Creating a budget

[David Stibbe]

> I would probably not put the bugdet account under assets but use a new
> tree "budget" and probably also another account type (I have a lot of
> "reports" accounts and they are mostly of type income/expence). But on
> the other side it is simply a question of choice. The accounts of
> gnucash are not really very different internally. It's you who adds in
> your mind the meaning "this are accounts that represent the money I
> have on the bank" and "this are accounts that represent how much I
> spent on my holiday". And the different account types only helps you
> to do this differenciation and to generate senseful reports. So as
> long as you don't think that the money in the budget account is real
> money and you don't add it to the report which shows your assets
> everything should be is fine.

Eventually I implemented the following solution:

   * I created an new root expenses account called 'planned purchases' .
   * I created a liabilities account called 'liabilities/money
required for planned purchases'
   * I create one subaccount under my savings account:  'assets/saving
accounts/my savings account/unreserved' to which all my savings go to
initially.
   * For each planned purchase I put an reserve account under my
savings account, e.g. 'assets/saving accounts/my savings
account/dishwasher reserve'


When I plan to make a purchase in the future, e.g. a television of
about a 1000 euro's, I add an transaction dated on the time I want to
purchase it :
   * 22/05/2011 - Transaction 'television' :   'liabilities/money
required for planned purchases'  ->  'planned purchases'   ---- 1000
EUR

I create the reserve account:
   *  'assets/saving accounts/my savings account/television reserve'

If I immediately want to reserve a certain amount for the television
(e.g. 200 EUR ) I add an transaction:
   * 22/05/2009 - Transaction 'Reserving money television' :
'assets/saving accounts/my savings account/unreserved'  ->
'assets/saving accounts/my savings account/television reserve'   ----
300 EUR

Then I calculate the amount I need to set aside monthly :
(1000-300)/(12*2) = 30 EUR , I add that as a note to the
'assets/saving accounts/my savings account/television reserve'
account. Then I create a scheduled transaction :
   * monthly  - Transaction 'Reserving money television' :
'assets/saving accounts/my savings account/unreserved'  ->
'assets/saving accounts/my savings account/television reserve'   ----
30 EUR

And adjust the amount that I transfer from my checking to savings
account monthly accordingly.



When I buy the television (in 22/05/2011) for 850 EUR, I create the
following transaction:
   * 22/05/2011 - Transaction 'buying television' :
      + 'planned purchases' -> 'liabilities/money required for planned
purchases'  ---- 1000 EUR
      + 'assets/saving accounts/my savings account/television reserve'
-> 'expenses/television' ---- 850 EUR
      + 'assets/saving accounts/my savings account/television reserve'
-> 'assets/saving accounts/my savings account/unreserved' --- 150 EUR


Kind regards,
David