doing budgeting/escrow within checking account

[Andrew Sackville-West]

On Wed, Jan 02, 2008 at 11:06:07AM -0500, Mike or Penny Novack wrote:
> Scott
> 
> >We budget very carefully on a monthly basis.  We maintain "mini-accounts"
> >within our checking account to set aside money each month for various
> >categories.  At each paycheck, we assign $$ to each mini-account (this isn't
> >an actual withdrawal from the checking account).  Then, as we make each
> >expenditure out of the checking account, we also reduce the mini-account's
> >balance by the same amount.  If the money isn't available in the
> >mini-account (would result in a negative balance), we don't make the
> >purchase!  In other words, we use it as a forward-looking tool that affects
> >our behavior *this month* instead of waiting until next month, seeing that
> >we overspent, and then adjusting.
> >
> >  
> >
> I might be able to help you here as I am doing something similar with an 
> organizational savings account (I am not maintaining separate bank 
> accounts for each dedicated "fund").
> 
> Here's how I have set this up -- I'll give an example for checking 
> instead of savings.
> 
> Current Funds (use whatever you want for the parent)
>     Checking Account (this is where the transactions recording deposits, 
> checks, and TRANSFERS get recorded)
>     Reserve for Entertainment
>     Reserve for .......
>     Reserve for .......  (again you pick the names)

your really close, IMO. Instead make

Current Assets
	Checking Account
		 Reserve1
		 Reserve2
		 ...

then you don't have to do the between account transfers. And you can
reconcile one account, selecting "include sub-accounts" in the
reconcile window. And at all times you know what you "non-reserve"
money is because that is what will show in the "Checking Account"
register. 

A
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