diff --git a/workspace/HEARTBEAT.md b/workspace/HEARTBEAT.md
index d85d83d..14d4e7f 100644
--- a/workspace/HEARTBEAT.md
+++ b/workspace/HEARTBEAT.md
@@ -1,5 +1,28 @@
-# HEARTBEAT.md
+# HEARTBEAT.md - Periodic Checks
 
-# Keep this file empty (or with only comments) to skip heartbeat API calls.
+**CRITICAL RULE: Heartbeat tasks ALWAYS use Ollama. NEVER escalate to other models. If Ollama fails, task fails.**
 
-# Add tasks below when you want the agent to check something periodically.
+## Tasks
+
+### File Organization
+- Check workspace for new files that need categorizing
+- Review memory/ directory — any logs that should be consolidated into MEMORY.md?
+- Verify git status — any uncommitted changes?
+
+### System Health
+- Check if budget-tracker.json needs updating
+- Verify cron jobs are still enabled
+- Check for error files or logs
+
+## Alert Triggers
+- Budget spent exceeds 75% ($15)
+- Cron job failed
+- Uncommitted important changes
+- Memory files growing too large
+
+## Otherwise
+Reply HEARTBEAT_OK
+
+---
+
+**Model:** Ollama (llama3.2:latest) ONLY. No escalation.