Record cash purchases right after you make them, because your bank only sees the withdrawal, not what the money was spent on. The main rule: record either each individual purchase or the whole withdrawal, but never both, otherwise the same amount gets counted twice.
Key points
The bank sees the withdrawal, not the purchases.
Each amount gets recorded only once.
Record it right away, while you still remember.
A forgotten expense is better than a gap in your records.
Why does cash fall through the cracks?
Your banking app will show "withdrawal $200" and that's it. It has no idea where that money went, to the market, on a taxi, or on a gift. A month later, your bank statement will just show one big mystery line.
The second reason lies in cash itself: it leaves no notification, no statement trail. You buy a coffee for $4 in cash, and an hour later you've already forgotten you paid at all.
Who sees what: cards, cash, transfers
Payment method | Bank sees | Budget sees |
|---|---|---|
This bank's card | Yes | If you record it |
Another bank's card | No | If you record it |
Cash | Only the withdrawal | If you record it |
Transfer to a friend for dinner | As a transfer | If you record it |
Budget doesn't connect to your bank, so it doesn't care how you paid. That's both an advantage and a responsibility: everything you log gets tracked, but only what you log.
If you pay with both a card and cash, your bank statement only shows part of the month. That's why it's so common to be surprised: the bank looks fine, yet somehow there's less money than expected. The difference almost always goes to cash, and you can only spot it if those expenses are recorded.
Withdrawal or each purchase: what should you record?
Step 1. Pick one method. If you rarely pay in cash and always know what for, record each purchase: "market $18", "taxi $12". If cash disappears in small amounts that are hard to track, log the whole withdrawal as a single expense, like "cash $200".
Step 2. Don't mix the two. If you recorded the withdrawal, don't also record the purchases made with that cash, and vice versa. Otherwise $200 turns into $400, and your budget will show overspending that never actually happened.
Step 3. Stick with the method for at least a month. That way you can compare months to each other.
How to record cash in Budget
Right after you make a purchase, send a message on Telegram or WhatsApp: "market $18". Hands full of bags? Send a voice message. Got a receipt? Take a photo of it. Budget will pick the category itself and show you how much of your budget is left.
If your cash runs out over the course of a day, you can send it all in one message in the evening: "market $18, taxi $12, coffee $4". If the category is wrong, reply to the bot's message with the correct one, like "groceries".
Frequently asked questions
What about cash left in your wallet at the end of the month?
If you're recording each purchase, nothing special happens: the leftover cash simply carries into next month and gets recorded when you spend it. If you logged the whole withdrawal, the leftover is already counted as spent. That's fine, just keep in mind that next month this money will be spent without a new entry.
How do you track cash on a trip abroad?
Record it in the currency you're paying with: "taxi €15" or "dinner €30". Budget will convert the amount into your budget's currency at that day's exchange rate and show both figures. That way you don't have to do the math in your head, and your report will show all trip expenses in one currency. More on this in our tip about tracking trip expenses.
Should you record small change and tips?
If it's a recurring expense, yes: weekly tips for a waiter or monthly parking change add up to a noticeable amount over time. A one-off coin here and there can be skipped. You don't need penny-perfect accuracy, just a budget balance that's close to reality. More on this in our tip about small expenses.
What if you forget what you spent cash on?
Record the amount anyway, even roughly, like "cash, don't remember $25". It'll land in "Other", but your budget balance will stay honest. A gap in your records is worse than a wrong category: it makes your budget show more money than you actually have. If you remember later, reply to the bot's message with the correct category.
Can you just switch to card only, to skip the hassle with cash?
Sure, if that's more convenient, but it won't make tracking automatic: the bank will only show transactions on its own card, while transfers and purchases from other cards stay invisible. That's why it's easier to have one consistent recording method for all expenses, no matter how you paid.
