How to have targeted budgeting

Colin Grant's Avatar

Colin Grant

09 Feb, 2021 03:55 PM

Not sure if Moneydance can do this? I certainly have not found a way. I have certain bills that are paid annually and I allocate funds for them on a month by month basis. So if I have a bill of 1200 I put 100 per month away (or more or less) to cover. I guess it is a bit like a savings account in that respect but the difference is by being a targeted budget item I can see if I am on track or not to meet the target balance. Can I do this in Moneydance or something that achieves a similar result?

Thank you.
Colin

  1. 1 Posted by Stuart Beesley ... on 09 Feb, 2021 04:24 PM

    Stuart Beesley - JUST A FELLOW USER and Toolbox ‘guy’'s Avatar

    Yup - easy when you get your head round it....

    1. I create a sub account under my main bank called "Savings for...."

    2. I have also created an Asset Account called "Saving for...."

    3. Under this Asset account, I have created sub accounts for each saving 'thing'.. e.g. ..: Saving for Car" ..: Saving for Holiday" etc

    4. I have transaction reminders set up - 1 for each saving goal

    • Monthly, 1st of month
    • Auto-Commit
    • From bank account: Savings for... (Must one the bank sub account set up in step 1)
    • Category is the relevant Asset sub account - e.g. Saving For: saving for Holiday
    • amount is a payment

    Now monthly, these auto txns will 'hide' money from your bank account and move it into the asset account.. NOTE: this does not affect your bank reconciliations. These still work perfectly...

    When you want to reduce the savings, go to the asset sub account, e.g. savings for car, and then delete or amend any entry.. If you delete all, then all savings just go back to the bank account..

    I have these setup to appear on the Home Screen and side bar...

    (not support, just a fellow user)

  2. 2 Posted by Kidglove57 on 09 Feb, 2021 04:25 PM

    Kidglove57's Avatar

    Hi Colin
    I have adopted a different (and I think simpler) approach than Stuart, having come from a full on envelope budgeting background.
    I therefore have my own workaround for this using the new style budget. I allocate (as in your example) £100 pm to that category in the budget itself. I then set up a separate Budget Report using the “year to date” view. I can then see my cumulative budgeted amounts/spends year to date, much as you would in an envelope budget system (as I believe you will have experienced in already in the likes of YNAB/Goodbudget?).
    I eventually settled down in Moneydance after much research (and customised it quite a bit) as it gives my so much more than YNAB particularly for extracting reports for tax etc etc).
    I added the Moneyforsight extension to project forward my current account balance, so i know when to move money off interest bearing accounts.
    Paul

  3. 3 Posted by Colin Grant on 09 Feb, 2021 04:49 PM

    Colin Grant's Avatar

    Thanks Paul, that is certainly an option and a good one. I just wonder how that might integrate with the accounts I have to prepare for a medium sized charity. At the end of the day a budget is just a way to show income versus expenditure and any shortfall/surplus. The current budget tools provide that overview well enough but I would like to make it more granular - it maybe that being able to assign a fixed amount to the budget category is the way to go but that in itself is misleading as an annual bill due in December would show as a fully unfunded liability in January. The real answer as you say is envelope budgeting as per GB and YNAB.

    Colin

  4. 4 Posted by Kidglove57 on 09 Feb, 2021 07:12 PM

    Kidglove57's Avatar

    Hi Colin
    I am still working out better ways to do things - even after some months. All part of the fun really?!
    If you are using the New Style budget you could just put the annual amount in the December budget and £0 for the other months.
    OR
    In the Mixed Interval style budget just make the budget category as December only and as Annual Non Pro Rata.
    Have I understood correctly?
    Paul

  5. System closed this discussion on 11 May, 2021 07:20 PM.

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