Starting in November - how do I include my savings account?
In adding my accounts, I added our savings account. It is primarily an account I use to set aside money to make sure we have the funds to pay our property taxes when they come due twice a year. I'm not quite sure how to account for it in the budget. One of the tax bills is in November, so I budgeted that amount for the taxes, but the rest? I'm not sure the best way to label it so I don't allocate it to other categories.
Hi Green Lathe ! This is a great question!
Savings accounts are purposefully included as a part of your budget, because we want you to give those dollars a job, too! It's a different way of thinking about savings, but it's really powerful.
What you need to do is assign the dollars in your savings account to savings categories. What are you saving for? Emergencies? Vacation? Or those taxes! Make specific categories for those things in your budget and assign the dollars there.
The nice thing about that is you'll be able to attach Goals to those categories, and that will focus your savings even more.
I hope this helps! :)
this helps me too, but what happens when you allocate a transaction to leave your checking to go into the savings.? I have a category to allocate from checking, and the specific category within savings... but when do i adjust the amount budgeted to the specific savings category? so i had 450 in savings category. I budgeted 75 from checking this month. so i put the transaction in as savings from checking, and my savings account shows it but the budgeted for the savings category is still 450. where is that 75 currently at in my budget. (i have no idea if this makes sense, i am just confusing myself more trying to explain it. lol)