Comments on: Budgeting With GNUCash

By: Christopher

Christopher — Sat, 28 Jan 2012 19:40:52 +0000

I have a feeling that in order to correctly use and manipulate the internal budgeting system, you need to go into the data files themselves. It just seems too bulky to only go in through the default user interface.

I did budgets with the internal tool, but manipulating them seems difficult to me.

The envelop system seems kind of nice, but I would do it differently :

ASSETS
LIABILITIES
OTHER_EQUITY
INCOME
+– ACCRUED_INCOME
EXPENSES
+– ACCRUED_EXPENSES

BUDGET_ASSETS
BUDGET_LIABILITIES
BUDGET_OTHER_EQUITY
BUDGET_INCOME
BUDGET_EXPENSES

I would make the budget COA one level simpler than the “real” COA, but perhaps include “interesting” accounts. At the same time, I would use the internal budgeting for the “real” accounts. the “budget” COA would only help me calculate my “main” budget hypothesis (since the internal system allows for multiple concurrent budgets.)

Perhaps this is doing the work thrice.

By: YYC

YYC — Tue, 10 May 2011 20:42:15 +0000

I think you misunderstood Wise Finish’s post. What they’ve described is a ~cash~ envelope system. They take ~cash~ out of their bank account, and put it into a physical envelope. In that case, it’s perfectly reasonable to categorize the withdrawal to whatever expense account you plan to spend that money on.

By: bgrupczy

bgrupczy — Tue, 05 Apr 2011 22:59:40 +0000

Did some more thinking about what you posted and it really doesn’t make any sense. Now I tried following the link your “Wise Finish” name is pointing to and it kinda looks bogus too. Just another ploy to get people to a heavily ad laden site. Yes, I looked at the posts and they all have reference to signing up for something. Makes me mad that I spent time noodling on this.

By: bgrupczy

bgrupczy — Mon, 28 Mar 2011 21:55:19 +0000

@Wise Finish
I thought of something else too. If you are budgeting towards a liability (not expense) then this method affects the liability balance even though the money hasn’t been spent yet. Thoughts?

By: bgrupczy

bgrupczy — Mon, 28 Mar 2011 21:51:16 +0000

@Wise Finish
I like that idea! It would eliminate me having to reassign the expense down to a subaccount.
But then you can’t ensure that your accounts in GC match your bank, right? You can’t reconcile. Or is there no point because the money is good as gone?

By: Wise Finish

Wise Finish — Fri, 21 Jan 2011 04:38:03 +0000

My thoughts on enveloping in GnuCash follow the KISS principle.

When I take the money out of checking to place in my envelopes, I just create a split transaction that divides the money directly into the appropriate expense accounts. Once the cash is in the envelope it is as good as spent on that expense category; and I don’t have to worry about tracking the details about what I spend that envelope cash on.

Mission accomplished.

By: Tony

Tony — Tue, 14 Dec 2010 20:32:14 +0000

Just tried setting up an “envelope” (a subaccount to one of my savings accounts). When you reconcile the parent account, make sure to check Include subaccounts in the Reconcile information dialog that starts the reconcile. After that, it looks (to me; but I’m not an accountant) as if “but you would essentially be tracking your expenses twice” doesn’t apply: you create transactions from the subaccount only once.