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Safe Spending: What? Why? How?

Published on November 27, 2016 11:56 pm, by

Safe Spending takes the guess work out of your account balance. As you spend your Safe Spending amount reduces keeping the money that’s needed to meet your commitments set aside.

What your bank says is available and what Safe Spending tell you can be two very different things.  Safe Spending is driven by your budget and account balances and includes your upcoming income and expenses to give you the dollar figure that you can spend without impacting your future commitments. Your mind can rest easy knowing everything will be covered and what you can spend with confidence.

Safe Spending works on the budget for the calendar month while taking into account any upcoming months that your income won’t cover your commitments.

The art (math) of Safe Spending is this:

We start with your credit account balances and available funds in your offset account
ADD your expected income for the rest of the month
DEDUCT your outstanding bills and expenses for the rest of the month
DEDUCT your credit card balances*
DEDUCT any amount that your budget is in deficit in the next 12 months
DEDUCT any amount you want excluded**

= Safe Spending amount

*You can hide your credit cards from Safe Spending if you don’t want them to reduce your Safe Spending amount.

**This gives you flexibility in what you want included and what you don’t. If you want to exclude the balance of a specific account or amount you can do that. This means if you want to keep a buffer of $500 or an emergency fund of $50,000 you can exclude those amounts to make sure they are still there when you need them and don’t show as part of your Safe Spending amount.

Safe Spending is available on desktop, iOS and Android.

Why we love it

  • It tells us what we can spend and still pay our bills
  • It’s easy to set up and helps us save
  • It’s accessible on the go; down at the mall, while online shopping, and at the coffee bar
  • It’s automated – no spreadsheets or manual data input
  • If we are in the green zone we know we are ahead and can move some extra money to our savings account before we spend it – confusing maybe if that account is already in SS? 

How do I get started?
Safe Spending is highly intuitive, with a little help from you. Your Safe Spending will automatically be set and available in your Overview dashboard after you complete your budget set up. Once that’s done it’s the perfect time for you to go in and exclude amounts or accounts that you want to ensure aren’t included in your Safe Spending amount.

Once you’ve confirmed or amended your exclusions you can look at Safe Spending any day to know how much you can spend and still meet all your commitments. It’s also a useful tool to know when you’re ahead, and if you’re so inclined move some extra across to your savings.

When you have spent that day already, and want an up to date Safe Spending amount we recommend that you refresh your accounts, to make sure any earlier transactions are picked up and result in an accurate Safe Spending amount.

Why it works –

  • Instead of checking your bank balance, you check your MoneyBrilliant app, and it shows how much you can spend with your bills already deducted
  • It takes the guesswork out of whether you can spend
  • It helps us spend less, save more and meet our goals!
  • It’s easy to stay on track with no manual inputting of money spent

Jump on and grab the MoneyBrilliant app if you haven’t already.

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Jen is an experienced banking professional who loves wine, coffee, finding a bargain and of course her three beautiful children. Since Jen's first budget led her to buy a home at 20, Jen has passionately helped others to make better decisions with their money.

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