Tracking Money in Savings Account

[Wayne Bird]

Derek,

> You only need to follow the subaccount structure *IF YOU ARE TRYING TO
> BUDGET FOR FUTURE EXPENSES*.  For example, if you're trying to budget
> for a TV, saving $50 each month to build up the $2000 for that TV, that
> would be when you'd want a Savings (or Checking) Subaccount.
> 
> However in this case the subaccounts don't make sense.  You're just
> using them as passthrough accounts, not as budgeting envelopes.

I'm beginning to understand a little bit more.  I'm really mixed up between putting everything in envelopes (subaccounts) or nothing at all.  So I understand what you mean by budgeting for future expenses, but isn't everything really being budgeted for future expenses -- gasoline, groceries, utilities, bi-annual insurance premiums, etc.?  Maybe, instead of subaccounts, I should use the budgeting feature of GnuCash?

Please don't give up on me!

Wayne




> From: warlord at MIT.EDU
> To: wrbird at hotmail.com
> CC: adardis at gmail.com; derek at ihtfp.com; gnucash-user at gnucash.org
> Subject: Re: Tracking Money in Savings Account
> Date: Thu, 16 Dec 2010 09:26:30 -0500
> 
> Wayne Bird <wrbird at hotmail.com> writes:
> 
> >> (2) Your account structure looks like it's (way?) too complicated. You
> >> need an account for checking and one for savings (Assets:Current:Checking
> >> and Assets:Current:Savings). You need Expenses:Healthcare:Dental. You need
> >> Liabilities:Dentist. You need something like Income:Inheritance. I think
> >> that's it, for this transaction.
> >
> > This is where I'm getting really confused.  I thought I was following the
> > subaccount structure that Derek talked about and I confirmed in a previous
> > e-mail:
> 
> You only need to follow the subaccount structure *IF YOU ARE TRYING TO
> BUDGET FOR FUTURE EXPENSES*.  For example, if you're trying to budget
> for a TV, saving $50 each month to build up the $2000 for that TV, that
> would be when you'd want a Savings (or Checking) Subaccount.
> 
> However in this case the subaccounts don't make sense.  You're just
> using them as passthrough accounts, not as budgeting envelopes.
> 
> >> > Please remember to CC this list on all your replies.
> >> > You can do this by using Reply-To-List or Reply-All.
> 
> -derek
> 
> -- 
>        Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
>        Member, MIT Student Information Processing Board  (SIPB)
>        URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
>        warlord at MIT.EDU                        PGP key available