> ## Documentation Index
> Fetch the complete documentation index at: https://bowbudget.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# How envelope budgeting works in Bow

> How envelope budgeting works in Bow: give your money to envelopes before you spend it, spend from them, and move money when plans change.

Bow is an envelope budget. You decide what your money is for before you spend it, and Bow keeps track of what's left for each purpose. It's the cash-in-envelopes method, without the cash.

## The three parts

> **Accounts**
>
> Hold your real money: checking, savings, cash and credit cards. Their balances should match your bank.

> **Envelopes**
>
> What your money is for, like Rent, Groceries or Vacation. Each has an **Available** amount: what's left to spend.

> **Ready to Assign**
>
> Money in your accounts that isn't in an envelope yet. While there's money to assign, it shows in the bar above the tabs.

## The routine

**1. Money comes in**

Your paycheck lands in Ready to Assign.

**2. You assign it**

Move it into envelopes until Ready to Assign reaches zero. **Fund All Needs** fills every envelope's target in one tap.

**3. You spend from envelopes**

Log each purchase with the **+** button. It comes out of the envelope you choose.

**4. You adjust**

If an envelope runs out, it turns red. Move money in from another one.

Money you don't spend stays in its envelope and carries over to next month.

> [!TIP]
>
> New to envelope budgeting? The [Glossary](https://bowbudget.com/docs/glossary.md) explains every word Bow uses on screen.


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.