Hi
I’m wondering if I should set my income categories to “track”. I have a savings budget sheet. My problem is that my iincome amount is not always the same. Also, I will start having extra income that I will put into an “other income” category. I did look at my budget and take the average for what my income would be, but I would rather be exact. Any thoughts? Advantages/Disadvantages?
Thanks,
Kim
I keep my regular income and expenses all set on savings (so it tracks it) and when I have over budgeted income or other income I can see it. For my savings budget, I may not do the typical as at the beginning of each month, I make adjustments to the categories to cover any overages using other categories or extra income I might have. Doing it this way lets me still see where I went over budget when I look at the month but trues it up for the next month in keeping with a zero based type budget. One thing I do not set to savings is my interest income, and I don’t count it a spendable.
If you adjust your budget so that it reflects a zero based budget, what will the available income amounts be? $0 or your paycheck amount?
I don’t adjust the budget I have set, just the savings amount. January is a good example for income as I get paid biweekly, so I had an extra check in January. I don’t build my budget counting those 2 extra paychecks each year (well I hadn’t until I changed this year). So for January, say my check is $1000, so at the end of the month the available column shows I have $1000 available in income. On Feb 1, I make adjustments to the savings budget using the community solutions extension. (I will make notes in the budget journal as to why I am adjusting the savings.) I subtract $1000 from income, but I add $1000 for Misc - or somewhere else I overspent. This keeps the bottom line at zero. I also do this with Misc Income, I will leave it in January and adjust in February. So I am not actually changing my budget at all. My budget I look at as a “guideline” but also I have a very predictable check. If it bothers you or you don’t need to track your income because you know it fluctuates and you are more concerned with the actual expenses, then I would say don’t track your income. It really is what makes sense in your brain. I almost never mess with the budget and never true up over/under amounts in the month they occur, but rather the following month since this works well for me. I am not sure I am using the savings budget the way intended or the way others do it, but it makes sense for me. I hope this makes sense.
I’m sorry. I’m wondering what the savings budget will show for income. Will the available amount be 0 at the end of the month or will it reflect the budgeted amount (assuming I was paid what I expected).
If you track your income (show the savings month to month) it will have an amount in the savings column, but will not change your budget. It will show the total available of your budget plus or minus anything in the savings column. Plus if you had over budgeted income and minus if you didn’t bring in as much income.
