Budgeting concepts
This page explains the ideas behind the Budget page: pockets, Ready to Tuck, and carryover.
The two views of your money
Section titled “The two views of your money”Nestbalm keeps two views of your money side by side. One view is what the bank says: accounts, payments, balances. The other view is your family’s plan: what each euro is for.
For example, a salary of €2,500 arrives. The bank view shows €2,500 more in the account. The plan view still shows that money without a purpose, until you tuck it.
The Transactions page shows the bank view. The Budget page shows the plan view.
The plan never moves money. Your money stays in your bank accounts; the plan only says what it is for.
Pockets
Section titled “Pockets”A pocket is a place in your budget where you tuck money for one purpose. For example, €200 tucked into the Groceries pocket is set aside for groceries. To tuck money is to set it aside in a pocket, so it has one purpose.
On the Budget page, each pocket is a row.
A pocket is not a bank account. The money stays where it is; the pocket only gives it a purpose.
Ready to Tuck
Section titled “Ready to Tuck”Ready to Tuck is money that has come in but hasn’t been given a purpose yet.
For example, after the €2,500 salary arrives and your household tucks €200 into Groceries and €900 into Rent, €1,400 is still Ready to Tuck.
The Budget page shows this amount at the top.
Ready to Tuck is not the same as money in a pocket. Money in a pocket has a purpose; Ready to Tuck is still waiting for one.
Carryover
Section titled “Carryover”Carryover is money left in a pocket at the end of the month that stays there for the next one.
For example, the Groceries pocket ends March with €30 in it. April starts with €30 already in the pocket, before anyone tucks anything new.
Each month, a pocket adds up three numbers: what is in the pocket now is the carryover, plus what you tucked in this month, minus what your household spent from it.
Carryover is not extra money. It is the same money, keeping its purpose across the month change.
Overspent
Section titled “Overspent”Overspent means a pocket’s spending went past what you tucked in.
For example, Groceries is €40 over what you set aside. You can move money from another part of the budget, or leave it and adjust next month.
On the Budget page, an overspent pocket shows a negative number.
Overspent is about one pocket, not the whole budget. The other pockets keep their money.