Author Topic: Have a problem !  (Read 543 times)

Offline keyboard

Have a problem !
« on: February 11, 2017, 09:48:22 AM »
Hi All

I am still confused by the concept more than the Software..... I am having problems understanding how to record this.....

I have instructed my bank to take $2.00 out of my Checking Account every time I use my debit Card and move it to a Saving Account ( Plan 24 00017 )  I am retired and not concerned about using extra steps to do this. Maybe not the best way to save but it works for me .

- I have created an "On Budget" Account named "Plan 24 00017" and put in the Balance $174.79
- Today I want to record the $6.00 removed from my Checking account, to the Plan 24 00017
- This is where it gets complicated for me. 
   
DATE           2/11/16
PAYEE          Transfer to/from account   Plan 24 00017
CATEGORY   ?????????????????????    If I am doing a Transfer, why do I need to Categorize ?
MEMO
OUTFLOW     $6.00
INFLOW
CLEARED

Please advise

Ron

Go for the 7 Ball  !!!!!!!

www.createsongstyles.com

Offline Joel

Re: Have a problem !
« Reply #1 on: February 11, 2017, 10:52:38 AM »
If the savings account it is being transferred to is "off-budget", the money is considered spent when it is transferred and therefore, must leave your budget. That's why you must categorize the transaction. Whereas, if the savings account is "on-budget", it is like moving money from one pocket to another - and ultimately your category balances are what define the purpose of your money.

My personal strategy is to avoid keep the change type programs like this and budget a set amount to purpose-defined savings categories such as retirement, vacation, car replacement, medical bills, house downpayment, etc.
Biking and budgeting my way to early retirement!

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