Best way to earmark funds?

[Victor Chudnovsky]

Hi all,

What is the best way to earmark funds that I'm reserving for a specific
purpose?

Say I'm tracking my money in my savings account, but I want to somehow
note that $XX is earmarked for a special project (eg a big purchase) so
that it is not really available for me to spend on other things. How do
I do this? (I still want the savings ledger to reflect the total money
in the bank.)

One thought I had was to create a liability account for special projects
where I record the big purchase, and then only look at the net savings
+projects together to see how much money I *really* have available to
spend on other things. Once I actually make the purchase, the money goes
from the savings account to an expense account, and I manually remove
the liability entry.

Is there a simpler way to accomplish this?

Victor
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