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Start with a simple monthly spending plan
Flexible Spending Targets is Cashflow Pilot’s standard budgeting method. You decide roughly how much you expect to earn and spend in a month, then compare your plan with what actually happens. You do not have to allocate every dollar in your accounts before making a budget.
Set up your first budget
1. Open Personal → Budgets
Keep Flexible Spending Targets selected. If you are just getting started, choose a current month. Your existing budget and transactions can stay in place.
2. Estimate your monthly income
Think about what you normally receive from pay, pensions, or other regular income. If your income varies, choose a cautious estimate. Don't treat an expected deposit as money already in your bank account.
3. Choose spending categories
Start with rent or mortgage, groceries, utilities, transport and other bills. Look through one to three recent statements for amounts you can realistically use, rather than setting every target unrealistically low.
4. Set your monthly targets
Enter an amount for each category you want to track. You can start with a handful of categories and add more as you get familiar with your spending.
Example: a monthly budget
Suppose your expected monthly income is $3,600. Here's a sample plan. These figures are illustrations—you would use your own categories and transactions.
| Category | Monthly target | Actual spending |
|---|---|---|
| Housing | $1,600 | $1,600 |
| Groceries | $500 | $560 |
| Transport | $250 | $210 |
| Dining out | $200 | $170 |
| Utilities | $300 | $290 |
| Entertainment | $150 | $140 |
| Other | $250 | $230 |
| Total | $3,250 | $3,200 |
Your targets add up to $3,250. With $3,600 of expected income, that leaves $350 not committed to these spending targets in your plan. It is not a confirmed available bank balance. Groceries are $60 over their target, even though total spending is $50 below the combined target.
Check your spending during the month
5. Import or enter transactions
Bring in supported bank or credit-card statements, or enter activity manually. Review categories, transfers and possible duplicates. Cashflow Pilot can suggest categories, but you should check unusual purchases.
6. Compare targets with actual spending
Look at which categories are under or over their monthly targets. Adjust the target if your original estimate was wrong, or reduce spending in another category if you want to keep the overall plan.
Keep it useful over time
7. Plan for bills that don't arrive every month
Annual insurance, school expenses and holidays can make an otherwise normal month expensive. For a $1,200 annual bill, consider planning $100 each month. A spending target is a plan; it does not automatically move cash to a savings account.
8. Review next month
Compare the month's final spending with your targets, then update the following month. This method is about monitoring spending and planning ahead—not automatically carrying a cash envelope balance into the next month.
Common questions
Do I need to link my bank?
No. You can use manually added transactions and supported statement imports.
Will a budget target stop a payment?
No. Targets help you understand and plan spending. They do not stop card purchases or payments.
Can I use a credit card?
Yes. Review purchase transactions separately from credit-card payments so the same spending is not counted twice.
What if I want to allocate only the money I have?
Try Zero-Based Budgeting (Beta), which starts with confirmed account balances and available money.
Related guides
- Choose a budgeting method
- Learn Zero-Based budgeting (Beta)
- Import transactions
- Understand cash-flow forecasts
Want the bigger picture? Explore the Personal, Portfolio and Business product tour →