> ## Documentation Index
> Fetch the complete documentation index at: https://docs.finluency.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Set up a budget for planned spending

> Create a repeating budget for one or more categories so Finluency reserves planned spending in your forward balance.

A budget reserves money for spending you expect in certain categories, one period at a time. Finluency holds back the unspent part of each period in your forward balance, so your forecast accounts for spending you haven't scheduled yet. To learn how budgets fit with other transaction types, see [Transaction states](/concepts/transaction-states#budget).

## Before you begin

* Decide which categories the budget covers. A category can belong to only one budget during any given period.
* Decide whether to assign the budget to a financial account. Assigning one is optional.
* You can't change a budget's name, categories, or schedule after you save it. You can still adjust each period's amount later.

## Create a budget

<Steps>
  <Step title="Open the budget form">
    In the side menu, click **+ Budget**. The **Budget Template** form opens.
  </Step>

  <Step title="Name the budget">
    Enter a **Budget Name**. You can also add a short **Description**. Each budget needs a unique name.
  </Step>

  <Step title="Choose the categories">
    In **Budget Categories**, select one or more categories. Spending in these categories counts against the budget.
  </Step>

  <Step title="Choose an account (optional)">
    Select a **Financial Account** if you want the reserve to reduce that account's balance. Leave it blank to reserve against your total cash balance only.
  </Step>

  <Step title="Enter the amount">
    Enter the **Budget Amount** for each period. You can add **Notes** for your own reference.
  </Step>

  <Step title="Set the schedule">
    Under **Budget Scheduling**, choose how often the budget **Repeats**:

    * **Weekly** or **Yearly**: enter how many weeks or years apart each period is in **Every**.
    * **Monthly**: choose **Repeats Every** to set an interval, or **Specific Month(s)** to pick months.
    * **Quarterly**: choose **Every** to set an interval, or **Specific Quarter(s)** to pick quarters.
    * **Custom**: a single period from the start date to the end date. It doesn't repeat.
  </Step>

  <Step title="Set the start and end">
    Enter a **Start Date**. Then choose when the budget ends:

    * For interval schedules, set **End** to **None**, **By** a date, or **After** a number of occurrences.
    * For specific months or quarters, choose **No End (indefinite)** or **Repeat for** 1 to 10 years.
    * For a custom budget, enter an **End Date**.
  </Step>

  <Step title="Save the budget">
    Click **Save Budget Template**.
  </Step>
</Steps>

## Check the result

Finluency creates one budget transaction for each period, dated at the end of the period. On **Home**, find it in your transaction list. It shows the **Original Budget** amount. Expand it to see the **Budget Period**, how much you've **Used**, what's **Remaining**, and the period's status.

| Status       | What it means                                                              |
| ------------ | -------------------------------------------------------------------------- |
| **Active**   | The period is in progress.                                                 |
| **Locked**   | You closed the period before it ended. Its remaining amount is set to \$0. |
| **Past Due** | The period has ended but you haven't closed it.                            |
| **Closed**   | The period ended while it was closed. It can't be changed.                 |

To compare budgets with actual spending, open **Financial Overview** from the side menu:

* **Budget vs Actual** shows each budget's budgeted and actual amounts, with a status of **Good**, **On Track**, or **Over**.
* **Budget Summary** lists each budget by category and period, with its remaining amount.
* Click a budget in either section to see its periods and the transactions that count against them.

As you spend in the budget's categories, the reserved amount shrinks. It never drops below \$0. See [Forward balance](/concepts/forward-balance) for how the reserve affects your projection.

## Change or remove a budget period

You manage a budget one period at a time from its budget transaction on **Home**.

* **Change the amount**: Click the pencil icon, update the amount, and click **Save**. You can only change the amount, and only before the period ends.
* **Close a period**: Click the check icon (**Close Budget**). This sets the remaining amount to \$0 and releases the reserve from your forward balance. To undo it before the period ends, click **Reopen Budget**.
* **Delete a period**: Click the trash icon, then click **Delete**. This removes only that period.

<Warning>
  Deleting a period can't be undone. A period that is closed when it ends, or that you close after it ends, becomes permanently **Closed**. You can't edit, reopen, or delete it.
</Warning>

## Common problems

<AccordionGroup>
  <Accordion title="Why does it say a budget with this name already exists?">
    Each budget needs a unique name. Enter a different **Budget Name** and save again.
  </Accordion>

  <Accordion title="Why does it say a budget already exists for my categories?">
    One of your categories already belongs to another budget during an overlapping period. Choose different categories, or change the **Start Date** so the periods don't overlap.
  </Accordion>

  <Accordion title="Why can't I change the amount of a past period?">
    Once a period ends, its budgeted amount is fixed. You can still close the period to release any unspent reserve.
  </Accordion>

  <Accordion title="How do I change a budget's schedule or categories?">
    You can't change them after saving. You can adjust each period's amount, close periods, or delete periods you don't need.
  </Accordion>

  <Accordion title="Why doesn't my budget change my account's balance?">
    The budget isn't assigned to a financial account. Budgets without an account reduce your total cash balance only.
  </Accordion>
</AccordionGroup>

## Related

<CardGroup cols={2}>
  <Card title="Recurring transactions" icon="rotate" href="/guides/recurring-transactions">
    Add repeating income and expenses to your forecast.
  </Card>

  <Card title="Forward balance" icon="chart-line" href="/concepts/forward-balance">
    See how budget reserves affect your projected balance.
  </Card>
</CardGroup>