Follow these steps when you’re first setting up your budget to use rollovers for envelope or zero sum budgeting.
- Open your Categories sheet and choose a Rollover To category for each of your budget categories. It can be the same category or a different category. Make sure each category has one set.
- Choose a subtype for your expense categories. Fixed or flex. Read more about the subtype column.
- Open your Budget dashboard and make sure your income budget for the current period (what you expect to earn this period) is equal to your expense budget. You’ll know it’s equal if you get a big green check mark in your budget status indicator area at the top of the dashboard.
- Open the Add-ons menu at the top of the Google Sheet and choose Tiller > Budget > Analyze Budgets History
- Write down the Rollover Adjustment value that’s displayed in the budget status indicator area at the top of your dashboard.
- Open the Add-ons menu at the top of the Google Sheet and choose Tiller > Budget > Adjust Category.
- Choose “Rollover Adjustment” for the “from” dropdown.
- Choose “(none)” for the “to” dropdown.
- Enter the amount of the Rollover Adjustment (including the negative (-) sign if it’s unfavorable) you wrote down in step 5 into the Amount box.
- Click “Adjust”
Correct Your Rollover Balances (optional)
You may want to set a rollover balance amount for your categories to add up to the Rollover Adjustment amount you wrote down in step 5. This Rollover Adjustment amount is your starting balance and essentially represents money that should exist in your bank account if it was a favorable Rollover Adjustment or money that you need to recover by saving (e.g. reducing a budget amount for a category in the current period) if it was an unfavorable Rollover Adjustment amount.
You can set the starting balance of a rollover by typing r=[amount] (e.g. r=400) into the Adjust cell for any category on any budget dashboard.
This is an optional step because you may decide you simply want to start fresh with this month (that’s why we recommend the steps to $0 out the Rollover Adjustment above) and accrue rollovers going forward or enter the starting balance for category rollovers based on what you’ve already accrued and tracked with other budgeting tools.