budget and balances

mdfloyd's Avatar

mdfloyd

15 May, 2009 06:45 PM

I'm not even sure how to ask this question, much less do an effective search (couldn't find anything that seemed to match). I've set up my budget -- for example $20 for gasoline, $20 for groceries, and $10 for yard work. When I get paid I withdraw, say, $100 cash, with which I pay for the gasoline, groceries, and yard work -- with $50 cash left.

If I understand this right -- the $100 cash withdrawn shows up as $100 deducted from my balance, right? But if I then go in and say that I've met my budgeted $20 for gasoline, $20 for groceries, and $10 for yard work, the balance would show an extra $50 deducted from the balance.

How can I withdraw cash and use it pay certain budget items without Moneydance deducting too much from my overall balance?

If this doesn't make any sense, let me know and I'll try to rewrite it.

Thanks.

  1. 1 Posted by Ben Spencer on 16 May, 2009 11:26 PM

    Ben Spencer's Avatar

    Hi

    What you are describing makes sense to me and the trouble is is that your checking account within Moneydance (the one you are withdrawing the $100 from) is supposed to reflect the transactions that you make on your real checking account with the bank. When you make a withdrawal and select an expense category (even the ATM withdrawal category) that money is considered spent. Once you take the $100 from the bank any further transactions you make with that cash are not transactions that involve the checking account and should not be recorded in the checking account.

    One way I have managed with this type of situation, (where by I have a significant amount of cash on hand and I want to record how I spend that cash) is to set up a cash asset account. i.e. create a new asset account and call it "Petty cash". Now instead of recording withdrawals from the bank as going to the "ATM withdrawal" category I record the withdrawals as going to the "Petty cash" asset. And then when I buy things with the petty cash I make transactions in that separate account register. It is with those transactions in the Petty cash account register that i use the expense categories such as "Groceries".

    I hope that is helpful.

    Sincerely

    Ben spencer

  2. 2 Posted by mdfloyd on 17 May, 2009 07:59 PM

    mdfloyd's Avatar

    So, if I understand you correctly, I need to create another account that's really my budget stuff where I list how much for groceries, etc. The original account is for keeping bank balances, but knowing how well I'm staying on track with my budget would go with the second account?

    I'll go into MoneyDance and fool around and see what I come up with.

    Thank you!!!

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  3. 3 Posted by Ben Spencer on 17 May, 2009 09:29 PM

    Ben Spencer's Avatar

    It's not that the other account is your budget stuff. Rather the other account represents the cash you have taken out of your bank account. If you want to keep track of how you spend your cash once it has been withdrawn I would put it into another account. I think that a more typical pattern of use (and how I manage my money) is that people pay for most of their purchases directly from their bank account either with a debit card or by check or an online direct purchase.

    Alternatively a slightly simple option of keeping track of how you spend your cash would be to continue categorising withdrawals as "ATM Withdrawal" Then when you spend cash, transfer money from "ATM Withdrawal" to the category you spent the cash on. In order to do this you need to open the transaction register for the "ATM Withdrawal" category. Go to File->Preferences and check the box that says "Show all accounts in popup" and click ok. Now from the main accounts drop down list you can select the categories as well as your usual accounts. If you select the "ATM withdrawal" category from this list you will be taken to the transaction register for that category. From here you can make a transfer from "ATM Withdrawal" to "Groceries" or any other category. This would reduce the balance of ATM Withdrawal and increace the balance of Groceries.

    Sincerely

    Ben Spencer

  4. Ben Spencer closed this discussion on 17 May, 2009 09:29 PM.

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