# Budgeting Concepts Envelope budgeting mechanics, category strategy, and special scenarios for Actual Budget. ## Category Templates Use these as starting points. Adapt based on what the user tells you about their life. Don't create categories they won't use — you can always add more later. ### Single person, renting ``` Housing: Rent, Utilities, Internet, Renter's Insurance Food: Groceries, Dining Out, Coffee Transportation: Gas/Transit, Car Insurance, Car Maintenance, Parking Personal: Clothing, Personal Care, Health/Medical, Subscriptions Lifestyle: Entertainment, Hobbies, Gifts Financial: Savings, Emergency Fund, Investments Income: Salary, Side Income ``` ### Single person, homeowner Add to the above: ``` Housing: Mortgage, Property Tax, HOA, Home Insurance, Home Maintenance ``` Remove: Rent, Renter's Insurance ### Couple, shared budget ``` Housing: Rent/Mortgage, Utilities, Internet, Insurance Shared Living: Groceries, Household Supplies, Dining Out Transportation: Gas/Transit, Car Insurance, Maintenance Kids (if any): Childcare, School, Activities, Kids Clothing Personal - [Name A]: Clothing, Personal Care, Hobbies, Fun Money Personal - [Name B]: Clothing, Personal Care, Hobbies, Fun Money Financial: Emergency Fund, Savings Goals, Investments Debt (if any): [Card Name] Debt Income: [Name A] Income, [Name B] Income, Partner Contributions ``` ### Freelancer / variable income Add: ``` Business: Equipment, Software, Professional Services, Business Travel Taxes: Estimated Taxes, Tax Prep ``` Key difference: Budget conservatively using the lowest expected monthly income. In good months, put extra toward savings or taxes. ## Category Management ### Category groups Categories are organized into groups. ```bash # Create a group fscl categories create-group "Fixed Expenses" # Create categories in the group fscl categories create "Rent" --group fscl categories create "Utilities" --group fscl categories create "Internet" --group ``` ### Merging categories If you have duplicate or redundant categories, delete one and transfer its transactions: ```bash # Move all "Foods" transactions to "Food", then delete "Foods" fscl categories delete --transfer-to --yes ``` ### Income categories Create income categories in the income group: ```bash fscl categories create "Salary" --group --income fscl categories create "Freelance" --group --income ``` ## Month Setup The fastest way to set up a new month is to copy from the previous month: ```bash fscl month copy 2026-01 2026-02 ``` Alternatively, use `month draft` + `month apply` for selective editing, or templates for automated budgeting. ## Goal Templates Use category-level templates to automate month setup. ```bash # Generate editable template draft fscl month templates draft # Edit templates.json (add/update template arrays) fscl month templates apply --dry-run fscl month templates apply # Validate + apply for the month fscl month templates check fscl month templates run 2026-03 ``` ## Income Handling When you receive income: - It becomes immediately available to budget (appears in "Available Funds" / "To Budget") - If you don't budget it this month, it rolls over to next month - Common strategy: "hold" current month's income for next month's budget, so you're always budgeting with last month's income Using fscl, income shows up as a positive-amount transaction categorized to an income category. ## Overspending When you overspend in a category (balance goes negative): - **Default behavior:** The negative balance is automatically deducted from next month's "To Budget" amount, and the category balance resets to zero - This means overspending reduces your ability to budget next month - To handle it: move money from another category to cover the overspent amount, or accept that next month will have less to budget ### Rollover overspending (carryover) Sometimes you want to keep a negative balance across months (e.g., tracking reimbursable expenses). Enable per-category: ```bash fscl month set-carryover 2026-02 true ``` When rollover is enabled, the negative balance stays in the category instead of being deducted from "To Budget." ## Returns and Reimbursements ### Returns A return is not income — it goes back to the category you originally spent from. Enter the return as a positive-amount transaction with the same category: ```bash fscl transactions add --date 2026-02-10 --amount 32.99 \ --payee "Amazon" --category --notes "Sandals return" ``` This restores $32.99 to the Clothing category balance. ### Reimbursements For reimbursable expenses (business travel, shared costs): 1. Create a dedicated category (e.g., "Business Expenses") 2. **Option A: Pre-fund** — Budget money into the category before spending. True zero-budget approach. 3. **Option B: Carry negative** — Let the category go negative, enable rollover overspending, and refill when reimbursed. ```bash # Create category and enable carryover fscl categories create "Business Expenses" --group fscl month set-carryover 2026-02 true # Spend (category goes negative if not pre-funded) fscl transactions add --date 2026-02-05 --amount -150.00 \ --payee "Hotel" --category --notes "Client trip" # Receive reimbursement (positive amount, same category) fscl transactions add --date 2026-02-20 --amount 150.00 \ --payee "Employer" --category --notes "Trip reimbursement" ``` ## Joint Accounts ### Shared budget (recommended for committed couples) Both partners use the same budget file. Sync via an Actual Budget server so both can access it. Setup: 1. Create a joint checking account 2. Use the shared budget on a synced server 3. Create a "Partner Personal Spending" category (with rollover) for tracking personal purchases made on the shared account 4. Track income contributions via a "Partners Contributions" income category ### Personal budget with shared account Track your partner's contributions in your own budget: 1. Create the joint account on-budget 2. Your transfers to the joint account don't need a category (on-budget to on-budget transfer) 3. Your partner's deposits are categorized as income (use a "Partner Contribution" income category) 4. Budget the full bill amounts in shared expense categories ### Contribution strategy For proportional contributions based on income: - If Partner A earns $4,000/month and Partner B earns $6,000/month - Total = $10,000. Partner A contributes 40%, Partner B contributes 60% - If shared expenses are $3,000/month: A pays $1,200, B pays $1,800