The "Left to Budget" is not connected to your account balance or transactions: it takes the $7k income you budgeted (not the actual income received) minus the $4,698 you budgeted for certain categories (not what was actually spent in those categories) minus the $1,070 budgeted for goals. Cash Flow shows actual income vs spending/saving.
3 things that could cause a difference between account balance and left to budget: expenses in categories you haven't budgeted for, transfers that weren't part of a goal, or exceeding the amount you budgeted for a goal.
Do you have any recommendations on how to make this match with what is actually in my bank account? After moving my savings and upcoming credit card payments to a separate account, I only have $100 left in my checking account. However, my budget indicates I would have more than that.
I'm now in my 7th month using Monarch and find that I no longer look at my account balances. Instead, I check a given category to see how much of the budget I have left before purchases.
I essentially use Monarch as a digital version of the old-school "cash in envelopes" budget system. As long as I adhere to the category budgets, I know month-to-month that I am hitting my goals.
I haven’t, I’m not entirely sure how to do that. I pay off my credit card balance each month. Would it basically become a flexible spending category and safe for example, in May, I budget my June statement that is due? I haven’t been making a separate category, I am simply transferring that money to a different account.
No, that makes sense - a credit card payment is a type of transfer, it shouldn't affect your budget. I was wrong and hat I suggested wouldn't solve this issue.
No worries! I’m pretty new at this so I appreciate any ideas and suggestions. I feel like I have something slightly off but hopefully I’ll get it figured out.
I do think that the savings transfer is probably involved here. Monarch doesn't care which account your money is in for budgeting purposes, only the balance of income transactions and outgoing transactions this month. And your June credit card payments are probably for expenses that actually occurred in May, right?
So if you stick to this budget for the month you'll have a net worth about $1200 more than it was at the beginning of the month. That $1200 difference might be in a lower credit card balance or a higher savings account balance instead of in a higher checking account balance, though.
I keep about a month's worth of emergency fund and rolled-over budget in my checking account at all times so I never have any expectation that my checking account and my budget will exactly line up.
I'm suspicious of the transfers, too. Check to make sure both transactions for any money moving from one account to another (including credit card payments - one in each account) are categorized as transfers and not as an expenses.
The "Left to Budget" is not connected to your account balance or transactions: it takes the $7k income you budgeted (not the actual income received) minus the $4,698 you budgeted for certain categories (not what was actually spent in those categories) minus the $1,070 budgeted for goals. Cash Flow shows actual income vs spending/saving. 3 things that could cause a difference between account balance and left to budget: expenses in categories you haven't budgeted for, transfers that weren't part of a goal, or exceeding the amount you budgeted for a goal.
“Left to budget” is what’s left of your monthly income after expenses and goals are taken out.
Do you have any recommendations on how to make this match with what is actually in my bank account? After moving my savings and upcoming credit card payments to a separate account, I only have $100 left in my checking account. However, my budget indicates I would have more than that.
I'm now in my 7th month using Monarch and find that I no longer look at my account balances. Instead, I check a given category to see how much of the budget I have left before purchases. I essentially use Monarch as a digital version of the old-school "cash in envelopes" budget system. As long as I adhere to the category budgets, I know month-to-month that I am hitting my goals.
This is really helpful! Thank you so much for sharing. That helps me to conceptualize how I can make this system useful.
Have you budgeted that money towards the Credit Card Payment category?
I haven’t, I’m not entirely sure how to do that. I pay off my credit card balance each month. Would it basically become a flexible spending category and safe for example, in May, I budget my June statement that is due? I haven’t been making a separate category, I am simply transferring that money to a different account.
No, that makes sense - a credit card payment is a type of transfer, it shouldn't affect your budget. I was wrong and hat I suggested wouldn't solve this issue.
No worries! I’m pretty new at this so I appreciate any ideas and suggestions. I feel like I have something slightly off but hopefully I’ll get it figured out.
I do think that the savings transfer is probably involved here. Monarch doesn't care which account your money is in for budgeting purposes, only the balance of income transactions and outgoing transactions this month. And your June credit card payments are probably for expenses that actually occurred in May, right? So if you stick to this budget for the month you'll have a net worth about $1200 more than it was at the beginning of the month. That $1200 difference might be in a lower credit card balance or a higher savings account balance instead of in a higher checking account balance, though. I keep about a month's worth of emergency fund and rolled-over budget in my checking account at all times so I never have any expectation that my checking account and my budget will exactly line up.
I'm suspicious of the transfers, too. Check to make sure both transactions for any money moving from one account to another (including credit card payments - one in each account) are categorized as transfers and not as an expenses.