Feature guides
Envelope budgeting with carry-over
What should happen to the $40 left in Groceries when payday resets your budget? Budgey gives you three answers — here is how to pick.
6 min read · Updated July 2026 · All guides
Every period-based budget has to answer one question: when a new period starts, what happens to what you didn't spend? Keep it fresh and simple, or carry balances forward like cash envelopes you keep stuffing? Both are legitimate schools of budgeting, and apps usually force one on you.
Budgey supports both — and a third, purer envelope mode — through a per-budget setting called Carry balances over. This guide explains the three modes, who each one fits, and how to switch without breaking your history.
The three carry-over modes
Fresh start (carry-over off) — the default. Every new period, each category resets to its template allocation. $250 for groceries means $250 every period, regardless of what happened last time. It is the simplest mental model, forgiving of bad weeks, and the right starting point for most new budgeters.
Add to allocation is classic envelope rollover, the style YNAB users know. Money still in a category is added on top of the new period's allocation. Finish a period with $40 left in Groceries and the next period starts at $290. Overspending carries too. Go $30 over and the next period starts at $220. Categories become envelopes with a memory, and the unspent amount builds slack for lumpy bills.
Running balance — the purest envelope mode. Categories get no automatic allocation at all; they are standing balances you top up with deposits when you choose. It effectively turns categories into named sub-accounts — a "car maintenance" envelope you feed $50 a payday and draw on when the brakes squeal.
Which mode fits you?
- ✓New to budgeting, or rebuilding the habit → Fresh start. Every payday is a clean slate; one bad period cannot snowball.
- ✓Steady habits, saving inside categories for irregular expenses (car repairs, gifts, annual bills) → Add to allocation. Your restraint accumulates where you can see it.
- ✓Coming from YNAB or paper cash envelopes → Add to allocation will feel like home, minus the homework.
- ✓Want sinking funds you control completely → Running balance, funded by deposits on your own schedule.
- ✓Unsure? Start Fresh, and switch on carry-over once you want unspent category money to stick around.
Turn on carry-over
- 1
Open your budget settings
Find "Carry balances over" in the budget's settings on web or mobile.
- 2
Choose your mode
Pick add-to-allocation rollover or running balance (or turn carry-over off to return to fresh starts). The choice applies to the whole budget.
- 3
Start your next period
From the next period boundary, unspent money and overspends carry according to the mode. Each category shows what was carried in versus freshly allocated, so the math stays clear.
- 4
Watch overspends — they carry too
In rollover mode, a category you overspend starts the next period short. That is the feature: the envelope tells the truth. Cover it by transferring from a flush category, or let the deficit remind you to spend gently there.
Your questions
What is envelope budgeting?+
Envelope budgeting splits your money into purpose-labeled envelopes (groceries, gas, fun) and you spend each envelope only on its purpose. When an envelope is empty, that spending stops until it is refilled. Digital versions like Budgey keep the envelopes as categories and do the math, including carrying unspent balances from one pay period into the next when you turn that on.
Does unspent money roll over to the next period in Budgey?+
Your choice. By default each period starts fresh at its plan. On Core and Plus, Carry balances over moves the unspent amount into the next period, either added on top of the next allocation, or as a running balance you fund with deposits. Overspends carry forward too.
What happens to overspending when balances carry over?+
It follows you — deliberately. If Groceries goes $30 over and rolls into a $250 period, the category starts at $220. You can cover the gap by transferring from another category or just live lighter there for a period. Carrying deficits is what keeps rollover budgeting truthful instead of quietly optimistic.
What are sinking funds and how do I set them up in Budgey?+
A sinking fund is money set aside a little at a time for a known future expense — car repairs, holiday gifts, an annual insurance bill. In Budgey, use a carry-over category: with add-to-allocation mode, allocate a small amount each period and let it accumulate; with running-balance mode, deposit into the category on your own schedule and draw on it when the expense arrives.
Is Budgey like YNAB's envelope system?+
With carry-over set to add-to-allocation, unspent money and overspends roll forward per category, the way YNAB-style envelopes do. Carry-over is one setting on a budget that already works.
Put it into practice
Core is $5/mo or $40/yr on iOS, Android, and Web. Budgey will build your first budget with you in about two minutes.
Core $5/mo or $40/yr · Plus $10/mo or $100/yr · iOS, Android, and Web