What is the purpose of a spending diary?

A spending diary serves the primary purpose of tracking daily expenses. By regularly recording all expenditures, individuals can gain insight into their spending habits, which helps in understanding where their money goes. This awareness allows for better budgeting, identifying areas where they might be overspending, and ultimately aids in achieving financial goals. Tracking daily expenses provides valuable data that can be used for more informed financial decision-making, leading to improved financial management.

The other options do not align with the purpose of a spending diary. Calculating taxes owed involves a different set of financial activities, including understanding tax laws and gathering specific financial information, which is beyond the scope of simply tracking spending. Identifying investment opportunities and monitoring stock market performance require analytical skills and a different focus, typically involving research and analysis rather than a routine log of personal spending.