The idea
Instead of looking at your balance, work out how much of it is actually free to spend. Start with the money you have available, subtract the bills still to come before your next income, and subtract anything you have set aside for goals.
A simple formula
Safe to spend today = (money available - bills still to come - money reserved for goals) / days until your next income. If the answer is small, you know to slow down before you run short, not after.
Keep it honest
Include irregular bills such as annual subscriptions and insurance. Review the number when something changes, and keep your records up to date, because the result is only as good as the data behind it.
Try it
Vaulta is Aerosoul's money app. It shows a safe-to-spend number that updates with every transaction, with bills, goals, receipt scanning and statement import.
This article is general information, not financial advice.
