With so many resources available, many people rely on budgeting apps and software to manage their finances. While I’ve personally recommended all sorts of personal finance apps for your budgeting needs, I have a confession. My favorite budgeting tool isn’t the latest AI-powered app. Instead, my go-to hack for keeping tabs on my spending will always be good old pen and paper. And I’m not the only one doing it. Here’s how “old school” pen and paper budgeting has its advantages if you want to keep a close eye on your spending.

As we’ve discussed before, and as you’ve probably noticed yourself, touching money and giving it away hurts your brain. So if you need a mental nudge to stick to your budget, the physical presence of a pen and paper is far more powerful than checking your online bank account. I think of it as a kind of friction that apps just don’t provide. If anything, spreadsheets can be overwhelming and quickly discouraging; pen and paper is a way to take a small, manageable step toward getting your spending under control. Let’s look at some actionable steps to get started with manual budgeting.

The most important question to answer: Where is my money going? Don’t settle for estimates here. Look your spending habits in the eye. Gather recent bank and credit card statements, bills, your last pay stub, and any other documents that outline your income and expenses. This will give you a complete picture of your finances.

List your regular sources of income and amounts, such as your after-tax salary, child support payments received, and income from other jobs or investments. Add up the income.