[Kmymoney] How to handle loans and budgets

Maximilian Schaufler max.schaufler at bytedoc.net
Wed Feb 1 21:23:41 UTC 2012


That is a nice summary, "transfers can't be budgeted right now".
I created a budget-only category as well, let's see how this works out.
For a start I have the expected values in total income and expenses in my
yearly budget now, which allows me to easily plan the holiday trip :)

Thanks so much, Case closed after 24 hours :)

Max

On 1 February 2012 22:13, Cristian Oneț <onet.cristian at gmail.com> wrote:

> 2012/2/1 Maximilian Schaufler <max.schaufler at bytedoc.net>:
> >
> > On 1 February 2012 04:43, Jack <ostroffjh at sbcglobal.net> wrote:
> >>
> >> ...
> >>
> >> If you simply assign a category (rent or apartment or ...) to the
> >> transactions, you can then budget them.  You could even split the
> >> transactions into an interest category and a category for principle.
>  You
> >> can always assign a category to a transaction, even if you are
> transferring
> >> money to another account and not just a payee (which is internally just
> a
> >> different account.)   In fact, you say you have an "apartment project"
> >> category - so you could use this category in a budget.  I'm not sure
> why you
> >> think these transfers do not change any category, and I don't know if
> there
> >> is a problem in translating terms, or there is a misunderstanding of how
> >> KMyMoney works.  This does sound like an area to discuss more, and
> hopefully
> >> find there is really a good solution for you.
> >
> >
> > Ok, I'll try to simplify my description:
> > I have a
> > * regular bank account (A)
> > * liability account, representing my loan account (L)
> >
> > For any payments I make or receive, each transaction in the ledger is
> > assigned a category (or multiple if split transaction is done).
> > My liability/loan account's balance is currently showing the whole open
> > amount of the loan I have from my bank.
> > Every payment I make on that loan (called a principle, as I take it), I
> > enter as a transfer transaction from (A) to (L). In this transfer
> > transaction there is no category, but instead the account to/from which
> the
> > transfer is made.
> >
> > Am I missing the possibility to add a category here as well?
> >
>
> No, you are not missing anything. Actually what you've said until now
> is the correct way to handle loans.
>
> Unfortunately only income/expenses can be budgeted. This means that
> you can budget only the interest+fees part of your loan without the
> principal (the transfer between the asset and liability account).
>
> As a workaround this I have several expense categories marked "(only
> for budgeting)" and I assign the amounts needed for principal payment
> in the budget for these categories but I never actually record a
> transaction in these categories.
>
> I know that it's a hack and can lead to misleading data in some places
> but it's better then nothing and it can give an overview to your
> budget considering the principal payments.
>
> So the main answer to the subject of this thread is "that transfers
> can't be budgeted right now".
>
> Regards,
> Cristian
>
> > Max
> >
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> > KMyMoney at kde.org
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> >
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-- 

DI (FH) Maximilian Schaufler
Tel.: +43 676 9387361
max.schaufler at bytedoc.net
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