-hailing, bus fares, bike rides |
| Family support | Money to parents, siblings, relatives, church or mosque giving |
| Savings and debt | Transfers to savings, investments, loan repayments |
| Bank charges | Transfer fees, SMS alerts, card maintenance, stamp duty |
| Everything else | Clothes, entertainment, one-offs |
Family support deserves its own line. In many households it is a major, regular expense, and hiding it inside "other" makes your budget dishonest. Giving it a number lets you plan for it rather than feel ambushed by it.
Step 4: Tag every transaction (10 minutes)
Go line by line and write a category beside each. Move fast and don't agonise. Some tips that save time:
- Sort by description or amount. Repeated names (same shop, same agent, same utility vendor) can be tagged in a batch.
- Use a filter or a search. In Sheets, search "airtime" or "data" and tag all matches together.
- Handle transfers to people by purpose. A transfer to "Chinedu Okafor" tells you nothing. Ask yourself what it was for: food, family, a debt, a business purchase. If you truly can't remember, put it in "Everything else" and move on.
- Tag ATM and POS cash withdrawals as "Cash". We'll sort that out in Step 5.
- Don't count moving your own money. Transfers between your own accounts or into your own wallet aren't spending. Mark them "Own transfer" and exclude them, or you'll double count.
Step 5: Deal with cash (2 minutes)
Cash withdrawals are a black hole in any statement. Add up the month's total withdrawals, including POS cash-outs. Then estimate honestly what that cash covered, such as market, transport, small bills. A rough split is fine at this stage. If you can't split it, label it "Cash, unknown" and treat it as a flag: for the next month, jot down cash spending in your phone notes for just one week to see the pattern.
Step 6: Add it up and read the result (5 minutes)
Sum each category. Then compute each as a share of your total income for the month. Look for three things:
- Fixed costs (housing, power, debt, school fees): the amounts you can't skip this month.
- Flexible costs (food out, data, entertainment): where you have room to change.
- Leaks: bank charges, unused subscriptions, repeated small transfers, and unexplained cash.
A hypothetical worked example
Say Amaka, a salaried marketing officer, takes home ₦300,000 a month. These numbers are made up for illustration. After tagging a month of statements from her bank account and one fintech wallet, she gets:
| Category | Amount (₦) | Share of income |
|---|---|---|
| Housing (monthly share of rent) | 75,000 | 25% |
| Power and utilities | 18,000 | 6% |
| Data and airtime | 22,000 | 7% |
| Food at home | 55,000 | 18% |
| Eating out and delivery | 34,000 | 11% |
| Transport | 30,000 | 10% |
| Family support | 30,000 | 10% |
| Savings and debt | 10,000 | 3% |
| Bank charges | 4,500 | 1.5% |
| Everything else | 21,500 | 7.5% |
| Total | 300,000 | 100% |
What Amaka learns: eating out and delivery cost more than her savings and debt payments combined, three times over. Bank charges look small but equal almost half of what she saves. And data at ₦22,000 may be worth a look; our guide on phone settings that drain your data can help.
She decides on one change: cut eating out by ₦14,000 and move that to savings, taking savings from ₦10,000 to ₦24,000. She doesn't need a dramatic overhaul. One visible leak fixed is enough for month one.
Common mistakes
- Counting your own transfers as spending. Moving ₦50,000 from your bank to your wallet and then spending it counts the money twice.
- Ignoring the small stuff. Fees, airtime and "small chops" transfers seem trivial one at a time. Totals often surprise people.
- Reviewing only a good month. Include a month with school fees, a festive period or a family emergency if you can, so your picture isn't too optimistic.
- Forgetting irregular bills. Annual levies, insurance, and school fees don't show every month. Put them in a sinking fund; see how to save for rent, school fees and December.
- Judging yourself. The aim is information. If the numbers sting, that's normal. Pick one change, not five.
Adapting this to your situation
Irregular income: use total income over the two months, then divide by two for an average. Treat the lowest month as your planning number.
Dollar or other foreign income: keep a separate sheet for the dollar account, or convert each item at the rate you actually received or paid. Don't mix currencies in one total without converting.
Shared household money: if a spouse or partner pays some bills directly, add those in as notes so the picture of household costs is complete.
Kenya, Ghana and South Africa: the method is identical. M-Pesa and mobile money statements can usually be requested in-app or via the provider's code or portal; check yours for the steps. South African banks typically offer downloadable statements in their apps.
What to do with the numbers
Once you know your real spending, choose a budget method that fits it. Our comparison of budget types shows which suits a fixed salary, a variable income or a household with many dependants. Then repeat this 30-minute review once a quarter. After the first time, it takes about 15 minutes because your categories and rules are already set.
Frequently asked questions
Do I need a budgeting app?
No. A spreadsheet or notebook is enough for this exercise. Apps can help later, but check what permissions they ask for and never share your PIN, password or OTP with any app or person.
What if my statement is a PDF and I can't copy it?
Skip row-by-row entry. Scroll through and keep running totals per category in a notebook, ticking each line as you go. It takes a little longer but works.
How far back should I look?
Start with one month if you're short on time. Two to three months gives a more honest picture, especially if you have irregular bills.
What if I spot a debit I don't recognise?
Note the date, amount and description. Contact your bank or wallet provider through the official app, website or number printed on your card, not through numbers sent in messages or social media. Ask about reversal and block the card or channel if needed.
How often should I redo this?
Quarterly is enough for most people. Do it sooner after a pay rise, a job change, a move or a new loan.
Your next step
Set a 30-minute timer today, open the statement of your main account and tag just the last 30 days. Write down the one category that surprised you most. That's the number to work on first.
This article is for general information only and is not financial, legal, or tax advice. Prices, rates and rules change quickly, so check current details before making money decisions.