Classic Budgeting

How It Works: Classic Budgeting is a traditional approach to managing finances, where users allocate their income to predefined categories such as rent, groceries, utilities, and more. Users estimate their expected income for a given period and distribute it among these categories based on their typical expenses​​.

Best For:

• Simplicity Seekers: This method is ideal for those who prefer a straightforward and easy-to-manage budgeting style without frequent adjustments.

• Low Maintenance Users: It requires less ongoing attention and is well-suited for individuals who want a set-it-and-forget-it method for their budget.

Benefits:

• Ease of Setup: Users simply need to input their expected income and allocate it to expense categories.

• Predictable Management: Since the income is allocated to predefined categories, users have a clear picture of where their money is going from the outset.

• Less Time-Intensive: This method does not require regular monitoring or adjustment, making it a good fit for users with stable and predictable finances​​.

Potential Drawbacks: classic budgeting may not account for fluctuations in income or unexpected expenses as easily as other methods, making it less adaptable to financial changes and it also does not carry over pending allocation amounts.

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Quick example

You have two sources of income for the month:

• Salary: $2,500

• Freelancing: $1,000

This gives you a total income of $3,500 to work with for the month. Here's how you would allocate this income toward your various categories:

• Rent: $1,200

• Groceries: $400

• Utilities: $300

• Debt Repayment: $500

• Entertainment: $300

• Savings: $600

• Miscellaneous: $200

You can change or customize your categories at any time by going to the side menu and selecting "Groups and Categories." This allows you to tailor your budget to fit your unique financial needs.

After allocating your money, the app updates your total, ensuring that all $3,500 is assigned to different categories.

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Steps in the App:

1. Enter Income Sources:

   • First, add your Salary of $2,500 under the "Income" category.

   • Then, add your Freelancing of $1,000 under the same category. The app will now display a total income of $3,500.

   • Entering Income: Add multiple income sources and see your total income updated automatically.

   
2. Allocate Funds:

   • Now, navigate to the expense categories. You start by allocating $1,200 for rent, followed by distributing the remaining funds to categories like groceries, utilities, and savings.

   • The app will update the amounts as you allocate, ensuring that your total income of $3,500 is fully assigned.

   • Allocating Funds: Distribute your income across various categories and watch the total update in real-time.