Balancing a budget

[Mike or Penny Novack]

>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
>  
>
No, a budget CAN'T do that (predict the "standing" accounts).

Let's say that your budget of income/expenses for the period indicates a 
deficit. The budget process can't know if this deficit will be met by 
.......
a) A decrease in the balance maintained in one or the other of the 
current asset accounts (checking, savings, etc.) or what transfers might 
happen between them.
b) An increase in a liability (larger credit card balance)
c) The sale of some fixed asset or assets held in investment accounts.

The budget results (that it IS a "deficit budget") tells you that 
SOMETHING of the sort will have to happen but can't tell you which. 
That's a DECISION you will have to make to finance the deficit.

Michael