THE GLOSSARY · BUDGET
Envelope rollover
What is left — or what is missing — at the end of the month, carried into the next. The mechanism that separates a budget from a good intention.
By the Yoseri News desk · · 1 min read
Envelope rollover — the balance of a budget category at the end of the month, added to or subtracted from its cap the following month.
It works both ways. A Groceries envelope capped at $600 and spent to $512 starts the next month at $688. A Restaurants envelope capped at $220 and spent to $265 restarts at $175.
It is the second half that does the work. Without rolling over the overruns, going past your cap has no consequence — and a cap without consequence is not a cap.
The accumulated rollover is real money: $96, then $154, then $218 over three consecutive months in the example above. It appeared on no statement before it was worked out, and it can fund an annual provision.
In Yoseri, these settings sit on the Budget page: an overrun rolls over just as a surplus does, and the next month’s cap is recalculated accordingly.
Yoseri News is an educational publication. Nothing in this article is investment advice, a recommendation to buy or sell, or tax advice. Yoseri is registered as neither an adviser nor a dealer with any market authority.