The rollover features built in to Tiller's budgeting tools are useful if you prefer to use the envelope or zero sum budgeting method and want to have unspent budget amounts for a category roll over into the next period. The intent is that you allocate every dollar you plan to earn to an expense category, including savings.
Category rollovers are like mini, virtual savings accounts. As you spend and receive income, you will accrue savings (or debt) on a category-by-category level. The net budget-versus-actuals on each of these categories will accrue as a rollover at the end of each period. You may start a period with a favorable rollover if you underspent on Groceries, for example, or an unfavorable rollover if you had an unexpected Auto repair.
Net Actuals = Total Rollover
Your Total Rollover savings, the sum of all of the category rollovers should track one-to-one to your Net Actuals. As with savings, if you make more than you spend during a period, your Total Rollover should increase; the contrary is also true. For example, if you make $5,000 in a period, but manage spending to $4,000 (net actuals +$1,000), the net sum of all of your rollovers for that period should be $1,000.
Here’s how rollover budgeting works with the Tiller Budget template:
- You must have a “Rollover To” value set for each category if you want to use a zero sum or envelope budgeting style.
- Rollovers are applied to a category automatically at the start of a new period and represent the money was left over (“remaining”) within a budget amount for the category.
- Rollovers can be negative.
- Unearned but budgeted for income can also rollover into the next period.
- Move amounts between category budgets and rollover balances using the Adjust cell and the dynamic adjustment shortcuts to avoid accruing negative rollovers.
- Total Rollover Savings (at the top of your budget) should track with your account balances.
A Rollover Adjustment will appear in the next period as a correction factor if:
- You have uncategorized transactions.
- Your income budget does not equal your expense budget for a period.
- You forget to assign a Rollover To for all categories.
Rollover Adjustments are easy to correct and help you keep your rollover savings accurate.
Using a rollover budgeting method is not required. If you do not want to use these features, simply leave the Rollover To column blank on your Categories sheet. You can still use the adjustment workflows if you need to move money between categories and you won’t see rollover adjustments or rollover savings accrue if you don’t set a Rollover To for any categories.