Goals - Best Practice
Is it best practice to have goals equal total income expected for a month? I just realized my total goals is a few hundred less than I expect for income, should I just up my saving goal or could that "overflow" be used differently?
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There is no best practice in regards to goals. For example, I do not use goals at all.
The only best practice is to give every dollar a job and make sure it aligns with your priorities.Goals are just to remind you to fund things in your budget if you need the reminder.
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nolesrule Curious if you could describe the process you use to fund your categories without using goals. Do you take advantage of any of the quick budgeting options (budgeted last month, average budgeted, etc.)? Do you fund each of your goals one at a time or do you select more than one when budgeting? By using goals, I'm able to select all my categories at once and hit Underfunded in order to fund them all. I know I could do this by having scheduled transactions as well.
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sgarelick I use Budgeted last Month, but this is done in my budget 2 months out where I keep my template. I would love to have a Quick Budget for a template that doesn't involve having goals at all.
When I finally hit the month then I tweak the handful of categories that require calculations to do the Budgeted amounts (there are no goals that support the calculations). I also have two categories that get adjusted based on scheduled transactions (weekly allowance for the kids).
I just find the goals finicky and annoying so I don't use them. If you don't start or stop them in the exactly correct month, it gives you bad data with which to fund your categories, and it yells at you if you WAM.
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I think it's probably best to not have total goals = total income. This reduces your ability to be flexible within the month with the overage.
Best practice is to obviously not have your total goals > total income.
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It's totally up to you! (And, to echo what others have said here, the only real best practice is that your monthly goals not exceed your income! 😉)
And, because of this, it's an interesting question to consider!- Do you use a Budget Template? And are you paid regularly the same amount? If so, perhaps it makes more sense to you that your total goals be close to your total income.
- Have you used a margin in your budget? This could be a spot in your budget where your excess monthly cash is stashed so you can use it for flexibility.
- Or, maybe, that excess monthly cash is compost for your Wish Farm?!
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Dela this video is exactly what i was thinking/looking for, thanks!
