I haven’t played with the budgeting features myself yet, only watched the video, but am I right in thinking you can’t currently do “envelope budgeting”?
With envelope budgeting you:
- Create an envelope for type of expenditure you have, as well as savings goals (so an envelope for your quarterly energy bill, another for petrol, another for monthly supermarket shopping, another for the yearly family holiday, etc.).
- When you get paid, 100% of your incoming money gets portioned out to your envelopes. If you get paid monthly, each envelope gets a months worth of what it needs.
- Whenever you want to spend some money, you look to see how much money is in the relevant envelope. If there’s no money left, or you think the money left might not last the rest of the month if you make this spend, you don’t spend. Otherwise you take the required amount of money out of the envelope and spend it.
- You’re not able to spend anything without taking something out of the envelope (no free cash in the current account, no overdraft), so you must always stick to your budget. (But obviously, as you’re first learning your budgets, you can adjust the relative size of different envelopes and move cash between them.)
I went from having no savings and not knowing where any of my money was going, to now being in complete control of my finances and being able to save and invest, using this technique. I used Starling goals to do it.
Can I continue a similar methodology in Dozens?