How to Build Local MCP Servers | MCP Trilogy | CampusX

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Code - https://github.com/campusx-official/expense-tracker-mcp-server Quick Revision - https://docs.google.com/document/d/1xLHPVi07Jy3vZUjDNnC7BivUpN1Ro0aYDxP09yD3pzs/edit?usp=sharing In this video, we continue our MCP (Model Context Protocol) playlist and show you how to build your own MCP server from scratch. We focus on creating a local Expense Tracker MCP server that can integrate with chatbot clients like Clot Desktop, so you can manage expenses using natural language commands. You’ll see how to: Set up the environment and install dependencies Write and run Python code with FastMCP (a beginner-friendly layer over the MCP SDK) Create MCP tools like add, list, and summarize expenses Connect the server with Clot Desktop for real interaction Debug using MCP Inspector Store and manage expenses with an SQLite database Add features like date-range filtering and category consistency Along the way, we explain the MCP ecosystem, the difference between the official SDK and FastMCP, and why FastMCP makes development easier. We also show how to enforce categories with JSON resources and even convert a FastAPI app into an MCP server — a big advantage for businesses building multi-platform apps. By the end of this tutorial, you’ll have a working expense tracker MCP server and a clear roadmap to turn it into a production-ready remote server. ============================ Did you like my teaching style? Check my affordable mentorship program at : https://learnwith.campusx.in DSMP FAQ: https://docs.google.com/document/d/1OsMe9jGHoZS67FH8TdIzcUaDWuu5RAbCbBKk2cNq6Dk/edit#heading=h.gvv0r2jo3vjw ============================ 📱 Grow with us: CampusX' LinkedIn: https://www.linkedin.com/company/campusx-official CampusX on Instagram for daily tips: https://www.instagram.com/campusx.official My LinkedIn: https://www.linkedin.com/in/nitish-singh-03412789 Discord: https://discord.gg/PsWu8R87Z8 E-mail us at support@campusx.in ⌚Chapters⌚ 00:00 - Introduction and playlist recap 00:40 - Overview of MCP Why, What, How structure 02:01 - Setting goals for today: building a local MCP Expense Tracker server 04:19 - Demonstration of natural language expense tracking with chatbot integration 13:59 - Explanation of MCP SDK vs FastMCP libraries and ecosystem history 26:00 - Step-by-step coding: setting up the environment, installing dependencies 29:00 - Writing MCP server tools: dice roll and add numbers example 31:34 - Running and debugging MCP server using MCP Inspector 35:34 - Integrating server with Clot Desktop client 40:30 - Adding SQLite database for storing expenses 43:50 - Implementing features: add expense, list expenses, summarize expenses 49:51 - Improving server with date range filtering and category consistency 58:36 - Using JSON resource for category management 01:02:49 - Discussion on FastMCP and FastAPI compatibility and benefits for businesses 01:08:37 - Converting FastAPI app into MCP server for multi-platform deployment 01:11:28 - Conclusion and next steps: converting local server to remote server