What is the cushion?
A measure of your financial breathing room
The Simple Answer
Your cushion measures how many weeks your unallocated money (the reservoir) can cover your regular expenses and spending. It's expressed in weeks - for example, "You have a 3-week cushion" means your reservoir can cover 3 weeks of typical expenses.
How the cushion is calculated
The cushion calculation is straightforward: it divides your reservoir balance by your weekly spending to see how many weeks it would last.
Cushion Formula
What goes into the calculation
🏊 Reservoir Balance
The money you have that isn't already allocated to specific budget categories. This is your financial buffer.
📊 Weekly Expenses
Your recurring expenses (rent, insurance, subscriptions, etc.) converted to a weekly amount, regardless of their actual frequency.
💸 Spendable
Money allocated for discretionary spending during the current budget cycle.
⏱️ Days Left in Cycle
The calculation also accounts for time remaining in your current budget cycle.
Why the cushion matters
Your cushion gives you a quick sense of your financial stability:
Great financial position with plenty of breathing room for unexpected expenses.
Decent buffer, but consider building it up for more security.
Consider increasing your reservoir to build a larger cushion.
💡 Pro tip
The cushion isn't just about emergency preparedness - it's about giving yourself permission to spend confidently. When you have a healthy cushion, you can make purchases without constantly worrying about your financial stability.
⚖️ Disclaimer
The information provided on this page is for educational purposes only and does not constitute professional financial advice. Cushion Budget is a budgeting tool, and we are not licensed financial advisors. Always consult with a qualified financial professional for advice specific to your financial situation. Your use of our app and any financial decisions you make are your responsibility.