Step 4: Budget your allowances
Each allowance is assigned a budgeting section, which can be accessed from the middle navigation bar.
At the top of your budget overview, you’ll see the Budgeted Amount you have currently set aside for your budget. This is the money being deducted from your allowance to create your Spend amount. At first your Budgeted amount will be $0.00, but it will increase as you set aside money toward your budget.
How do I set aside money for my budget?
This can be done by creating Stashes. Think of Stashes like containers you can stuff money into, such as an envelope or a piggy bank. When you create a stash, any money allocated to it will be subtracted from your allowance to create your Spend Amount - this way you know that this money is spoken for and cannot be safely spent.
How do I know what stashes to create?
There are many, many budgeting methods you can use when deciding what stashes to create. Some prefer methods which keep their categories broad, (50/30/20) while others like to take a more granular approach (Zero based budgeting). The budgeting method you choose will be highly personal, but the general rule of thumb is that the broader your categories, the less precise your Spend amount will be.
How do I create a stash?
Once you’ve decided on a budgeting method, select “Create a Stash” at the bottom of your budgeting section. This will open your Create A Stash form.
From there, you're first going to fill out some basic info, such as the stash Name. This is technically the only information that isn’t optional while creating a stash. You can stop here if you’d like, or continue on to get a little more specific. The way you fill out this form will influence whether your stash is categorized as an Expense, Goal, or Savings stash. But we’ll get into that later.
Next, you can specify a Starting Amount. This is the amount you’d like to put in right now. This is immediately followed by a Target Amount, which is the amount you’d like your stash to reach eventually. If you leave this blank, your stash will be categorized as Savings in your budget.
Next, you also have the option to add due date(s) to your stash. Here you can specify Frequency (how often your target amount will come due), and when it’s Due on (the specific day this amount will be charged). If you select “Once” as your frequency, this stash will be categorized as a Goal in your budget. Selecting any other frequency option will categorize the stash as an Expense instead .
Lastly, you have the option to “transfer money to Spend amount on due date”. This automates spending, deducting your target amount from this stash and adding it to your spend amount on the day it is due.
If you prefer a more hands on approach, feel free to ignore this option. You can also wait until the transaction appears in your activity section and assign it to this stash manually later on.
Finally, you can Set a funding schedule. Select this option if you would like your stash to be funded automatically on a recurring basis.
First specify the funding Frequency - how often you would like to fund this stash. If you get paid on a regular basis, we strongly recommend aligning this with your pay day, or just after it is due to deposit. That way money is put toward your stashes from every paycheck before you ever miss it!
Next, select the date you would like the funding schedule to start on. Again, we would strongly recommend you align this with your pay date.
Last, set your Funding Amount. This is the amount you’d like to set aside each funding date. If you selected a due date in the previous step, this has already been calculated for you to ensure enough is set aside by that time. This can be overridden, though it isn’t recommended as your stash may end up off track and underfunded by the time your due date arrives.
When you go to create your Stash, a prompt may appear if Halfsies detects that your starting amount is too low. If this is the case, you can allow Halfsies to adjust the amount for you so that your stash is on track for your selected due date. Otherwise, your stash will be created in an "off track" state, which you will want to square up later, at some point before it is due.
And that’s it! Once your stash is created, Halfsies will sort it automatically into one of the following categories: Expenses, Goals, or Savings
What’s the difference between Expenses, Goals, and Savings?
These categories differentiate between which items are part of your usual monthly budget, and which items are not.
Expenses are items with a recurring due date, such as rent, utilities, and subscriptions.
Goals are items with a singular due date or target amount, such as holidays, birthdays, vacations, or that gaming console you’ve been wanting.
Funds are flexible, broad stashes with no specific due date or end goal in mind. You can throw them at unplanned or impromptu expenses as they arise - such as emergency funds, groceries, car maintenance, etc.