Trusting the budget - method
We made some changes, and want to be sure that the "to be budgeted" is correct. I know it is basic, but I forgot what method we use to make sure our budget can be trusted?
If your accounts, on the left, are reconciled and up to date, that is verification you are only budgeting the money you currently have. There have been times recently when I had so much money coming and going in my budget (insurance claim for water damage) that my head was spinning and wasn't sure how much I had. I reconciled my accounts daily and trusted the numbers. It got me through.
Sometimes I finagle things too much and get paranoid I'm budgeting imaginary money (especially when it comes to reimbursements!). If you really want peace of mind, try the following:
- Sum up the available cash in your accounts
- Sum of "Available" for this month + Sum of "Budgeted" for future months = B
These 2 numbers should match!