Tracking Money in Savings Account

[Wayne Bird]

No, it doesn't add confusion at all.  This was the principle I was using with MSMoney.  However, MSMoney wasn't designed to be used this way so I forced it to.  Doing this limited other features that MSMoney had and I couldn't use them because of it.  So, know that I'm migrating to GnuCash, I just want to use it in the way that it was designed so I don't start limiting it, even if that means I have to change the way I'm used to doing things.

> From: maf at chilwell.net
> To: gnucash-user at gnucash.org
> Subject: Re: Tracking Money in Savings Account
> Date: Wed, 15 Dec 2010 20:30:36 +0000
> CC: wrbird at hotmail.com
> 
> On Wednesday 15 December 2010 17:43:02 Wayne Bird wrote:
> 
> >
> > So your saying that basically there are two accounts with the same name (I
> > understand that this doesn't mean they're the exact same account), one will
> > be an asset account (subaccount of bank) and one will be an expense
> > account.  When my paycheck (income) is deposited into my bank account
> > (asset), I will transfer some of it into the subaccount (asset), say
> > movies.  Then when I spend on movies I will transfer from my asset account,
> > movies to my expense account, movies.  Is that correct?
> >
> > Wayne.
> 
> Hi Wayne,
> 
> Whenever I come up against some sort of "Huh?" conceptual problem with how to 
> do something in gnucash, I tend to try and think in terms of where cash goes.
> 
> Let's say that your employer gives you $100, in nice crisp dollar bills, as 
> salary.  You want to set $20 of that aside for the movies, so you put the 
> cash in an envelope, and write on it "+20 income on Dec 10".  You have gained 
> some income, and you have gained some greenbacks in your envelope. (an asset)
> 
> Then you take $15 out to go see the movie.  You remove the cash and hand it 
> over to the teller at the movie theatre.  You write "-15 movie foo Dec 15" on 
> the envelope.  Your asset is now reduced, and you have clearly increased the 
> total cost of your year's movie viewing.
> 
> GC can be just a tool to save writing on envelopes and running out of space, 
> especially if the cash isn't in envelopes on your table, but all lumped 
> together in a bank.  GC can also do other things too, like report on how much 
> you have spent on movies this year, saving you lots of adding up!
> 
> Remember, an asset is just something you own, be that cash stuffed in a 
> mattress, cash in a bank deposit account or some sort of investment such as 
> shares or artworks or cars etc.
> 
> Hope that doesn't add more confusion,
> 
> Maf.
> 
> 
>