Budgeting with Meridian

Meridian uses a zero-based budgeting approach inspired by the envelope method. This guide explains how to make the most of Meridian's budgeting features.

The Envelope Method

Traditional budgeting with envelopes works like this: you cash your paycheck and divide the money into labeled envelopes - one for rent, one for groceries, one for entertainment, and so on. When an envelope is empty, you stop spending in that category.

Meridian brings this concept into the digital age. Your categories are your envelopes, and you assign every dollar a job before you spend it.

Understanding the Course View

The Course screen is where you manage your budget. It shows:

On Deck (To Be Assigned)

At the top of the Course view, you will see your "On Deck" balance. This represents money in your on-budget accounts that has not yet been assigned to any category.

The goal is to get this to zero by assigning every dollar to a category.

If On Deck shows:

• Positive amount - You have money waiting to be assigned
• Zero - All money has been assigned (the ideal state)
• Negative amount - You have over-assigned and need to adjust

Month Navigation

Use the arrow buttons to move between months. Your budget is month-based, so you can:

• Plan future months in advance
• Review past months for reference
• See how your spending has evolved

Categories and Category Groups

Category Groups

Category groups help organize your budget into logical sections. Common groups include:

• Fixed Expenses - Rent, utilities, insurance
• Everyday Spending - Groceries, gas, household items
• Lifestyle - Dining out, entertainment, subscriptions
• Savings Goals - Emergency fund, vacation, big purchases

Categories

Categories are the specific line items within each group. For example, under "Fixed Expenses" you might have:

• Rent
• Electric
• Internet
• Car Insurance

Creating Category Groups

1. Click + Add Category Group on the Course screen
2. Enter a name for the group
3. Click Add

Adding Categories

1. Hover over a category group
2. Click the + button that appears
3. Enter the category name
4. Click Add

Managing Categories

Click on any category name to edit it inline. While editing:

• Type a new name to rename
• Press Enter to save
• Press Escape to cancel
• Click the delete button to remove (requires confirmation)

Organizing with Drag and Drop

You can reorganize your budget by dragging:

• Drag categories within a group to reorder them
• Drag category groups to reorder sections
• Drag categories between groups to move them

Collapsing Groups

Click the arrow next to any group name to collapse it. This is useful for:

• Reducing visual clutter
• Focusing on specific areas of your budget
• Hiding groups you do not need to see often

Use the collapse/expand button in the header to collapse or expand all groups at once.

Assigning Money to Categories

Basic Assignment

1. Find the category you want to fund
2. Click on the Assigned column
3. Enter the amount you want to assign
4. Press Enter or click away to save

Math Expressions

Meridian supports math expressions for quick adjustments:

For example, if a category has $400 assigned:

• Typing +100 changes it to $500
• Typing -50 changes it to $350
• Typing *2 changes it to $800

The Zero-Based Flow

When you assign money to a category:

1. The On Deck balance decreases by that amount
2. The category's Assigned amount increases
3. The category's Available balance updates accordingly

This ensures every dollar is accounted for.

Category Balance Columns

Each category shows three important numbers:

Assigned

How much you have budgeted for this category in the current month. This is the amount you are planning to spend.

Activity

The sum of all transactions in this category for the current month:

• Spending shows as negative (money leaving)
• Income/refunds show as positive (money returning)

Available

What remains after accounting for activity:

Available = Assigned + Activity + Rollover from prior months

Positive balances from previous months carry forward. Negative balances from past months reset to zero (so overspending does not carry forward indefinitely).

For example:

• Last month you had $40 left over in Groceries (rollover: $40)
• You assign $400 this month (Assigned: $400)
• You spend $150 on groceries (Activity: -$150)
• You have $290 available to spend (Available: $40 + $400 - $150 = $290)

Handling Overspending

When you spend more than you have available in a category, the Available amount goes negative. This is overspending, and it needs to be addressed.

How to Fix Overspending

Option 1: Move money from another category

1. Find a category with money to spare
2. Reduce its Assigned amount
3. Increase the overspent category's Assigned amount

Option 2: Assign more from On Deck If you have unassigned money, add it to the overspent category.

Option 3: Wait for next month Overspending is covered by the following month's assignment, but this means you are effectively borrowing from future funds.

Overspending Indicators

Categories with negative Available balances are highlighted to draw your attention. Address these before they affect other areas of your budget.

Monthly Rollovers

In Meridian, category balances carry forward from month to month:

Positive Rollover

If you budget $100 for Dining Out but only spend $60, the remaining $40 rolls into next month. Your new month starts with $40 available before you assign anything new.

This is great for:

• Building up savings categories over time
• Flexible categories where spending varies
• Accumulating funds for irregular expenses

Negative Rollover

If you overspend a category, that negative balance carries forward. You will need to cover it in the next month before you can truly spend in that category again.

Telescope Mode

Telescope Mode is a Meridian feature that helps you see further into the future with your recurring transactions.

What is Telescope Mode?

When you create recurring transactions (like rent, subscriptions, or paychecks), Meridian can show you multiple future instances of those transactions in your ledger. This helps you:

• See upcoming bills before they are due
• Plan your budget around known future expenses
• Understand your cash flow weeks or months ahead

How It Works

With Telescope Mode enabled:

• Shows up to 90 days of future scheduled transactions
• Displays up to 12 instances of each recurring transaction
• Gives you a comprehensive view of upcoming expenses and income

With Telescope Mode disabled (default):

• Shows only the next instance of each recurring transaction
• Simpler view, similar to other budgeting apps like YNAB
• Less visual clutter in the scheduled section

Enabling or Disabling Telescope Mode

1. Go to Settings (gear icon in the navigation)
2. Find the Recurring Transactions section
3. Toggle Telescope Mode on or off

When to Use Each Mode

Use Telescope Mode when:

• You want to see your full financial picture for the next few months
• You are planning for upcoming expenses
• You want to ensure you have funds ready for bills before they are due

Disable Telescope Mode when:

• You prefer a simpler, less cluttered view
• You only need to focus on immediate upcoming transactions
• You find the extended view overwhelming

Cleaning Up Scheduled Transactions

If you have been using Telescope Mode and decide to disable it, you may have many future-dated scheduled transactions. Meridian automatically attempts to clean these up when you disable Telescope Mode, keeping only transactions within the next 14 days. You will see a notification confirming how many transactions were removed.

You can also manually trigger this cleanup in Settings under the Maintenance section by clicking "Clean Up" next to "Clean Up Scheduled Transactions."

Credit Card Handling

Meridian uses a YNAB-style approach to credit card budgeting. This can feel unfamiliar at first, but it ensures your budget always reflects reality.

How It Works

When you add a credit card account, Meridian automatically creates a payment category for that card. This category tracks how much money you have set aside to pay the card.

When you spend on a credit card from a budgeted category:

1. The money comes out of your spending category (e.g., Groceries: -$50)
2. That same money automatically moves to the credit card payment category (+$50)
3. Your credit card balance increases by $50

The net effect: the money is still accounted for — it has moved from a spending envelope to a "ready to pay the card" envelope.

Making a Payment

When you pay your credit card (transfer from checking to credit card), it reduces both:

• Your checking balance
• Your credit card payment category balance

If you always pay the full amount in the payment category, you are paying off all budgeted spending. No surprises.

The Cover Button

If your credit card payment category shows a shortfall (you spent more on the card than you had budgeted), the Cover button appears. Clicking it moves money from On Deck or other categories to cover the difference, ensuring you can pay the card in full.

Overspending on Credit Cards

Overspending on a credit card is different from overspending with cash:

• With cash, the money is gone immediately
• With a credit card, you are carrying debt — the overspent amount sits as a balance you need to address

Meridian highlights credit card overspending so you can move money to cover it before the bill arrives.

Budget Strategy Tips

1. Prioritize Your Categories

When you receive income, assign in order of priority:

1. Immediate obligations (rent, utilities, debt payments)
2. True expenses (insurance premiums, subscriptions)
3. Everyday needs (groceries, transportation)
4. Financial goals (savings, debt payoff)
5. Quality of life (entertainment, dining)

2. Age Your Money

Try to get ahead by one month. Instead of budgeting this month's paycheck for this month's bills, budget it for next month. This creates a buffer against irregular income or unexpected expenses.

3. Embrace True Expenses

Large irregular expenses (car insurance every 6 months, annual subscriptions, holiday gifts) are easier to handle when you save monthly. If car insurance is $600 every 6 months, assign $100 per month to build up the funds.

4. Build an Emergency Fund

Create a category for unexpected expenses. Even a small buffer helps you avoid using credit cards for surprises.

5. Review and Adjust

Your budget is a living document. Review it weekly or when major changes happen:

• Income changes
• New recurring expenses
• Shifting priorities

Common Budgeting Questions

"Where should this transaction be categorized?"

If a transaction does not fit neatly into one category, consider:

• Creating a new category for that type of expense
• Using a general category like "Miscellaneous"
• Splitting the transaction if it serves multiple purposes

"I overspent - what now?"

Do not panic. Move money from categories that can spare it, or accept that you will need to reduce spending elsewhere. The important thing is to acknowledge it and adapt.

"How do I handle reimbursements?"

If you will be reimbursed (like business expenses), you can:

• Create a "Reimbursements" category
• Add the expense there
• When reimbursed, the income goes back to that category
• Net effect is zero

"What about income categories?"

Meridian handles income automatically. When you receive a paycheck or any income, it goes to On Deck, ready to be assigned to categories.

"How often should I assign money?"

Many people assign after each paycheck. If you are paid twice monthly, you might:

1. First paycheck: Cover the first half of the month's bills
2. Second paycheck: Cover the second half and build savings

Find a rhythm that works for your pay schedule.

Next Steps

Now that you understand Meridian's budgeting approach:

1. Set up your category groups based on your spending patterns
2. Add categories for each type of expense you have
3. Assign your current On Deck balance to categories
4. Start tracking your spending and adjusting as needed
5. If you have debts, check out Arsenal: Debt Payoff for strategic payoff planning

The more consistently you use Meridian, the clearer your financial picture becomes. Happy budgeting!