Creating a new budget

Create budgets for all of your categories to help plan for your future as well as track historical income and expenses. Use your budgets in PocketSmith to help stay on track with your earning and spending.

In this user guide

Creating a budget on the Budget page

1
Head to Budget & Reports > Budget
2
Each of your categories will be displayed on this page ready to be budgeted. Navigate to the category for which you would like to create a budget and click Start

Tip

Before you create a budget, PocketSmith will highlight your average spending or earnings figure for each category, based on the transactions you have categorized. For example, for the Automotive category above, the average spend is $40 / mo

PocketSmith will also show how many transactions have been assigned to a category for that period. In the example above, the Automotive category has 1 transaction assigned to it.

3
The Start Budget window will open where you will be able to choose options for this budget:
  • Category 
    This will already display the category you chose to create a budget for
  • Amount 
    Apply an amount - we recommend setting round numbers for budgets that vary (e.g. Groceries) and exact amounts for ones that don't (e.g. Insurance or Salary)
  • Repeating 
    Are you budgeting for a repeating expense or income? Choose from the repeating options so that this budget repeats in the future. Learn more here: Repeating budgets and how to make changes to them
  • Color 
    Add a color to your budget. This will be reflected in various graphs within PocketSmith and on the Calendar
  • Type 
    Select whether this is an expense or an income budget
  • Scenario 
    This is another name for "account". Select which account you would like this budget to forecast against. This means that on the calendar, you can select this account and see how the budget affects the account's balance
  • Transfer 
    If the transactions in this budget category are moving between your accounts, set it up as a transfer budget. Learn more here:  Creating a transfer budget
  • Description 
    Add any extra details that you want to add to this budget.

4
Once you have entered all the details for the budget, click Save
5
This category will now display on the Budget page as a budgeted category


Creating a budget on the Calendar page

1
Head to Forecast > Calendar
2

Click on New budget or the day you would like your budget to occur on (or to start on, if you are setting up a repeating budget

3
The Start Budget window will open where you will be able to choose options for this budget:
  • Category 
    Select a category to apply this budget to
  • Amount 
    Apply an amount - we recommend setting round numbers for budgets that vary (e.g. Groceries) and exact amounts for ones that don't (e.g. Insurance or Salary)
  • Repeating 
    Are you budgeting for a repeating expense or income? Choose from the repeating options so that this budget repeats in the future. Learn more here:  Repeating budgets and how to make changes to them
  • Color 
    Add a color to your budget. This will be reflected in graphs around PocketSmith and on the Calendar
  • Type 
    Select whether this is an expense or an income budget
  • Scenario 
    PocketSmith uses your budgeted earning and spending to create your forecast. This means that when you view the forecast graph for a particular account on the Calendar page, the budgets assigned to that account are creating and affecting the forecast. We call the forecast for each account a primary scenario. For this section, select which account you would like this budget to forecast against.
  • Transfer 
    If the transactions in this budget category are moving between your accounts, set it up as a transfer budget. Learn more here:  Creating a transfer budget
  • Description 
    Add any notes for this budget

4
Once you have entered all the details for the budget, click Save
5
This category will now display on the Calendar page on the date it is set to occur

Note

If the checkbox Show actuals in history is ticked, then you won't see any past budgets on your calendar instead, your actual transactions will be displayed. To see past budgets, un-tick Show actuals in history.

6
You can click on any budget event on the calendar to edit that budget.

After making changes to a repeating budget, click Update, and you'll be provided with options to manage how the changes are applied. Learn more here:  Options for applying changes to a repeating budget

Tip

Every budget you create will be applied to your forecast (such as the forecast graph at the top of the Calendar page). The more budgets you add so that it will match your actual earning and spending, the more accurate your forecasted balances will be and you'll be able to see how your finances look projected into the future!


FAQs

Why am I asked to associate a budget with a scenario? What happens if I spend money towards this budget from a different account? 

When creating a budget, you're asked to associate it with a 'scenario' - this is just the forecasting part of an account. We recommend you choose the account that the expense is most likely to come from (or that the income is likely to go into). 

This is so that budgets can be applied to that particular account (scenario) in order to forecast your future balances for the account.

When viewing the Forecast graph on the Calendar page, if you click on a particular account, the budgets assigned to that account will be what is affecting the forecast. In other words, we use the term 'scenario' to refer to an account that has budgets applied to it. 

The scenario is used purely for forecasting the account balances! You can still create a budget and compare your earning and spending in that budget category if it has transactions across different accounts assigned to it. Any transaction assigned to a category counts towards the budget for that category regardless of the account it came from. 

How do I create a budget for payments that occur on the 1st and 15th of the month?

Although you can't technically create two occurrences within one budget event, you can work around this by creating two (or more) budgets of the same name which repeat on the days you want. For example, one series for the 1st, and another for the 15th. PocketSmith will then combine these for you on the Budget page.

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