This page explains how you create a budget. We go through adding a budget name and amount. The tags you want to track and the importance of budgeting.
Need to Read
Before you go any further I would recommend that you look at The Importance of Tagging Levels. This is absolutely fundamental to building great budgets and without it budgets can get a little confusing.
What you need to make a Budget?
Want to know how much you spend on coffee? What you spent on Amazon. Well we can set that up nice and easily here. Below I have listed the information you'll need to add a new budget. Before you go wild I would recommend reading the The importance of tagging levels in Budgets.
- Budget name: Name the budget however you like
- Budget Amount: This is where how decide the amount you would like to dedicate to this budget.
- Budget Colour: Got a budget preference, choose it here
- Add the tags you want to track in this budget: This is where you choose the relevant tags you want to keep a track of.
- Previous Months Total: Based on the tags you have chosen you will see the previous months total automatically calculated.
The importance of tagging levels In Budgets
So I might go a bit slow here, but understanding this will go a long way to making your budgets helpful and accurate. You will remember that tags come in 3 levels. Level 1 Tags at the Top and Level 3 Tags at the bottom. This represents a sort of 'tree diargram' with lots of level 2 and 3 tags branching off of a level 1 tag.
So if you create a budget called 'Clothes' and add the Level 1 Tag Appearance then every time a transaction is tagged Appearance OR any level 2 or 3 tag that branches from Appearance it will be included in the budget. What this means is that you need to be accurate when you tag.