The envelope method · Step 7

Managing unexpected events

When an envelope runs out, move money from another envelope to cover it. Always.

Sooner or later, something happens you didn't plan for. The car needs a repair. A bill is higher than usual. You spend more than an envelope has.

The rule

Move money from other envelopes to cover it. Always. The money really is gone, so another envelope has to give some up. That keeps your budget true.

You choose where it comes from

Look at your envelopes and decide which one can give up some money. Take it from there, and put it into the one that ran short.

Do it in Smarter Budget

1. An envelope that ran short shows as Overspent.
2. Tap Cover, and choose where the money comes from.
3. To move money at any other time, use Move money.

All steps

General information only, not financial advice. Think about your own situation, and talk to a qualified professional before big financial decisions.