Getting a Month Ahead

One of the key financial strategies for reducing stress and improving financial stability is budgeting a month ahead. This means that when you sit down to budget for the current month, you're only using income that you earned in the prior month (or earlier). This approach ensures that you are not relying on future paychecks to cover expenses and allows you to plan with greater confidence.

Understanding the Budgeted Amount

At the top of the Budget screen, you'll see the Budgeted amount for the current month. This is the sum of all category goals and any manual goal adjustments you've made.

The total budgeted number is color-coded to help you quickly assess your financial position:

• Green - Your entire budget for the month is covered by income from previous months.
• Orange - You are using some of the current month's income.
• Red - You are borrowing from the future, meaning you've budgeted more than your available funds.

Breaking Down the Budgeted Amount

When you hover over the total budgeted number, a breakdown will appear, showing how much of the budgeted amount comes from different sources:

• From Prior Income - Money earned in previous months that you are now using to budget.
• From This Month's Income - Money earned in the current month that you are using for this month's budget.
• Borrowing From the Future - Money that has been assigned to categories beyond your available funds, creating a shortfall.

How to Get a Month Ahead

If your budgeted number is orange or red, here are some steps to work towards getting a full month ahead:

1. Build an Income Buffer - Start setting aside money each month specifically to fund the next month's budget.
2. Reduce Expenses Temporarily - Cutting back on non-essential spending can help you accumulate a buffer more quickly.
3. Assign Windfalls Wisely - Tax refunds, bonuses, or any unexpected income can be used to fund next month's budget.
4. Track Spending and Adjust Goals - Ensure that your budget aligns with your real spending habits to avoid overspending.
5. Avoid Borrowing from the Future - Be mindful of the red warning and adjust your budget to stay within your actual available funds.

By consistently applying these strategies, you'll eventually reach a point where you can fund your entire budget with last month's income. When that happens, your budgeted amount will be fully green, and you'll have the peace of mind that comes with true financial security.