Transfer from budget to tracking

I’ve invested money from a savings account to an investment account.  In recording the transaction, I’m forced to select a category.  This results in the category appearing to be WAY overspent since all those dollars are moving from my budget to a tracking account.  Is this how it’s supposed to work?  Do I just leave an overspent account for this month?  Thanks much.

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  • So first, you account is not overspent (well, I guess if you overdrafted you could say the account is overspent), your category is overspent. And no, it should not be red. You have to allocate funds to categories for money that is going to leave your budget, even if it is only going to a tracking account (which is outside your budget). I have a category for investing and I assign funds to it every month because every month on the 30th, there is an auto debit to transfer funds from checking to brokerage.

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      • Julie
      • sandhills_rider
      • 1 mth ago
      • Reported - view

      jenmas Can you explain the nuts and bolts of this?  For instance, let’s say I have $500 in a savings account.  The savings account is in my budget, labeled as such.  I set up a tracking account, “Investment”.  I also have a budget category, “monthly investing”.  When I try to move $250 from the savings and select “monthly investing” as the category, it shows “monthly investing” as being $250 in the red.  And simultaneously, I set up my initial balance in the tracking account as $250.  So I’m either double-counting or in the red.  

      I’m not sure how to account for money that is leaving my budget and going to a tracking account and keeping everything balanced.  Thanks!  

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      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 1 mth ago
      • 2
      • Reported - view

      Julie You must first move $250 from your savings category to your investing category, because now it is not savings, it is money that is going to the investing account. 

      In the long term, matching accounts to categories is not particularly helpful and I would suggest eventually changing your savings category to categories which capture the things you are saving for. 

      Like 2
      • jenmas
      • jenmas
      • 1 mth ago
      • 2
      • Reported - view

      Julie Your savings account is merely where your money "lives". It has nothing to do with its purpose (category). I have 3 checking accounts and 3 savings accounts (for the purposes of maximizing interest and eliminating fees). The money in my savings account(s) isn't "for" my Loss of Income category. It's just where some of the dollars hang out until they get spent. None of my category balances (or groups of category balances) match any of my account balances because it isn't necessary. I could have $500 in my Savings account and $2000 in my checking account and still have $1500 "saved" in my down payment category. Money is "saved" when you assign it to a category and don't spend it, not when you put it in a savings account.

      If you want to invest money, you have to first assign funds to your investing category and then move money to your investing account.

      Like 2
      • Julie
      • sandhills_rider
      • 1 mth ago
      • Reported - view

       jenmas Ah, I was missing the step of moving money from the Savings category to the Investing category.  Doh!  Thanks.

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      • Julie
      • sandhills_rider
      • 1 mth ago
      • Reported - view

      WordTenor Thanks for the reminder on the "Move" function.  It's actually labelled as saving for something in particular, I get that concept too.  Thanks much.

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