How can I do something like the "Envelope System"
plongstaff at rogers.com
Thu Jan 1 19:28:37 EST 2009
On January 1, 2009 07:18:29 pm Nick Hasser wrote:
> Rafferty Uy wrote:
> > Hi,
> > Does anyone know how to do something like the envelope system? Here's the
> > idea:
> > You have a payroll account, where every month a fixed amount is deposited
> > by your employer.
> > You want to allocate this amount to different "envelopes", but all kept
> > in your bank account.
> > So for example you have a bank account with a total deposit of $1000, you
> > know that this $1000 is composed of $200 in savings, $300 in bills, $400
> > for daily necessities and $100 for unplanned things.
> > Is there a way to do this automatically for every pay day?
> If it's all in a single bank account, set up an asset account for that
> bank account (Assets:Current Assets:Checking Account).
> Then create subaccounts for each envelope, such as Assets:Current
> Assets:Checking Account:Bills, Assets:Current Assets:Checking
> Account:Savings, etc.
> If it's the same amount for every pay day, set it up as a scheduled
> transaction with splits going into each Bills, Savings, etc, subaccount.
This can work if you pay for everything with cash or direct debit. If you
want to be able to buy something on a credit card, you might also need a
subaccount called Credit Card Liability. When you buy with a credit card,
transfer from the appropriate envelope subaccount to the Credit Card Liability
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