What is left to budget on Monarch is a dynamic, user-specific figure that represents the remaining funds available for spending or saving within a given budgeting period after accounting for income and planned expenses.
Monarch Money's "left-to-budget" feature is a core component designed to empower users with effective financial management by helping them balance their income against their expenses. This metric is not a static value but a real-time reflection of your financial position within the app, showing how much money you have remaining to allocate to various categories or save after your planned spending.
Understanding "Left to Budget" in Monarch Money
The concept of "what is left to budget" is central to proactive financial planning. Monarch Money calculates this amount by taking your total income for a period (e.g., a month) and subtracting all your committed expenses and planned budget allocations.
- Income - Expenses = Left to Budget: This simple equation forms the basis. As you categorize transactions and track your spending, Monarch updates this figure, providing clarity on your financial headroom.
- Balancing Income and Expenses: The feature actively helps users balance their income and expenses effectively, ensuring they don't overspend and can work towards their financial goals.
Proactive Planning with the Forecast Page
A key aspect of Monarch's budgeting capabilities is its Forecast Page. This page is instrumental in helping users visualize and manage their future finances.
- Setting Future Budgets: On the forecast page, users can set budgets for upcoming months. This foresight allows for proactive financial planning, anticipating future income and expenses, and making adjustments as needed.
- Encouraging Proactive Financial Planning: By enabling users to plan ahead, Monarch encourages a forward-looking approach to money management. This reduces financial stress and promotes better decision-making. For example, if you anticipate a large expense next month, you can adjust your current month's "left to budget" to save more.
How Monarch Helps You Track What's Left
Monarch Money integrates various tools to help you keep a close eye on your "left to budget" amount:
- Real-time Updates: As transactions clear and are categorized, Monarch automatically updates your budget figures, giving you an immediate sense of your remaining funds.
- Budget Category Overviews: Within each budget category, you can see how much you've spent versus what you've allocated, helping you identify areas where you might be over or under budget.
- Goal Tracking Integration: Funds "left to budget" can often be directed towards savings goals or debt repayment, making it easier to track progress towards larger financial objectives.
Example Scenario
Consider a hypothetical user's monthly budget:
| Category | Planned Budget | Actual Spend |
|---|---|---|
| Monthly Income | $5,000 | |
| Housing | $2,000 | $2,000 |
| Groceries | $600 | $550 |
| Transportation | $250 | $200 |
| Utilities | $150 | $160 |
| Entertainment | $300 | $280 |
| Savings Goals | $500 | $500 |
| Total Budgeted | $3,800 |
In this scenario:
- Total Income: $5,000
- Total Budgeted/Planned Expenses: $3,800
- What is left to budget (at the start of the month/planning): $5,000 - $3,800 = $1,200
This $1,200 represents the initial "left to budget" amount, which can then be allocated to other flexible categories, additional savings, or simply remain as unallocated funds. As the month progresses and actual spending occurs, Monarch Money dynamically adjusts this figure based on how much is actually spent versus budgeted, allowing for real-time adjustments and insights.
By leveraging these features, Monarch Money aims to simplify the budgeting process, making it easier for users to understand their financial standing and make informed decisions.
