Personal guide

How to create a Flexible Spending Targets budget

Learn to plan a monthly budget in Cashflow Pilot, track spending by category, and adjust your targets as life changes.

Reviewed against Cashflow Pilot B.10.280 release notes · 11 Oct 2026

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Budgeting tutorial

Start with a simple monthly spending plan

Flexible Spending Targets is Cashflow Pilot’s standard budgeting method. You decide roughly how much you expect to earn and spend in a month, then compare your plan with what actually happens. You do not have to allocate every dollar in your accounts before making a budget.

A good fit if: You want to answer “How much can I spend on groceries this month?” without setting up a full envelope budget.

Set up your first budget

Flexible Spending TargetsA monthly spending target without Beta Zero-Based screens.

1. Open Personal → Budgets

Keep Flexible Spending Targets selected. If you are just getting started, choose a current month. Your existing budget and transactions can stay in place.

2. Estimate your monthly income

Think about what you normally receive from pay, pensions, or other regular income. If your income varies, choose a cautious estimate. Don't treat an expected deposit as money already in your bank account.

3. Choose spending categories

Start with rent or mortgage, groceries, utilities, transport and other bills. Look through one to three recent statements for amounts you can realistically use, rather than setting every target unrealistically low.

4. Set your monthly targets

Enter an amount for each category you want to track. You can start with a handful of categories and add more as you get familiar with your spending.

Example: a monthly budget

Suppose your expected monthly income is $3,600. Here's a sample plan. These figures are illustrations—you would use your own categories and transactions.

CategoryMonthly targetActual spending
Housing$1,600$1,600
Groceries$500$560
Transport$250$210
Dining out$200$170
Utilities$300$290
Entertainment$150$140
Other$250$230
Total$3,250$3,200

Your targets add up to $3,250. With $3,600 of expected income, that leaves $350 not committed to these spending targets in your plan. It is not a confirmed available bank balance. Groceries are $60 over their target, even though total spending is $50 below the combined target.

Check your spending during the month

5. Import or enter transactions

Bring in supported bank or credit-card statements, or enter activity manually. Review categories, transfers and possible duplicates. Cashflow Pilot can suggest categories, but you should check unusual purchases.

6. Compare targets with actual spending

Look at which categories are under or over their monthly targets. Adjust the target if your original estimate was wrong, or reduce spending in another category if you want to keep the overall plan.

In our example: Groceries exceeded the target by $60. You could increase its target to $560 and reduce another flexible category, or accept the difference and plan more realistically next month.

Keep it useful over time

7. Plan for bills that don't arrive every month

Annual insurance, school expenses and holidays can make an otherwise normal month expensive. For a $1,200 annual bill, consider planning $100 each month. A spending target is a plan; it does not automatically move cash to a savings account.

8. Review next month

Compare the month's final spending with your targets, then update the following month. This method is about monitoring spending and planning ahead—not automatically carrying a cash envelope balance into the next month.

Common questions

Do I need to link my bank?

No. You can use manually added transactions and supported statement imports.

Will a budget target stop a payment?

No. Targets help you understand and plan spending. They do not stop card purchases or payments.

Can I use a credit card?

Yes. Review purchase transactions separately from credit-card payments so the same spending is not counted twice.

What if I want to allocate only the money I have?

Try Zero-Based Budgeting (Beta), which starts with confirmed account balances and available money.

Related guides

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