![]() ![]() ![]() Currently it isn’t, and so my income and expense report shows that I have money left over at the end often month, when in fact I’ve already allocated it all to one or more long term savings account. That way, when I run my income and expense report, that money is considered part of my outgoings. Once you understand how much you spend in each category, you can choose a budgeting style (of which there are many) that works for you.I think Banktivity should allow us to flag any account as a ‘Long Term Savings’ account such that when I transfer money to it, that transfer appears on income and expense reports as an expense. This also includes money you set aside in other savings vehicles, such as a 401(k) or a 529 plan. And while they may never happen, it’s still smart to plan for them (such as in the case of home repairs or emergency medical expenses). ![]() They may happen only once or twice in your lifetime (such as getting married, going to college, or buying a house). Savings expenses may happen occasionally throughout the year, but not regularly (gifts or vacations, for example). Variable expenses are things you have more control over, such as groceries, travel, dining out, shopping, and charitable donations. In general, your budget should be divided into three categories of expenses: fixed, discretionary, and savings.įixed expenses are things you can’t avoid paying, such as rent or a mortgage, utilities, and loans. ![]() You can make a budget for a specific time frame (monthly or annual are the most common). Take how much you expect to earn next month and use the expenditure percentages from step three to estimate what you can spend.
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