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Using your credit card company or bank’s site to calculate your run rate requires minimal effort. The institution does most of the work for you, if you know where to look.

Plus, many banks and credit card companies are upping their game when it comes to giving consumers tools to track their money. Many will let you tabulate the amount you’re spending overall and by category. If you’re just jumping onto your credit card company’s site to pay your monthly bill, you might be missing out on an opportunity to learn more about your spending patterns.

If you log in to Citibank, a popular bank and issuer of credit cards, you’ll see a Spend Summary option. Click it and the screen shown in Figure 2-1 appears. You see the amounts you’re spending in specific categories, such as restaurants or entertainment. For most categories, you can drill down and get additional detail. You also see the total amount you spent. Most banks offer similar features.

FIGURE 2-1: Like most banks and credit card companies, Citibank tracks your spending.

But you’re not done. Remember that you have other expenses that may not be picked up by the credit card issuer’s site. For instance, if your checking account is elsewhere, checks you write for property tax or insurance aren't included. Remember to include these additional expenses.

When looking at each of your expenses, picture where the expense fits in the major categories. Is it overhead or discretionary?

Some people hold their savings and credit cards at the same bank. If so, you can get summary spending information from the bank’s site. Others keep their checking and savings accounts and credit cards with different financial institutions. If that sounds like you, you’ll need to consult the online resources of both your bank and credit card company.

If you’re going this route to track your run rate, make your life easier by using only one credit card. Remember, if you pay off your credit card in full each month (which you should), you’re essentially getting a free monthly loan. Also, you get a more accurate and complete picture of your run rate.