Personal Finance Tracker
Personal FinanceDocumentation
  • Guides
Overview
  • Introduction
Getting Started
  • Getting Started
  • Creating Your Account
  • Understanding the Dashboard
  • Setting Up Your Profile
Bank Accounts
  • Bank Accounts
  • Adding a New Account
  • Viewing Account Details
  • Editing Account Information
  • Managing Multiple Accounts
Transactions
  • Transactions
  • Filtering & Searching
  • Adding an Expense
  • Adding Income
  • Viewing Transaction Details
  • Editing Transactions
  • Bulk Editing
  • Deleting Transactions
Smart Input Features
  • Smart Input
  • Voice Input for Transactions
  • Receipt Scanning
Budgets
  • Budgets
  • Creating a Budget
  • Setting Budget Categories
  • Tracking Budget Progress
  • Editing Budgets
  • Budget Alerts
Goals
  • Goals
  • Creating a Financial Goal
  • Contributing to Goals
  • Tracking Goal Progress
  • Editing Goals
  • Completing Goals
Reports & Analytics
  • Reports
  • Viewing Financial Reports
  • Understanding Charts
  • Pie Charts & Breakdowns
  • Exporting Reports
  • Monthly/Yearly Summaries
Preferences & Settings
  • Preferences
  • Customizing Preferences
  • Notification Settings
  • Currency & Format
  • Account Settings
Tips & Best Practices
  • Tips
  • Budgeting Best Practices
  • Goal Setting Strategies
  • Organizing Transactions
  • Using Categories Effectively

Budgeting Best Practices

Tips for creating and maintaining effective budgets

1

Start with Realistic Limits

Base your budget limits on actual spending history, not aspirational goals:

  • Review past months' spending in Reports to see real patterns
  • Set initial budgets 10-15% above your average spending
  • Gradually reduce limits as you build better spending habits
  • Don't set limits so low that you constantly exceed them
2

Budget Every Major Category

Create budgets for all significant spending categories:

  • Food & Dining (usually the largest expense)
  • Transportation (gas, parking, public transit)
  • Bills & Utilities (rent, electricity, internet)
  • Entertainment (movies, hobbies, subscriptions)
  • Shopping (clothing, household items)

Missing categories lead to untracked spending that can derail your financial goals

3

Review and Adjust Monthly

Make budgeting a regular habit:

  • Review budget performance at the end of each month
  • Look at the Yearly Spending Chart to identify trends
  • Adjust limits for the upcoming month based on expected expenses
  • Increase budgets for months with known extra costs (holidays, travel)
4

Use Budget Alerts Wisely

Enable budget alerts in Preferences to stay informed:

  • Orange alerts at 80% give you time to slow spending
  • Red alerts at 100% indicate you've exceeded your limit
  • Check the Budgets page regularly to see real-time status
  • Act on warnings before they become problems
5

Plan for Variable Expenses

Some categories vary significantly month-to-month:

  • Create separate budgets for variable categories (travel, gifts, home repairs)
  • Use higher limits during peak months (December for gifts)
  • Set aside “buffer” amounts in Other category for unexpected expenses
  • Review yearly patterns to anticipate seasonal spending
6

The 50/30/20 Rule

A popular budgeting framework to consider:

  • 50% Needs: Bills, utilities, housing, groceries
  • 30% Wants: Dining out, entertainment, hobbies
  • 20% Savings: Emergency fund, goals, investments

Use the Category Spending Breakdown pie chart to see if your distribution aligns with this rule

7

Track Progress Over Time

Use the Yearly Spending Chart to measure success:

  • Count how many months you stayed under budget
  • Watch for improvement trends (more green bars, fewer red bars)
  • Celebrate when you have more under-budget months than over-budget
  • Use yearly totals to set goals for the following year