English
Spending Concentration
Spending concentration measures whether your expenses are concentrated in a few categories. Concentration is neither good nor bad by itself — but it is an important lens for understanding the risk and diversity of your spending structure.
Where to find it
| Platform | Location |
|---|---|
| Web app | Left menu "Insights & Analysis → Spending Concentration" |
| Other platforms | Analysis features are being aligned gradually; for the full experience use the web app |
Core metrics
- Gini coefficient: a value between 0 and 1. The larger the value, the more your expenses concentrate in a few categories; a small value means expenses are evenly spread
- Lorenz curve: a curve that intuitively shows "how much spending the top few categories contribute cumulatively"
- Pareto distribution: identifies "the top categories that contribute most of the spending", for example the top three categories accounting for 70% of total expenses
- Monthly trend: how concentration changes month by month, to see whether the structure is deteriorating or improving
How to interpret it
| Pattern | Possible interpretation |
|---|---|
| Concentration stays high | Spending depends on a few categories, and a swing in one of them will noticeably affect the whole |
| Concentration is low and stable | Expenses are evenly distributed and the structure is fairly robust |
| Concentration suddenly rises | Usually a new large expense — or a new category of them — has appeared; it is worth reviewing |
Concentration is a "health indicator", not a KPI
There is no need to tune concentration to some target number. Its value lies in spotting structural change: when concentration fluctuates abnormally, drill down in Income & Expense Insights to see which category caused it.