Money Tree
By Money Tree team,
How much can I spend today? The safe-to-spend method
Short answer: take the money in your everyday account, set aside the bills due before payday, set aside what you've planned for budgets and savings, keep a small buffer, then divide what's left by the days until you get paid. That figure is your safe-to-spend amount for today.
Most people check their balance before they buy something. The trouble is that a balance includes money that's already spoken for: rent on the 1st, a phone bill next week, the savings transfer you meant to make. Safe to spend strips those out so the number you see is the number you can use.
Step 1: Start with what's in your everyday account
Use the account you spend from, not your total across every account. Money in a savings account or an investment you don't touch day to day isn't part of this sum.
Step 2: Subtract bills due before your next payday
List every fixed payment that will leave before you're next paid: rent or mortgage, utilities, phone, insurance, loan repayments and subscriptions. Only count the ones due in this pay period. A bill due the day after payday belongs to the next one.
This is the step people skip, and it's why a healthy-looking balance can turn into a short week. If you're not sure what you pay for each month, your last two or three statements will show the repeat charges.
Step 3: Subtract what you've already planned
If you've decided to put money towards groceries, fuel or a savings goal this period, take that out too. Planned money isn't spare money, even if it hasn't moved yet.
Step 4: Keep a buffer
A buffer is a small amount you treat as invisible. It covers the things you didn't plan for: a parking fine, a forgotten renewal, a bill that came in higher than usual. Without one, every surprise comes out of tomorrow's spending.
Step 5: Divide by the days until payday
Whatever is left is what you can spend until you're next paid. Divide it by the number of days remaining and you have a daily figure.
A worked example
| Amount | |
|---|---|
| Everyday account balance | $1,400 |
| Bills due before payday (phone, power, streaming) | −$210 |
| Planned groceries and fuel | −$350 |
| Savings goal transfer | −$150 |
| Buffer | −$200 |
| Left to spend | $490 |
| Days until payday | 7 |
| Safe to spend today | $70 |
If you spend $40 today, tomorrow's figure goes up a little, because the unspent $30 rolls forward. If you spend $120, it goes down. Either way you can see the effect before the end of the week arrives.
Why one daily number works better than a full budget for some people
A detailed budget asks you to remember a dozen category limits at the checkout. A daily number asks one question: is this purchase under today's figure? People who've tried and dropped budgets often find that easier to keep up, because there's less to track in the moment.
It doesn't replace planning. You still decide what your bills, budgets and goals are. The daily number is how you check, at a glance, whether today's spending fits that plan.
Where the method goes wrong
- Forgetting irregular bills. Annual renewals and quarterly bills don't show up every month, so they get missed. Put them in the list for the period they fall due.
- Using the wrong balance. Pending card transactions may not have cleared yet. Count them as spent.
- No buffer. One surprise and the daily figure goes negative.
- Not updating it. The number is only right if it changes when your balance and bills change.
Doing it automatically
Working this out by hand each morning takes a few minutes and a list of bills you keep up to date. Money Tree does it for you. It connects to your bank read-only, detects your recurring bills and subscriptions, and shows one Safe to Spend number after upcoming bills, your budgets and a buffer you choose. You can keep that number on your iPhone home screen with a widget.
See what Money Tree does or download it on the App Store. New users get a 7-day trial of every feature.
Frequently asked questions
How do I work out how much I can spend today? Take the money in your everyday account, subtract bills due before your next payday, subtract what you've set aside for budgets and savings, subtract a small buffer, then divide what's left by the days until payday.
What is a safe-to-spend amount? It's the money left for everyday spending after upcoming bills, planned budgets and a buffer are accounted for. It answers one question: can I afford this today?
How big should my buffer be? There's no single right number. Many people start with enough to cover a surprise bill or a week of groceries, then adjust once they see how often they dip into it.
Money Tree is a personal finance tool, not financial advice. This article is general information and doesn't take your circumstances into account.