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

# Understand budgets and savings goals

> Decide when to use a Miyo monthly budget, a recurring category target, or a long-term savings goal to plan spending and track savings progress.

Miyo separates your monthly spending plan from the savings finish lines you want to reach. Both appear in **Budget**, but they track different kinds of progress.

<Columns cols={2}>
  <Card title="Monthly budget" icon="calendar-range" href="/budgets/create-and-manage-budget" cta="Manage a budget" arrow="true">
    Plan how much to assign to spending categories for a selected month, then compare those amounts with categorized transactions.
  </Card>

  <Card title="Savings goals" icon="target" href="/goals/create-savings-goal" cta="Create a savings goal" arrow="true">
    Track how much you have saved toward one total finish line. Progress carries forward until you reach the target.
  </Card>
</Columns>

## Choose by the question you are asking

| If you want to know\...                                              | Use                                 |
| -------------------------------------------------------------------- | ----------------------------------- |
| How much can I still spend in this category this month?              | **Monthly budget**                  |
| How much should I assign or keep available for a recurring category? | **Budget category target**          |
| How close am I to saving one total amount?                           | **Savings goal**                    |
| How much do I need to save each month to reach a date?               | **Savings goal with a target date** |

<Info>
  A budget amount and an account balance are not the same thing. Planning or recording progress in Miyo does not transfer money between bank accounts.
</Info>

## See the difference with one example

Suppose you want to take a **\$10,000 vacation**:

* Create a **savings goal** when the question is, "How much of the $10,000 have I saved?" A $200 contribution produces $200 of $10,000 in progress.
* Create a **Travel budget category** when the question is, "How much can I spend on travel this month?"
* Add a **category target** when the question is, "How much should I assign to Travel each month, or how much should remain available?"

The same purpose can appear in more than one planning tool because each tool answers a different question. Avoid recording the same money twice when reviewing your overall plan.

## Continue with the right setup

<Columns cols={2}>
  <Card title="Choose a budget mode" icon="gauge" href="/budgets/choose-budget-mode">
    Compare Simple monthly limits with Advanced rollover envelopes.
  </Card>

  <Card title="Set a category target" icon="repeat-2" href="/budgets/category-targets">
    Learn when to add another amount or refill what remains available.
  </Card>
</Columns>