How can I do something like the "Envelope System"

[Rafferty Uy]

Wow! I didn't see this feature.
So what is the budget for? Does it give alerts if you overspend?


Thanks and happy new year!

Rafferty D. Uy
Software Engineer @ ease solutions Pte. Ltd.
MBA Student @ National University of Singapore

"Business is a game, the greatest game in the world if you know how to play
it."
~ Thomas J Watson (Founder of IBM)


On Fri, Jan 2, 2009 at 8:18 AM, Nick Hasser <nick.hasser at gmail.com> 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.
>
> Nick
>