Balancing a budget

[Fabrice Gautier]

Yet, the deficit has to come from somewhere or the profit has to go somewhere.

As far as I'am concern (and maybe thats not what gnucash budget is
about), a budget is a prediction of what all my accounts will look
like (including assets and liabilities).

So for example, lets say i plan to spend 200, but only have an income
of 100, then my budget could be:

Checking : -100
Income : +100
Expense : +200

-- Fabrice


On Jan 8, 2008 10:03 AM, Mike or Penny Novack <stepbystepfarm at mtdata.com> wrote:
>
> Fabrice Gautier wrote:
>
> >Hi,
> >
> >I'm wondering if there is a way to generate a balanced budget.
> >
> >For example, how can I make sure that my total budgets expenses, and
> >my total budgeted incomes are balanced ?
> >
> >
> What do you mean by this? A "budget" is normally a projection of income
> and expenses which can have a negative balance (aka "deficit budget"), a
> positive balance, or have a zero net balance (aka "balanced budget"). If
> your requirement is for a "balanced budget" then YOU have to adjust your
> projected income and expense amounts to make it so. That beginning with
> the amounts and finding out that you have a problem (deficit expected)
> or joy (excess projected) is what budgeting is for -- a PLANNING device.
>
> Understand? If you don't have any amounts that can be adjusted
> (discretionary spending) then a deficit means you have a financial
> problem. No automated system can make the HUMAN decision which
> income/expense items are cast in stone and which you can adjust if
> necessary. No software can do this for you.
>
> Michael
>