Safe to spend: how much can I spend before payday?
The amount that is safe to spend before payday is the lowest point your checking balance will reach before then, after every bill, minus a cushion you keep. Not the balance today, and not the balance after payday.
A worked example
| Day | What happens | Balance |
|---|---|---|
| Today | Checking balance | $1,800 |
| Day 3 | Rent of $1,200 paid | $600 |
| Day 10 | Paycheck of $1,500 lands | $2,100 |
The lowest point is $600, on day 3. Keep a $200 cushion and the amount that is safe to spend is $600 − $200 = $400.
Why the end-of-period number misleads
After payday the account shows $2,100. Spend from that figure today and rent fails on day 3. A bill must be covered on the day it is due, even if money arrives later.
How Forgenta does it
Forgenta walks every bill and paycheck to find the low point, counts card swipes that have not posted yet, and checks through the end of the month so a bill after payday is covered too.
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Frequently asked questions
How do I calculate how much I can spend before payday?
Find the lowest your checking balance will reach before payday after every bill, then subtract a cushion. In the example, $1,800 less $1,200 rent is a $600 low point; less a $200 cushion, $400 is safe to spend.
Why not use my balance after payday?
Because bills due before payday need the money first. An account that ends the period positive can still go negative on the day rent is due.
Does it count pending card charges?
Yes. Forgenta subtracts card swipes on checking that your bank has not posted yet.