Envelope supports two types of funding

• Fixed amounts ($500 on the 1st of every month to Groceries)

• Auto-amounts (I don't care how much you pull, just make sure I have $3K in Rent by the 1st of every month)

How auto-amount funding works

Before you can turn on auto-amount funding for an envelope, the envelope needs a budget.

For example, if your Rent envelope has a budget of $3,000 on the 1st of every month, auto-amount funding will work to make sure you have the full $3,000 set aside by the time rent is due.

Why does auto-amount funding disable envelope caps?

Envelope caps are disabled when auto-amount funding is turned on. Caps only work with manual funding amounts.

This is because auto-amount funding may need to set aside more than a cap would allow in order to keep your budget on track.

For example, if Envelope sees that your March paycheck will not be enough to cover March rent, it may set aside extra money from your February paycheck so rent is fully funded on time.

Another example: if your Dining Out envelope has a budget of $100/week, but you are paid monthly, Envelope would set aside all four weeks of dining money from one paycheck.

Caps would prevent Envelope from doing this correctly, which is why they are disabled when auto-amount funding is turned on.

How does Envelope know how often I'm paid?

Envelope uses your transaction history to predict when future paychecks will arrive.

If you haven't been paid yet, your first paycheck just goes (in order) through all your budgets that are due in the first 30 days and attempts to max each until it runs out of funds or until it fills all the budgets. It basically starts out very conservative and then spreads out more evenly once your 2nd paycheck comes in and it learns how often you're paid.