Budgeting in Quo Money
Quo Money provides three categories of budgets:
- Regular budgets
- Fixed budgets
- One-off or Planned budgets
Quo Money is about maximising your financial resources. Small changes in expenditure have the potential to change your future forecast significantly.
By separating budgets into three categories, Quo Money provides a quick way for you to understand how your money is being spent.
Regular budgets - These budgets are based on your spending behaviour, often cover multiple merchants, and are repeating, e.g. £50 every month for travel.
Fixed budgets - These budgets are your income, Direct Debits, Standing Orders and Subscriptions.
One-Off - These budgets are the one-off, point in time budgets you have created, such as buying a new TV.
Regular and One-Off budgets identify expenditure, that can be quickly changed. Fixed budgets change less frequently, typically when a contract ends, but you can sometimes make big changes by switching provider.
By providing a distinction between the three types of budgets, Quo Money will help you understand your finances better, and provide you with the tools to manage your finances more efficiently.
Which budget should I use?
When Quo Money nudges you to plan for the future, which type of budget should you use?
Any budget created can be changed to any other type of budget. E.g. you can create a one-off budget and change it to a fixed budget.
Fixed budgets should be used when you have a contract with a single supplier, e.g. BT for your broadband, or Netflix. Fixed budgets are typically monthly, and usually have the same amount per instalment. How to create a fixed budget.
Regular budgets should be used when something happens regularly and involves more than one supplier, e.g. your groceries. You know it will happen, but you may shop at different times and in different shops. The important part is that you are recognising the expenditure and are planning accordingly. Quo Money will help you track how much you have spent and how much you have left. How to create a repeating budget.
One-Off budgets should be used when something happens that is not likely to repeat regularly. E.g. an impromptu night out. Or the purchase of a new TV. How to create a one-off budget.
The anatomy of a budget
All budgets are comprised of the following.
- Budget name - What you want to call your budget
- Is it a transfer? - Are you transferring money to another account?
- Is it income or expense?
- The amount that will be spent.
- One or more schedules - When you will spend your money.
- Category - This will help you to understand where you are spending your money.
- Zero or more merchants - Where the money will be spent.
It is important to stress that transfers are just a budgeting tool and do not move the actual money between your accounts.
If you have multiple accounts in Quo Money, you can budget transfers between them. You have to move the money using your banking application.
Budgeting transfers is a very effective way of increasing your savings. See Understanding Transfers for more detail.
Each budget contains one or more schedules. Schedules provide a way to forecast when money will leave to enter your account.
By creating more than one schedule, you can model different behaviour. E.g. it is quite common to have a monthly grocery shop along with a smaller weekly shop to top up the fresh items such as milk. To do this create two separate schedules, one monthly, one weekly. See Understanding Schedules for more detail.