# Understanding Your Spending Categories: A Complete Guide

Learn how to use spending categories effectively to identify where your money goes and find opportunities to save more each month.

## The Power of Categorization

When transactions are just a long list of merchant names and amounts, it's impossible to see the big picture. Categories transform chaos into clarity.

### Default Categories in Disha One

Our AI automatically assigns transactions to these categories:

• **Shopping**: Retail stores, online shopping, department stores  
• **Dining**: Restaurants, cafes, food delivery  
• **Groceries**: Supermarkets, specialty food stores  
• **Transportation**: Gas stations, public transit, rideshare  
• **Entertainment**: Movies, streaming, events, games  
• **Travel**: Airlines, hotels, car rentals  
• **Utilities**: Electric, water, internet, phone  
• **Healthcare**: Pharmacies, doctors, hospitals  
• **Subscriptions**: Recurring digital services

### Reading Your Category Breakdown

The Insights page shows your spending as a pie chart and bar graph. Here's how to interpret it:

1. **Percentage view**: See what portion of total spending goes to each category  
2. **Dollar amounts**: Understand the actual impact on your wallet  
3. **Month-over-month trends**: Identify if spending is increasing or decreasing

### Finding Savings Opportunities

Look for categories that consume more than expected. Common culprits:

• **Dining**: Often 2-3x what people estimate  
• **Subscriptions**: Forgotten services add up  
• **Shopping**: Impulse purchases hide in plain sight

### Taking Action

Once you identify an area to improve:

1. Set a specific target (e.g., "Reduce dining by 20%")  
2. Track progress weekly using Disha One  
3. Adjust as needed based on results

Categories aren't just for organization—they're tools for financial transformation.

### Ready to take control of your finances?

Start tracking your spending automatically with Disha One.