Best practice: Budgeting with savings / part of income.

[hugo borrell]

Hello,

2017-10-10 1:58 GMT+02:00 Peter J. Farley III <pjfarley3 at earthlink.net>:

>
> I set up categories that allow for such transfers between checking and
> savings for each separate savings account I may have


This is how to do if you don't want your saving account to appear on this
file of KMM, which can happen for some reason.

However, generaly for a personal finance management, I would recommand to
create a saving account in the same file. That way, you can select this
account in the "category" list when you are selecting the type of expense
you make : this won't be a category, just an internal transfer from one
account to the other : one will be credited while the other will be debited.

Hugo



2017-10-10 1:58 GMT+02:00 Peter J. Farley III <pjfarley3 at earthlink.net>:

> Tobias,
>
> I assume here that you are getting your income in one electronic "direct
> deposit" to your checking account rather than as cash-in-hand to be
> manually deposited at the bank or ATM to different accounts.
>
> Saving a portion of your "direct deposit" income is actually an expense on
> the checking account side and an income on the savings account side.  When
> you transfer savings back to checking to fund a special expense or bill,
> the transfer is an expense to the savings account and an income to the
> checking account.
>
> I set up categories that allow for such transfers between checking and
> savings for each separate savings account I may have:
>
> Income:
>
> Transfer In from Savings #1
> Transfer In from Savings #2
> Transfer In from Checking
>
> Expense:
>
> Transfer Out to Savings #1
> Transfer Out to Savings #2
> Transfer Out to Checking
>
> When I am saving the money from my income I use the "Transfer Out to
> Savings #1" (or #2, etc.) expense category in the checking account "check"
> line and in the Savings account I use the Income category "Transfer In from
> Checking" for the "deposit" line.
>
> When I move saved money back to Checking to pay bills I use the expense
> category "Transfer Out to Checking" in the Savings account line and the
> income category "Transfer In from Savings #1" for the checking account
> "deposit" line.
>
> This scheme can be expanded to multiple checking accounts if you have
> them, or you can simplify to just four categories and not bother to
> identify which "savings" account was transferred to or from:
>
> Income:
>
> Transfer In from Savings
> Transfer In from Checking
>
> Expense:
>
> Transfer Out to Savings
> Transfer Out to Checking
>
> HTH
>
> Peter
>
> > -----Original Message-----
> > From: KMyMoney [mailto:kmymoney-bounces at kde.org] On Behalf
> > Of Tobias Pankrath
> > Sent: Monday, October 09, 2017 4:07 PM
> > To: kmymoney at kde.org
> > Subject: Best practice: Budgeting with savings / part of income.
> >
> > Greetings,
> >
> > I am using KMyMoney quite successful to track my actual expenses,
> > but have a
> > hard time to figure out how you correctly use the budgeting feature, if
> > I plan
> > to save a portion of my income in an extra savings account.
> >
> > Suppose I've got one income category 'salary' and my monthly income
> > is 100$.
> > That's easy to configure in the budget dialog. But when I want to save
> > 20$ (by
> > transferring it to an extra savings account) I don't know how to do it.
> >
> > The problem is that savings are no expense, so it does not make sense
> > to have
> > a category for it, and similary I don't want to modify the income side of
> > the
> > equation to reduce my budget by 20$.
> >
> > I'd like two solutions to this problem: Manually specifying the budget
> > size
> > (to adjust the income part) or allow accounts to be used as expenses,
> > so that
> > I have an actual bugdet point for my savings.
> >
> > How do you solve this in your use of kmymoney?
> >
> > - Tobias
> >
> >
> >
>
>
>
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