Expense tracking is the process of monitoring and recording all financial expenditures over a specific period. This practice helps individuals and businesses understand where their money is going, enabling better budgeting and financial planning. By keeping a detailed account of expenses, users can identify spending patterns and areas where they can cut costs. Many tools and apps are available for expense tracking, making it easier to categorize and analyze spending. Regularly reviewing these records can lead to improved financial health, as it encourages mindful spending and helps in setting realistic financial goals.