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I requested a change to one of my existing budgets or IOs. Why is my new starting amount different from the one I requested?

The difference between the budget amount you request and your new starting budget reflects any funds already spent on the day you request the change.

Any time you instruct us to change a budget, we actually terminate the old budget and create a new one. This change is applied retroactively from 00:00am on the day you request the change. As a result, any amount already spent that day is allocated to the new budget instead of your existing I/O. This allocation happens automatically, so your new budget may have a higher starting amount than the one you requested.

Example use cases:

1. You request a €1,000 reduction to a capped budgets

  • The remaining amount of your capped budget is €7,500
  • Your Account Strategist will close your current capped budget and create a new one using the remaining amount, reduced by €1,000
  • Since 00:00 on the day you made the request, you had already spent €300
  • Your new starting budget will reflect the amount

New starting budget = €7,500 - €1,000 + €300 = €6,800 (available budget = €6,500)

2. You request a new budget end date

  • The remaining amount of your budget is €7,500
  • Your Account Strategist will close your current budget and create a new one with a new end date using the remaining amount of €7,500
  • On the day you made the request, you had already spent €300

New starting budget = €7,500 + €300 = €7,800 (available budget = €7,500)

3. You request an I/O transfer between existing budgets

  • You want to transfer an I/O with €7,500 remaining from budget A to budget B
  • Your Account Strategist will close the I/O in budget A and open a new €7,500 I/O under budget B
  • On the day you made the request, you had already spent €300

Your new I/O in budget B will have a starting budget of €7,500 + €300 = €7,800 (available budget = €7,500)

4. You want to reduce your monthly recurring budget by €1,000

  • The remaining amount of your monthly recurring budget is €7,500
  • Your Account Strategist will close your current recurring budget and create a temporary capped budget one for the current month using the remaining amount, reduced by €1,000
  • On the day you made the request, you had already spent €300.

Your new capped budget for the current month will have a starting budget of €7,500 - €1,000 + €300 = €6,800 (available budget = €6,500). 

Your Account Strategist will also create a new recurring monthly budget using the reduced amount; it will take effect the following month.

5. You want to terminate a monthly budget

  • The remaining amount of your monthly budget is €7,500
  • On the day you made the request, you had already spent €300.
  • Your Account Strategist will create a new €300 capped budget for the same day

 

For questions about budgets and I/Os, please contact your Account Strategist any time. 

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