Being able to allocate your income to Next Month is a privilege not afforded to many. Living entirely on income from the previous month is also a difficult accomplishment for many.

However being a month ahead of your bills will provide great peace of mind, so we highly recommend it!

When You Sign Up

When you add your very first account to Vermillion, you should include an initial balance. You may need to go back and edit this if it was automatically created with a $0 balance.

The initial balance will be immediately available for budgeting. If you can cover all of your spending with this balance, then you can budget any additional income to Next Month.

Saving Up As You Go

However, if your balance does not cover all of your spending then you will need to save up over time. Here are two different ways you might do this:

1. Overfund your budget categories little by little until one month you find that you don’t need this month’s income to cover them.
2. Create a “buffer” or “next month fund” category to dump any excess money into.
   1. When this category has a balance greater than one month’s expenses, you can budget a negative amount for the whole balance. This will release the money back into your budget.