Your Money Plan
Complete Calculations Guide
Document Version 1.4 | Last Updated: July 2026
Plan at a Glance
The whole system comes down to a few simple ideas. Here is the plain-language version — the rest of this guide shows the exact math behind each one.
Every dollar gets a job
Your plan starts with the money you expect to bring in, then gives every dollar a purpose — bills, spending, saving, and goals. When income minus everything you have planned equals zero, your plan is balanced.
Big yearly bills, split into months
Instead of getting hit with a large once-a-year bill, Your Money Plan spreads it evenly across the year. You set aside a small amount every month so the money is ready when the bill arrives.
We use what you actually earned
Early in the month, before paychecks land, your plan uses your expected income so it never looks like you are in the red by mistake. As money comes in, you confirm what you actually received and the numbers update to reality.
Goals are savings, not spending
When you fund a future goal, that money is treated as savings you are transferring to yourself — it leaves your spending budget once, and is tracked as progress toward the goal. It is never counted twice.
The Annual Plan Fund is a piggy bank
Your monthly contribution is money set aside into one shared fund. Paying an annual bill is real spending — it shows in Spent in full and draws the fund down on paper, so it never breaks your monthly plan. Draw more than you have funded so far and the app asks where the cash comes from right now.
Closing out keeps you honest
When a yearly category is done, you close it out. Money left over is freed up to move elsewhere — another category, savings, or your fund. If you spent more than you saved, you record where the extra came from so nothing is double-counted.
Table of Contents
1Understanding Plan Categories
Your Money Plan organizes your plan into six category types. Each type stores plan amounts differently:
| Category Type | What It's For | How Plan is Stored |
|---|---|---|
| Fixed | Bills that stay the same each month (rent, insurance) | Monthly amount |
| Variable | Expenses that change (groceries, gas, entertainment) | Monthly amount |
| Annual | Expenses occurring once per year (car registration) | Yearly amount |
| Income | Money coming in (salary, side income) | Monthly amount |
| Debt | Debt payments (credit cards, loans) | Monthly amount |
| Future Goals | Savings and investments for the future | Monthly contribution |
Key Concept
- • Fixed, Variable, Income, Debt, Future Goals: You enter the MONTHLY amount
- • Annual: You enter the YEARLY amount
2Monthly Plan Calculations
How Monthly Plan is Calculated
For Fixed, Variable, Income, Debt, Future Goals:
For Annual categories:
Example (Standard 12-Month Year)
| Category | Type | Amount Entered | Monthly Plan |
|---|---|---|---|
| Rent | Fixed | $1,500/month | $1,500 |
| Groceries | Variable | $600/month | $600 |
| Car Insurance | Annual | $1,200/year | $1,200 ÷ 12 = $100 |
| Amazon Prime | Annual | $139/year | $139 ÷ 12 = $11.58 |
3Annual Plan Calculations
How Annual Plan is Calculated
For Fixed, Variable, Income, Debt, Future Goals:
For Annual categories:
Example (Standard 12-Month Year)
| Category | Type | Amount Entered | Annual Plan |
|---|---|---|---|
| Rent | Fixed | $1,500/month | $1,500 × 12 = $18,000 |
| Groceries | Variable | $600/month | $600 × 12 = $7,200 |
| Car Insurance | Annual | $1,200/year | $1,200 |
4Income & the Monthly Check-In
Your plan is built on the income you expect each month. But early in the month — before your paychecks actually arrive — counting only the money that has landed would make it look like you are deep in the red. Your Money Plan handles this with a simple two-stage approach.
Before income arrives:
Your plan stays balanced and never shows a false deficit.
As income arrives:
The numbers update to match real life as you confirm each deposit.
The monthly check-in
For each recurring income source, your plan asks a quick question: “Did you receive this?” You can confirm the expected amount, enter a different amount, or skip it. This keeps the “money in” side of your plan honest without you having to do any math.
- Confirm: the income counts at the amount you actually got
- Edit: got a different amount? Enter the real number
- Skip: not received yet? Your planned amount keeps the plan balanced for now
Why this matters
On day 2 of the month you have not been paid yet, but your rent is still due. Using your expected income means your plan reflects the wholemonth from day one — so you see the true picture instead of a scary “negative” that is not real.
5Future Goals (Saving, Not Spending)
A Future Goal is money you are setting aside for something ahead — a trip, a new car, a holiday fund. The key idea: funding a goal is a transfer to yourself, not an expense. The money leaves your spending budget once and shows up as progress toward the goal. It is never counted twice.
Monthly contribution to a goal:
Unlike annual bills (which always divide by 12), goals divide by the months left until your target date — so you stay exactly on pace.
How it shows up in your plan
- A contribution line leaves your monthly plan (the dollars going toward the goal)
- A matching goal balance grows by the same amount (your savings progress)
- Because it is a transfer, it is excluded from your “spending” totals so nothing is double-counted
Example: Saving for a $3,000 Vacation
| Detail | Value |
|---|---|
| Goal amount | $3,000 |
| Already saved | $600 |
| Months until trip | 8 |
| Monthly contribution | ($3,000 − $600) ÷ 8 = $300 |
6Partial Year Calculations (First Year Users)
When you start using Your Money Plan mid-year, the app frames your first budget year around the months you actually have left (e.g. May–December). Important: this partial-year window is used for year-to-date framing only. Your monthly set-aside for Annual expenses is always the annual amount ÷ 12, in both year 1 and later years—it is not divided by the remaining months.
How Total Months is Calculated
If you started this calendar year:
Total Months = 12 - Month You Started
If you started in a previous year:
Total Months = 12 (full year)
Month Reference Table
| Month Started | Month Index | Total Months in First Year |
|---|---|---|
| January | 0 | 12 - 0 = 12 months |
| February | 1 | 12 - 1 = 11 months |
| March | 2 | 12 - 2 = 10 months |
| April | 3 | 12 - 3 = 9 months |
| May | 4 | 12 - 4 = 8 months |
| June | 5 | 12 - 5 = 7 months |
| July | 6 | 12 - 6 = 6 months |
| August | 7 | 12 - 7 = 5 months |
| September | 8 | 12 - 8 = 4 months |
| October | 9 | 12 - 9 = 3 months |
| November | 10 | 12 - 10 = 2 months |
| December | 11 | 12 - 11 = 1 months |
Partial Year Example
Scenario: You start planning in May 2024
Total Months in Plan Year = 8 (May through December)
| Category | Type | Amount Entered | Monthly Plan (Year 1) | Monthly Plan (Year 2+) |
|---|---|---|---|---|
| Rent | Fixed | $1,500/month | $1,500 | $1,500 |
| Car Insurance | Annual | $1,200/year | $1,200 ÷ 12 = $100 | $1,200 ÷ 12 = $100 |
Why This Matters
Your monthly set-aside for an Annual expense is always the annual amount ÷ 12, even in your first (partial) year. This keeps your monthly contribution smooth and predictable. The partial-year window below only affects how your budget yearand year-to-date totals are framed—it does not change the monthly amount you set aside.
7Year-to-Date (YTD) Calculations
YTD Plan:
YTD Remaining:
YTD Spending:
That start is January 1st once you're past your first year. In a partial first year (see Section 6), it's the month you actually started — a May starter's “YTD” begins in May, not January.
YTD Percent Used:
Example: June 30 (6 months into the year)
| Metric | Calculation | Result |
|---|---|---|
| Annual Plan | (given) | $36,000 |
| YTD Plan | $36,000 × (6 ÷ 12) | $18,000 |
| YTD Spending | Sum of expenses | $16,500 |
| YTD Remaining | $18,000 - $16,500 | $1,500 |
| YTD Percent Used | ($16,500 ÷ $18,000) × 100 | 91.7% |
8Plan Status & Warning Calculations
Monthly Plan Status
Amount Remaining:
Percent Used:
Projected Spending:
Status Levels
Status is based on pace, not just a flat percent of plan — a category's color reflects where you're projected to land by month end, compared against how far through the month you actually are. (Fixed and Debt bills work a little differently: paying one in full always shows green, since there's nothing left to project. Annual categories use their own fund-based model — see the Annual Plan Fund section below.)
| Status | Condition | Color |
|---|---|---|
| On Track | Spending is at or under the pace needed to stay within plan | Green |
| Warning | Not over yet, but projected to land over plan by month end at the current pace | Yellow/Orange |
| Beyond Plan | Already spent 100% or more of plan | Red |
Example: Pace Beats a Flat Percent
Scenario — the same mid-month grocery check as the Spending Analysis example below
- • Monthly grocery budget: $800
- • Today: day 15 of a 31-day month
- • Spent so far: $450
| Calculation | Formula | Result |
|---|---|---|
| Percent of Plan Spent | ($450 ÷ $800) × 100 | 56% |
| Projected Spending (Daily Rate × Days in Month) | ($450 ÷ 15) × 31 | $930 |
| Status | $930 projected vs. $800 plan → $130 over | Warning |
Only 56% of plan is spent — well under a flat 75% threshold — but at the current pace this category is projected to land $130 over its $800 plan by month end, so it correctly shows Warning (amber) rather than On Track (green). A flat percent-of-plan rule would miss this early, and would also flag false warnings late in the month for a category that spent a lot of its plan early but has since slowed down and is actually on pace to finish within budget.
9Spending Analysis Calculations
Average Daily Spending:
Average Weekly Spending:
4.33 is the real average number of weeks in a month (52 weeks ÷ 12), not a flat 4 — so a $600 grocery budget paces to $138.57/week, not $150.
Category Percentage:
Month-over-Month Change:
10Annual Plan Fund & Closing Out
The Annual Plan Fund is one shared pool that holds the money you set aside for all of your yearly expenses. Think of it as a piggy bank: you add a little every month, and when a yearly bill comes due you take the money back out. This way a big once-a-year cost never blindsides you.
Fill it up, then draw it down
- Your monthly contribution is money set aside — sequestered into the fund, shown under “Set aside,” never under “Spent”
- Paying a yearly bill is real money out the door — it counts in Spent this month in full, and on paper it draws the fund down
- It can never put you over your day-to-day plan: “Left this month” tracks everyday spending only, and the draw nets out of “Set aside”
- Draw more than you’ve funded so far (but within the year’s plan) and it’s a timing gap — when you log it, the app asks where the cash comes from right now (this month’s income, savings, a category trim, or credit); your upcoming contributions self-correct the fund
Fund balance at any time:
Monthly contribution:
Set aside this month (net):
Positive means your funds grew; negative shows as “Drew from your funds”— the purchase came out of money you’d already sequestered.
Why doesn’t a big bill break your month?
The bill shows honestly in Spent, but it nets out of Set aside— so your plan room (“Left this month”) and your over-plan flags only ever feel the level monthly contribution, never the lump.
Example: Paying a $1,200 Insurance Bill from the Fund
| Metric | Value |
|---|---|
| Monthly set-aside ($1,200 ÷ 12) | $100 |
| Saved in the fund after 12 months | $1,200 |
| Bill paid — shown in Spent this month | $1,200 (in full — honest money out) |
| Set aside that month (net: $100 target − $1,200 drawn) | −$1,100 — “Drew from your funds” |
| “Left this month” / over-plan flags | Unchanged — fully pre-funded |
Closing Out an Annual Category
When an annual expense is finally paid (for example, your car insurance bill arrives), you close outthat category for the year. You enter the actual amount you spent, and Your Money Plan compares it to what you planned and saved for. One of two things will happen — either you have money left over, or you came up short.
Leftover (Within Plan):
A positive number is money you don't need anymore.
Shortfall (Beyond Plan):
A positive number is money that has to come from somewhere else.
If you come up short, the money has to come from somewhere
Spending more than you set aside doesn't make the extra money appear — it has to be pulled from another part of your plan. When you close out a beyond-plan category, Your Money Plan asks where the money came from so your records stay honest. Common sources include:
- Leftover surplus from another annual category
- Your Annual Plan Fund pool balance (if it's built up a reserve)
- A fixed or variable category you spent less on
- Outside money such as savings, a credit card, a loan, or a gift
It's your money to use as you wish — the goal is simply to know where it went so nothing is double-counted.
If you have money left over, you can put it to work
Spent less than you planned? That surplus is freed up the moment you close out the category. You decide where it goes:
- Move it to another annual category that may run short later
- Return it to your Annual Plan Fund pool to cover future bills
- Send it to savings or your emergency fund
- Simply close out and keep it as breathing room in your plan
Example: Closing Out Car Insurance
| Metric | Left Over | Came Up Short |
|---|---|---|
| Amount Planned (for the year) | $1,200 | $1,200 |
| Actual Bill Paid | $1,050 | $1,375 |
| Result at Close-Out | +$150 surplus | $175 short |
| What Happens Next | Reallocate the $150 to another category, the pool, or savings | Record where the $175 came from (pool, another category, or outside funds) |
11Examples & Scenarios
Scenario 1: New User Starting in August
Setup:
- • Plan start date: August 1, 2024
- • Total months in first year: 5 (August - December)
| Category | Yearly Amount | Monthly (Year 1) | Monthly (Year 2+) |
|---|---|---|---|
| Car Registration | $300 | $300 ÷ 12 = $25 | $300 ÷ 12 = $25 |
| Holiday Gifts | $600 | $600 ÷ 12 = $50 | $600 ÷ 12 = $50 |
| Annual Subscriptions | $500 | $500 ÷ 12 = $41.67 | $500 ÷ 12 = $41.67 |
| TOTAL | $1,400 | $116.67/month | $116.67/month |
Note: even though only 5 months remain in the first calendar year, Annual set-asides are still divided by 12, so your monthly amount is the same in Year 1 and Year 2+. The “5 months” window only affects year-to-date framing, not the monthly contribution.
Scenario 2: Mid-Month Plan Check
Setup:
- • Today: May 15 (halfway through the month)
- • Monthly grocery budget: $800
- • Amount spent so far: $450
| Metric | Calculation | Result |
|---|---|---|
| Percent of Month Elapsed | 15 ÷ 31 × 100 | 48% |
| Percent of Plan Spent | $450 ÷ $800 × 100 | 56% |
| Daily Spending Rate | $450 ÷ 15 | $30/day |
| Projected Month End | $30 × 31 | $930 |
| Projected Beyond Plan | $930 - $800 | $130 over |
Interpretation:You're spending faster than your plan allows. At this rate, you'll be $130 beyond plan by month end.
12Net Worth (Balance Sheet)
Net Worth:
Assets and debts are summed with their signs (an overdrawn account or overpaid card can read negative and nets out) — nothing is forced positive.
Change This Month (per item):
For a debt, a negative change means you paid it down — which raises net worth.
Where each row's balance comes from:
- Synced rows are managed by the app and always match their home page: the Annual Plan fund uses the same ledger balance as the Annual Plan page, goal funds use the same effective amount as the Goals page (saved base + logged contributions), and the savings/emergency/charity reserves show their fund balances.
- “Borrowed from future plans”is the debt balance created when you cover an over-plan expense by borrowing instead of pulling from a fund — the balance sheet is where that borrowing stays visible until it's repaid.
- Rows you add (bank accounts, house, IRA, credit cards, loans) keep a monthly history: every balance edit stamps the current month, and the beginning-of-month value is the latest stamp from an earlier month (or the balance the item was added with, so adding an item never counts as growth).
Quick Reference Formulas
Monthly
- Fixed/Variable: Amount entered
- Annual: Yearly ÷ Total months
- Remaining: Plan - Spent
- % Used: (Spent ÷ Plan) × 100
Annual
- Fixed/Variable: Monthly × Total months
- Annual: Amount entered
- Total: Sum of all categories
YTD
- Plan: Annual × (Elapsed ÷ Total)
- Remaining: YTD Plan - Spent
- % Used: (Spent ÷ YTD Plan) × 100