How do budgets work?

When you first sign up for Monarch, we will automatically import your most recent transactions and estimate a budget for you! Your first step should be to double-check that information and adapt it to your needs.

Review your recent transactions to make sure the common ones are categorized correctly. Make sure paychecks are categorized as income, make sure your rent or mortgage is categorized as housing, look for your regular grocery stores and the like.

For budgeting purposes, it's easier to start with a shorter list of categories. Look at your categories and disable any that you don't think you'll use. You can always re-enable a disabled category later. 

The First Time Budget

There are a few categories that we show by default on the Budget page. These are suggestions based on popular categories but you don't have to keep them. Edit any budget amount by clicking on it.

When you click on the budgeted amount you'll see your historical spend which you can use to decide on the appropriate budget amount for the month (this is why correctly categorizing transactions is important).

Make sure to select "Apply to all future months" if you want to carry any changes into future months.

We are shown the projected expenses of Ride Sharing, Public Transportation, Gym, and Life Insurance categories

Then, there are other categories that are collapsed as "Unbudgeted".

We are shown an alert asking to show one unbudgeted expense

Expand to see these categories and set budget amounts for them. You can set a $0 budget for anything that you don't want to budget for right now.

Savings

Once you have your budgets for income and expenses, we'll show you the difference in the Savings bar in the summary on the right. Over the month we'll track your progress towards your Savings based on your spending.

We are shown the Summary of Income and Expenses, with Savings being money that remains when Expenses are subtracted from Income

Editing Budgets

You can one-click adjust a category back to your recent average spending by clicking on the planned amount. If you want your changes to apply to future months, make sure to click the "Apply to future months" box.

We are shown the use of a budget page where categories labelled Fun Money, Personal, and Clothing are having their planned amounts adjusted

Congrats on setting up a new budget! This is a major step in getting organized and deciding how to spend and save your money. We want to make this process as quick and painless as possible.

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Pro Tips

1. Use the "Apply to all future months" option when a budget amount for a category stays the same every month. This way you don't need to recreate the whole budget every month.

2. Move Money between categories to keep your overall monthly spending on track.

3. Delete any categories you don't need to track so that they don't clutter up your list.

 

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