Envelope Types Explained

When creating an envelope, you'll choose its type from three options: variable, fixed, and savings. Each type of envelope serves a different purpose.

Here's a breakdown of each envelope type:

• Variable Envelopes: use for expenses that vary each budget cycle, like groceries, dining out, entertainment, etc.

  For variable envelopes, the budgeting suggested amount is based on the average you've spent in that envelope over the past 3 months.

• Fixed Envelopes: use for consistent expenses with a payment schedule, such as debts, rent/mortgage, cell phone bills, insurance premiums, etc. You can estimate the expense amount and set up a payment schedule for these envelopes.

  If you set up a payment schedule you'll receive payment reminders too! For fixed envelopes, the budgeting suggested amount is based on the total amount of your bill divided by the number of budgets you'll have between now and your bill due date (based on your budget frequency set in the budget flow).

• Savings Envelopes: use for saving money towards future expenses or big plans you anticipate. You can set a 'goal amount' and even a 'deadline' if you have a specific timeframe in mind.

  For savings envelopes with a deadline date, the budgeting suggested amount is based on the number of budgets you have between now and your deadline date (based on your budget frequency set in the budget flow).