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Essential & PremiumWhat Are Category Targets?
Category targets are a powerful feature that helps you plan ahead for irregular expenses and automate your monthly budgeting. Instead of manually deciding how much to allocate to each category every month, you can set targets that define your funding goals, and let Purpose Budget help you stay on track.
Think of targets as your budgeting autopilot. Set your goals once - like saving $200/month for car insurance or $100/week for groceries - and Purpose Budget calculates exactly how much you need to allocate each month. You can even use Auto-Assign to automatically fund all your target categories with one click!
Why Use Category Targets?
- Smooth out irregular expenses: Break down large annual bills into manageable monthly amounts
- Automate budgeting: Use with Auto-Assign to automatically allocate funds based on your priorities
- Prevent surprises: Plan ahead for upcoming expenses so you're never caught off guard
- Track progress: See at a glance whether your categories are funded according to plan
Understanding the Three Target Types
1. Monthly Funding Target
Best for: Regular monthly expenses with predictable amounts
You specify an amount you want to allocate to this category every month. Purpose Budget shows whether you've met your target for the current month.
Examples:
- Monthly car insurance: $150/month
- Phone bill: $75/month
- Gym membership: $50/month
- Savings contribution: $200/month
Example Scenario:
Your phone bill is $75 every month. Create a Monthly Funding target of $75 for your "Phone" category. Each month, Purpose Budget reminds you to allocate $75, and you can use the Quick Assign button to fund it instantly.
2. Weekly Funding Target
Best for: Weekly recurring expenses
You specify a weekly amount, and Purpose Budget automatically calculates the monthly equivalent (weekly amount × 52 weeks ÷ 12 months ≈ weekly amount × 4.33).
Examples:
- Weekly groceries: $100/week = ~$433/month
- Weekly gas for commute: $40/week = ~$173/month
- Weekly allowance: $25/week = ~$108/month
Why Weekly Targets Are Useful:
Some expenses just make more sense when you think about them weekly. The multiplier (×4.33) ensures you budget enough for months with 5 weeks, so you never run short at the end of a long month!
3. Needed by Date Target
Best for: One-time expenses, annual bills, or savings goals with deadlines
You specify a target amount and a target date. Purpose Budget calculates how much you need to allocate each month to reach your goal by the deadline.
Examples:
- Annual car insurance: $1,200 due in 6 months = $200/month
- Holiday shopping: $800 needed by December = $100/month (starting in April)
- Vacation fund: $2,400 for trip in 8 months = $300/month
- Property tax: $3,000 due quarterly
Pro Tip: The earlier you start saving for a deadline, the smaller the monthly amount! Save $1,200 over 12 months = $100/month, but save it over 6 months = $200/month. Start your targets early!
Creating Your First Target
Let's walk through creating a target for a common scenario: annual car insurance.
Step-by-Step: Annual Car Insurance Target
Scenario: You have annual car insurance of $1,200 due in 6 months
- 1. Navigate to Budget: Click "Budget" in the sidebar and view the current month
- 2. Find Your Category: Locate your "Car Insurance" category (or create one)
- 3. Click Target Icon: Click the target icon (🎯) next to the category name
- 4. Choose Target Type: Select "Needed by Date"
- 5. Fill in Details:
- • Target Amount: $1,200.00
- • Target Date: June 1, 2025 (or your due date)
- • Priority: High (2) - helps with Auto-Assign
- 6. Create Target: Click "Create Target" and see the confirmation
- 7. Verify: Budget shows you need ~$200/month for the next 6 months
Working with Auto-Assign
Targets become even more powerful when combined with Auto-Assign, Purpose Budget's intelligent fund allocation feature. Auto-Assign uses your targets to automatically distribute available funds across categories based on priority and urgency.
How Auto-Assign Works with Targets
- Targets Required: Auto-Assign only works with categories that have targets set
- Priority-Based: Categories are funded based on priority level (0-3) and other scoring factors
- Intelligent Scoring: The system considers user priority, target urgency, underfunding, and special conditions
Auto-Assign Priority Levels:
- Critical (3): Essentials like rent, insurance, minimum debt payments
- High (2): Important bills and necessary expenses
- Medium (1): Regular spending and savings goals
- Low (0): Nice-to-haves and flexible spending
Using Auto-Assign
- Set targets on your categories - Focus on important categories first, set appropriate priorities
- Have funds in Ready to Assign - After income is added, funds go here
- Run Auto-Assign - Click "Auto-Assign" button, choose Preview or Execute
- Review allocation - See how funds were distributed based on priorities
- Make adjustments - Manually adjust any categories after auto-assign if needed
Common Scenarios & Tips
Scenario: Building an Emergency Fund
You want to build a $6,000 emergency fund over the next year, saving $500/month.
- Create an "Emergency Fund" category in your Savings group
- Set aMonthly Funding target: $500/month, Priority: High (2)
- Each month, allocate $500 - the money accumulates in the category's Available amount
- Don't spend from this category unless it's a true emergency
Scenario: Weekly Groceries
You spend about $100 per week on groceries and want to budget accordingly.
- Create a "Groceries" category
- Set aWeekly Funding target: $100/week, Priority: Critical (3)
- Purpose Budget calculates ~$433/month automatically
- Use Auto-Assign or Quick Assign to allocate the monthly amount
Pro Tip for Weekly Targets: The multiplier accounts for months with 5 weeks, so you won't run short at the end of longer months. If you're spending more or less than expected, track for a month or two and then adjust the weekly amount.
Best Practices
Getting Started
- Start with important categories: Don't set targets on everything at once - begin with bills and irregular expenses
- Use monthly funding for consistent bills: Phone, internet, subscriptions
- Use needed-by-date for irregular expenses: Annual bills, repairs, holidays, gifts
- Set priorities thoughtfully: Not everything can be "Critical" - be realistic
Maintaining Targets
- Review monthly: Adjust targets based on actual spending patterns
- Update when bills change: Price increases, service changes
- Delete completed targets: One-time expenses after they're done
- Start early for deadlines: The more months you have, the smaller the monthly amount
Common Mistakes to Avoid
- ❌Setting targets too low: If it doesn't match reality, you'll constantly overspend
- ❌Not adjusting based on reality: Track for 1-2 months then update estimates
- ❌Ignoring priority levels: Priority matters for Auto-Assign - set them thoughtfully
- ❌Forgetting to update needed-by-date targets: Annual bills need dates updated each year
- ❌Making it too complicated: Start simple, add detail only when it helps
Frequently Asked Questions
Q: Do I need targets on every category?
No! Targets are most useful for bills, irregular expenses, and savings goals. Daily flexible spending categories (like dining out, entertainment) often don't need targets.
Q: Can I change a target type after creating it?
Yes, you can edit the target and change the type at any time. Your budgeted amounts remain unchanged.
Q: What happens if I don't meet my target?
Nothing punitive! The target shows you're underfunded, but you can still spend from the category. Adjust your allocation or target as needed - targets are guides, not restrictions.
Q: How do I use targets without Auto-Assign?
Targets work fine without Auto-Assign. They show you how much to allocate manually, and you can use Quick Assign to fund each category to its target amount with one click.
Ready to Master Category Targets?
Start using category targets today to automate your budgeting and plan ahead for every expense. Combined with Auto-Assign, you can set up your entire monthly budget with just a few clicks!