Underfunded vs overspent
Two different problems that look similar in the budget. Same fix is rarely the right fix.
Both states show up as a warning on the Budget page. They mean different things and ask for different responses.
Underfunded
A category is underfunded when its goal needs more assigned this month than you've given it, but Available is still zero or positive. You haven't overspent — you just haven't promised the goal as much as it asked for.
Example: Car insurance has a goal of $120/month and you've assigned $80. Available is $80. The category shows an amber Underfunded by $40 indicator. Nothing has gone wrong yet; the goal will fall short if you don't catch up.
The fix: assign the missing dollars now, or accept that the goal is being deferred and edit the goal target so it stops complaining.
Overspent (cash)
A cash category (one that doesn't sit behind a credit card) is overspent when Activity plus carry-in plus assigned goes negative. You spent money that wasn't there.
Example: Dining out had $50 available. You spent $73 on debit. Available is now -$23 and the row turns red.
The fix: move $23 in from another category. Click the available cell, pick Move money from…, choose a category with surplus, confirm. The red disappears.
If you don't move money, the deficit silently reduces next month's Ready to Assign by $23 when the month rolls over. The category's Carry-over resets to zero — you don't keep digging a deeper hole. See Carry-over rules.
Overspent (credit card)
Credit-card overspending is a different animal. When you spend $73 on a card but only $50 was assigned, the Dining out category goes red the same way — but the Credit Card Payment category for the card still earmarks the full $73 owed. The bill is funded; the budget is just telling you you spent more on dining than planned.
The fix: same as cash — move $23 from another category into Dining out. The Available there returns to zero. The payment category doesn't change.
If you don't move money, the same thing happens at month-end: next month's Ready to Assign drops by $23. The card still gets paid; you just take the dent in next month's starting position.
How to spot the difference quickly
| Indicator color | Meaning |
|---|---|
| Amber | Underfunded — goal wants more, nothing spent yet |
| Red | Overspent — Available is negative |
| Gray | Funded to zero, no goal in play |
| Green | Funded |
When in doubt, hover the indicator; the tooltip names the exact state.
A common mistake
Treating underfunded categories like overspending. They're not. Moving money from elsewhere "to cover" a goal that hasn't been spent is fine, but it's optional — you may simply not want to fund that goal this month. Overspending in a cash category is more urgent because the dollars have already left the account.