If you’re wondering how to start and maintain a cash-flow plan or budget, I’m here to help. Maybe you’ve never budgeted before or it’s been a while since you had a working cash-flow plan. So where do you start, and what’s the best budgeting app to use? 

I’ve tried and reviewed so many budgeting tools and apps. Some examples? Everything from Google Sheets, Numbers, and Excel spreadsheets to apps like YNAB, Tiller, Mint, Rocket Money, QuickBooks, Quicken, Copilot, and more. And I’ve found one that works especially well not only for me personally but also for many of our clients (even those who don’t enjoy budgeting): Monarch Money.

The big reason why I like it is because it’s so easy to get started. Plus, we sponsor client accounts as part of our Implementation Credit Policy. That means you don’t pay the full price of $14.99 per month or $99.99 per year. You don’t have to worry about a discount code for the 30% off your first year welcome discount that Monarch offers publicly. You don’t even need the special 50% off link that FPFoCo offers folks (although you can pass it along to friends and family here!). 

Maybe you’re an FPFoCo client looking for an overview of what using the Monarch app will look like. Or perhaps you snagged that handy FPFoCo link above for 50% off your first year and are looking to get started. You could even be a long-time Monarch user who wants to streamline your use of Monarch so it “plugs into” your RightCapital for a more seamless experience. Whatever the case, allow me to walk you through how to start or enhance your use of Monarch, whether it’s simply your cash-flow tracker or your true budgeting tool.

Start Here: How to Use Monarch Money

Log In

So you got your exclusive FPFoCo-sponsored link. Nice! Use it to log in as opposed to sign up, and be sure to set a password. If you log in via Apple or Google single sign-on (SSO), Monarch won’t recognize our sponsorship, and it’ll ask you to pay. If it asks you to enter your payment information, take a step back or try that link again. When you see that your total is $0 because of our sponsorship, you’ve gotten to the right place! You can finish logging in … and pause there.

Email Me!

Before you do the things that Monarch encourages you to do next, like add an account, customize categories, create a goal, or create a budget, simply STOP and let me know that you’ve logged in. That’s where I come in! I’ll go in and set your categories up for you before your transactions import and land in the wrong places. Please allow me to make it easy for you!

This allows me the opportunity to make Monarch work nicely with your RightCapital. You’ve probably seen your “Pre-retirement Living Expenses” or “Monthly Retirement Expense” in your RightCapital and thought, “I spend way more than that!” And that’s because you probably do! RightCapital separates out some of your expenses. For example, your housing, auto, loan, and insurance expenses “live” in an area of your RightCapital separate from your other expenses. RightCapital also separates out your Goals from your living expenses. So I do the same in your Monarch!

In fact, you won’t even use Monarch’s built-in Goals tab. Why? Because you’ve already set those up in RightCapital! We’ll keep things simple so you’re not doing twice the work. Once I’ve adjusted your groups into “Living Expenses,” “Goals,” and “Housing, Auto, Loans, and Insurance” (or a similar name, based on what’s part of your plan), I’ll turn it back over to you.

Link Your Accounts

After you receive my confirmation email that you’re all set, your next step is to link your accounts. Before doing so, you may choose to download the Monarch app in your App Store or Google Play if you haven’t already. It’s very user-friendly and how I prefer to do my own Monarch-ing. Head to the “Accounts” tab in Monarch. If you’re using the app, click the little “+” sign at the top right. On the desktop version, it’s an orange “+ Add account” button.

What type of accounts should you add? Your bank accounts, credit cards, and loan accounts, like your mortgage, HELOC, and auto note, are a great start. While you could add your investment accounts and use Monarch as another location to track your net worth, they’re likely already linked to your RightCapital. One neat feature in Monarch is the ability to track your home and auto value, so you might choose to link those, too.

Categorize Your Transactions

You’ll start using Monarch’s pre-set categories, which may or may not work well for you. You can add new categories to better suit your life and get rid of those you don’t need at any time. So don’t worry if the premade categories don’t work for you at first.

To see what categories Monarch pre-populated for you, head to your “Transactions” tab. Monarch will automatically assign most of your purchases to its standard categories. When you notice that one isn’t right, click or tap it to make an adjustment. You don’t have to categorize back to the beginning of time. Making sure that your transactions are properly categorized for the month so far, or even the few previous months, is plenty. Of course, if you’re feeling enthusiastic, you can go as far back as you’d like!

Need to add a new category? Click or tap your name, then Settings. You’ll see Categories on the next screen. Feel free to customize the categories in your Income group and your Living Expenses group. I like to keep it simple, so I just use one Income category for any income that doens’t offset a purchase (like a purchase that I later return for a refund). I also like to group my Living Expenses categories together to keep the list short. You can check out a few of my top spending categories in my blog, The Easy Way to Be a Cash-Flow Pro. (No judgment, please!)

Cash-Flow Tracking with Monarch Money

Now you’re onto the easy part! With setup complete, categorizing your transactions is the step that you’ll take every few days or at least once a week. It’s super easy and will become very familiar!

Categorizing your transactions appropriately allows me to view your cash flow. You can see this in the “Cash Flow” tab of Monarch, where you can also break it down by month, quarter, or year. With everything categorized appropriately (thank you!), I can enter accurate average spending into your RightCapital to enhance the accuracy of your financial plan.

If your probability of success in your RightCapital is strong, there’s no need for you to budget (unless you want to, of course!). You can simply track your cash flow with Monarch. Simple, huh?

Budgeting with Monarch Money

Let’s say your probability of success isn’t quite where we’d like it to be. Knock, knock! Who’s there? It’s opportunity.

With your transaction history readily available, Monarch has what it needs to create a budget based on your average spending data. Know you need to decrease spending, based on your probability of success in RightCapital? In the Budget tab, you can go through your categories and set goals to do just that.

Now you’re using Monarch as a budgeting tool!

Maybe you have some recurring expenses that you can trim, like subscriptions you don’t use enough to justify continuing to pay for them. Pause or cancel them, and reduce your budget for their categories accordingly. If that gets you to where you need to be spending-wise, you’re all set! Simply review your total living expenses budget and how much is left for the month when you go into Monarch to categorize your transactions. If you’re cutting it close, see what you might be able to trim for the remainder of the month as you make informed purchasing decisions.

Still need to trim? Choose a couple of flexible spending categories to focus on. Maybe your spending Achilles heel is dining out or making purchases from a specific retailer. Set goals to reduce spending in these categories, then check on them after categorizing your transactions. There’s no need to review your spending in every single category every time you open your Monarch app. Just check on these few to make it easy.

And there you have it! Simplify your cash-flow tracking and, if you need it, budgeting with FPFoCo and Monarch. Want a hand setting up your account? Schedule a cash-flow planning consultation. Have a few questions or want to add or delete categories in your Living Expenses group? Grab 15 or 30 minutes on my calendar, and we’ll do it together. Ready to see where your spending in Monarch puts your probability of success in RightCapital? Send me an email, and I’ll plug it in, then follow up with any recommendations. Already have a Monarch account that you were paying for? I’ll send you a link to bring yours under FPFoCo’s sponsorship, then set it up to align with your RightCapital.

Let us make cash-flow planning and budgeting easy for you!