From 59f3428132909319ebc95a752388053c22622da2 Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Mon, 14 Oct 2024 18:46:00 +0200 Subject: [PATCH 01/11] #470 - added section on Pay Yourself First strategy --- docs/getting-started/envelope-budgeting.md | 14 ++++++++++++-- 1 file changed, 12 insertions(+), 2 deletions(-) diff --git a/docs/getting-started/envelope-budgeting.md b/docs/getting-started/envelope-budgeting.md index 87100194a..513a66e3d 100644 --- a/docs/getting-started/envelope-budgeting.md +++ b/docs/getting-started/envelope-budgeting.md @@ -69,13 +69,23 @@ A more detailed breakdown of how budgeting in Actual works is provided in the [b If you currently are carrying credit card debt in an on budget account you will need to capture that debt in a category. A guide on how to handle that can be found in [the credit card guide](/docs/budgeting/credit-cards/). -### The Month Ahead Method +### The Month Ahead Strategy It can be hard to know where to budget your funds when you get paid in the middle of the month, or get multiple paychecks per month. One way to handle this is called the *month ahead* method. This consists of holding everything you make this month and only budgeting it next month. The goal is to not need any of this month's income for this month's bills, but pay all of this month's bills with last month's income. Actual makes this easy by allowing you to hold your available funds for the next month by clicking the To Budget amount at the top of the budgeting screen -and selecting the "Hold for next month" option. You can read more about this on the budgeting page +and selecting the *Hold for next month* option. You can read more about this on [the budgeting page](/docs/budgeting/). + + +### Pay-Yourself-First Strategy +The Pay-Yourself-First strategy focuses on saving a portion of your income before spending on anything else. +By making savings the top priority, this approach helps individuals build financial stability and prepare for unexpected +events. Automating savings, such as setting up automatic transfers, ensures consistency and reduces the temptation +to overspend. The strategy also encourages a balanced approach, addressing both immediate needs and long-term +financial security. Actual has functionality for [Schedules](/docs/schedules) +and [Budget Goal Templates](/docs/experimental/goal-templates#goal-directive) that can help you with this strategy. + ### Shared accounts We have a guide on what to do when it comes to [strategies for handling joint accounts](/docs/budgeting/joint-accounts). From 4ec9324624b144282b3928784da709a22c27ba9b Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Tue, 22 Oct 2024 06:25:08 +0200 Subject: [PATCH 02/11] Added examples in both Pay-Yourself-First and the Month Ahead strategies --- docs/getting-started/envelope-budgeting.md | 22 ++++++++++++++++------ 1 file changed, 16 insertions(+), 6 deletions(-) diff --git a/docs/getting-started/envelope-budgeting.md b/docs/getting-started/envelope-budgeting.md index 513a66e3d..617fd421c 100644 --- a/docs/getting-started/envelope-budgeting.md +++ b/docs/getting-started/envelope-budgeting.md @@ -65,10 +65,6 @@ are going, make changes. If you're happy, great! Keep budgeting to keep track of A more detailed breakdown of how budgeting in Actual works is provided in the [budgeting page](/docs/budgeting/). -### Credit Cards -If you currently are carrying credit card debt in an on budget account you will need to capture that debt in a category. -A guide on how to handle that can be found in [the credit card guide](/docs/budgeting/credit-cards/). - ### The Month Ahead Strategy It can be hard to know where to budget your funds when you get paid in the middle of the month, or get multiple paychecks per month. One way to handle this is called the *month ahead* method. This consists of holding everything @@ -77,6 +73,12 @@ month's bills, but pay all of this month's bills with last month's income. Actua to hold your available funds for the next month by clicking the To Budget amount at the top of the budgeting screen and selecting the *Hold for next month* option. You can read more about this on [the budgeting page](/docs/budgeting/). +For example, if you make € 3,000 this month, instead of spending it on this month's bills, you save it and use it to +cover next month's expenses. Most people cannot achieve this in one month, so the way forward is to build up a +buffer. Instead of aiming to save the full € 3,000 in one go, begin by setting aside a smaller amount each month. +For example, if you can set aside € 200 each month, gradually build your buffer over several months. As you save +more, you’ll start to pay some of next month’s bills with this reserve. + ### Pay-Yourself-First Strategy The Pay-Yourself-First strategy focuses on saving a portion of your income before spending on anything else. @@ -86,6 +88,16 @@ to overspend. The strategy also encourages a balanced approach, addressing both financial security. Actual has functionality for [Schedules](/docs/schedules) and [Budget Goal Templates](/docs/experimental/goal-templates#goal-directive) that can help you with this strategy. +For example, if you earn €3,000 a month, you might decide to save 20%, or €600, as soon as you receive your paycheck. +You set up an automatic transfer to move this amount into a savings account, ensuring it is set aside before you +pay any bills or make purchases. The remaining €2,400 is then available to cover your living expenses, such as rent, +utilities, groceries, and entertainment. This method guarantees that your savings goal is consistently met without +having to rely on what’s left at the end of the month. + + +### Credit Cards +If you currently are carrying credit card debt in an on budget account you will need to capture that debt in a category. +A guide on how to handle that can be found in [the credit card guide](/docs/budgeting/credit-cards/). ### Shared accounts We have a guide on what to do when it comes to [strategies for handling joint accounts](/docs/budgeting/joint-accounts). @@ -94,8 +106,6 @@ We have a guide on what to do when it comes to [strategies for handling joint ac You can read more about these in the [returns and reimbursements guides](/docs/budgeting/returns-and-reimbursements). - - ## How to set up and use an envelope system with Actual Budget Learning to budget using Actual Budget is straightforward, even From e8106989cef9f1dc5a204414e3609a6dffdcadaa Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Tue, 22 Oct 2024 12:46:46 +0200 Subject: [PATCH 03/11] Added link to blog article --- docs/getting-started/envelope-budgeting.md | 2 ++ 1 file changed, 2 insertions(+) diff --git a/docs/getting-started/envelope-budgeting.md b/docs/getting-started/envelope-budgeting.md index 617fd421c..9374a4a9e 100644 --- a/docs/getting-started/envelope-budgeting.md +++ b/docs/getting-started/envelope-budgeting.md @@ -79,6 +79,8 @@ buffer. Instead of aiming to save the full € 3,000 in one go, begin by setting For example, if you can set aside € 200 each month, gradually build your buffer over several months. As you save more, you’ll start to pay some of next month’s bills with this reserve. +You can also read about this strategy in [one of our blog posts](/blog/2023-12-15-automate-your-budget-with-goal-templates#paying-myself-first). + ### Pay-Yourself-First Strategy The Pay-Yourself-First strategy focuses on saving a portion of your income before spending on anything else. From 4dd758eb54de199af318a4c1a954db6572b57562 Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Tue, 22 Oct 2024 12:48:18 +0200 Subject: [PATCH 04/11] Amend link to blog article --- docs/getting-started/envelope-budgeting.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/getting-started/envelope-budgeting.md b/docs/getting-started/envelope-budgeting.md index 9374a4a9e..6ccc74cb1 100644 --- a/docs/getting-started/envelope-budgeting.md +++ b/docs/getting-started/envelope-budgeting.md @@ -79,7 +79,7 @@ buffer. Instead of aiming to save the full € 3,000 in one go, begin by setting For example, if you can set aside € 200 each month, gradually build your buffer over several months. As you save more, you’ll start to pay some of next month’s bills with this reserve. -You can also read about this strategy in [one of our blog posts](/blog/2023-12-15-automate-your-budget-with-goal-templates#paying-myself-first). +You can also read about this strategy in [one of our blog posts](/blog/2023-12-15-automate-your-budget-with-goal-templates). ### Pay-Yourself-First Strategy From 5b902c33f5352cdff7abf0771eba2470a2def185 Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Tue, 22 Oct 2024 12:50:23 +0200 Subject: [PATCH 05/11] =?UTF-8?q?Added=20space=20after=20the=20=E2=82=AC?= =?UTF-8?q?=20sign?= MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit --- docs/getting-started/envelope-budgeting.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/docs/getting-started/envelope-budgeting.md b/docs/getting-started/envelope-budgeting.md index 6ccc74cb1..3d76dede0 100644 --- a/docs/getting-started/envelope-budgeting.md +++ b/docs/getting-started/envelope-budgeting.md @@ -90,9 +90,9 @@ to overspend. The strategy also encourages a balanced approach, addressing both financial security. Actual has functionality for [Schedules](/docs/schedules) and [Budget Goal Templates](/docs/experimental/goal-templates#goal-directive) that can help you with this strategy. -For example, if you earn €3,000 a month, you might decide to save 20%, or €600, as soon as you receive your paycheck. +For example, if you earn € 3,000 a month, you might decide to save 20%, or € 600, as soon as you receive your paycheck. You set up an automatic transfer to move this amount into a savings account, ensuring it is set aside before you -pay any bills or make purchases. The remaining €2,400 is then available to cover your living expenses, such as rent, +pay any bills or make purchases. The remaining € 2,400 is then available to cover your living expenses, such as rent, utilities, groceries, and entertainment. This method guarantees that your savings goal is consistently met without having to rely on what’s left at the end of the month. From a1b4071ba2d6692a36df6baafcd8f2f0a855b421 Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Fri, 3 Jan 2025 07:48:26 +0100 Subject: [PATCH 06/11] =?UTF-8?q?Change=20currency=20symbol=20from=20?= =?UTF-8?q?=E2=82=AC=20to=20$=20due=20to=20standarization=20on=20US=20spel?= =?UTF-8?q?ling.?= MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit --- docs/getting-started/envelope-budgeting.md | 374 ++++++++++----------- 1 file changed, 187 insertions(+), 187 deletions(-) diff --git a/docs/getting-started/envelope-budgeting.md b/docs/getting-started/envelope-budgeting.md index 3d76dede0..21447e559 100644 --- a/docs/getting-started/envelope-budgeting.md +++ b/docs/getting-started/envelope-budgeting.md @@ -16,89 +16,89 @@ utility bills, and other regular payments. These fixed costs are crucial and mus complete picture of your finances. Actual Budget ensures that every fixed or variable expense is considered. This comprehensive approach makes AB much more effective than the traditional cash-stuffing method. -A significant advantage of using Actual Budget is increased awareness of expenses. +A significant advantage of using Actual Budget is increased awareness of expenses. Knowing where every penny of your money is spent is a decisive step towards financial control and stability. ## Zero-Sum Budgeting -Zero-Sum budgeting[^1] is a key principle in electronic envelope budgeting systems like Actual Budget. -This approach means that all income is assigned to a specific category, leaving no money unallocated. +Zero-Sum budgeting[^1] is a key principle in electronic envelope budgeting systems like Actual Budget. +This approach means that all income is assigned to a specific category, leaving no money unallocated. This gives every unit of currency a purpose, ensuring that income is used efficiently and intentionally. -A popular saying is all your money should have a "job". +A popular saying is all your money should have a "job". -One dollar (or whatever your currency is) may be used for Netflix while the next dollar may be for savings. -Giving every dollar a job forces you to be honest about where you money is going because each dollar can +One dollar (or whatever your currency is) may be used for Netflix while the next dollar may be for savings. +Giving every dollar a job forces you to be honest about where you money is going because each dollar can only have one job. Here’s what Zero-Sum Budgeting involves: -- **Total Allocation**: All your income is allocated to specific categories, resulting in a +- **Total Allocation**: All your income is allocated to specific categories, resulting in a zero balance. -- **Goal-Oriented Planning**: It encourages you to assign funds with specific goals, such as saving for +- **Goal-Oriented Planning**: It encourages you to assign funds with specific goals, such as saving for emergencies, paying off debts, or investing. This aligns your spending with your overall financial objectives. -- **Flexibility**: This method allows flexibility as your priorities change. It requires regular evaluation +- **Flexibility**: This method allows flexibility as your priorities change. It requires regular evaluation and adjustment, making it suitable for those with dynamic financial situations. -By following Zero-Sum Budgeting, you can maintain control over your finances and ensure that every income +By following Zero-Sum Budgeting, you can maintain control over your finances and ensure that every income is working towards your financial goals. ## Zero-Sum Budgeting Strategies you can use -Every one has a different situation so there isn't a once size fits all way to assign your available funds. +Every one has a different situation so there isn't a once size fits all way to assign your available funds. Detailed below are a few strategies you can use. ### The Basics of Zero-Sum Budgeting -A basic idea with zero-sum budgeting is that you can only budget what you have, and all you have should be -budgeted. If you budget more than you have one month, the over budgeted amount will be deducted from what -you have available the next month. So to start, decide what your most important categories are. Those -important categories might be rent, food, and utilities. Assign what you need for those categories, then -repeat the process for the next most important categories until your to budget amount for the month reaches +A basic idea with zero-sum budgeting is that you can only budget what you have, and all you have should be +budgeted. If you budget more than you have one month, the over budgeted amount will be deducted from what +you have available the next month. So to start, decide what your most important categories are. Those +important categories might be rent, food, and utilities. Assign what you need for those categories, then +repeat the process for the next most important categories until your to budget amount for the month reaches zero. When you get a paycheck, or other income, continue filling in where the funds are needed. -As you go along you will start to get a good view of where your money is going. If you don't like how things +As you go along you will start to get a good view of where your money is going. If you don't like how things are going, make changes. If you're happy, great! Keep budgeting to keep track of your progress on your goals. A more detailed breakdown of how budgeting in Actual works is provided in the [budgeting page](/docs/budgeting/). ### The Month Ahead Strategy -It can be hard to know where to budget your funds when you get paid in the middle of the month, or get multiple -paychecks per month. One way to handle this is called the *month ahead* method. This consists of holding everything -you make this month and only budgeting it next month. The goal is to not need any of this month's income for this -month's bills, but pay all of this month's bills with last month's income. Actual makes this easy by allowing you -to hold your available funds for the next month by clicking the To Budget amount at the top of the budgeting screen +It can be hard to know where to budget your funds when you get paid in the middle of the month, or get multiple +paychecks per month. One way to handle this is called the *month ahead* method. This consists of holding everything +you make this month and only budgeting it next month. The goal is to not need any of this month's income for this +month's bills, but pay all of this month's bills with last month's income. Actual makes this easy by allowing you +to hold your available funds for the next month by clicking the To Budget amount at the top of the budgeting screen and selecting the *Hold for next month* option. You can read more about this on [the budgeting page](/docs/budgeting/). -For example, if you make € 3,000 this month, instead of spending it on this month's bills, you save it and use it to -cover next month's expenses. Most people cannot achieve this in one month, so the way forward is to build up a -buffer. Instead of aiming to save the full € 3,000 in one go, begin by setting aside a smaller amount each month. -For example, if you can set aside € 200 each month, gradually build your buffer over several months. As you save +For example, if you make $ 3,000 this month, instead of spending it on this month's bills, you save it and use it to +cover next month's expenses. Most people cannot achieve this in one month, so the way forward is to build up a +buffer. Instead of aiming to save the full $ 3,000 in one go, begin by setting aside a smaller amount each month. +For example, if you can set aside $ 200 each month, gradually build your buffer over several months. As you save more, you’ll start to pay some of next month’s bills with this reserve. You can also read about this strategy in [one of our blog posts](/blog/2023-12-15-automate-your-budget-with-goal-templates). ### Pay-Yourself-First Strategy -The Pay-Yourself-First strategy focuses on saving a portion of your income before spending on anything else. -By making savings the top priority, this approach helps individuals build financial stability and prepare for unexpected -events. Automating savings, such as setting up automatic transfers, ensures consistency and reduces the temptation -to overspend. The strategy also encourages a balanced approach, addressing both immediate needs and long-term -financial security. Actual has functionality for [Schedules](/docs/schedules) +The Pay-Yourself-First strategy focuses on saving a portion of your income before spending on anything else. +By making savings the top priority, this approach helps individuals build financial stability and prepare for unexpected +events. Automating savings, such as setting up automatic transfers, ensures consistency and reduces the temptation +to overspend. The strategy also encourages a balanced approach, addressing both immediate needs and long-term +financial security. Actual has functionality for [Schedules](/docs/schedules) and [Budget Goal Templates](/docs/experimental/goal-templates#goal-directive) that can help you with this strategy. -For example, if you earn € 3,000 a month, you might decide to save 20%, or € 600, as soon as you receive your paycheck. -You set up an automatic transfer to move this amount into a savings account, ensuring it is set aside before you -pay any bills or make purchases. The remaining € 2,400 is then available to cover your living expenses, such as rent, -utilities, groceries, and entertainment. This method guarantees that your savings goal is consistently met without +For example, if you earn $ 3,000 a month, you might decide to save 20%, or $ 600, as soon as you receive your paycheck. +You set up an automatic transfer to move this amount into a savings account, ensuring it is set aside before you +pay any bills or make purchases. The remaining $ 2,400 is then available to cover your living expenses, such as rent, +utilities, groceries, and entertainment. This method guarantees that your savings goal is consistently met without having to rely on what’s left at the end of the month. ### Credit Cards -If you currently are carrying credit card debt in an on budget account you will need to capture that debt in a category. +If you currently are carrying credit card debt in an on budget account you will need to capture that debt in a category. A guide on how to handle that can be found in [the credit card guide](/docs/budgeting/credit-cards/). ### Shared accounts @@ -110,21 +110,21 @@ You can read more about these in the [returns and reimbursements guides](/docs/b ## How to set up and use an envelope system with Actual Budget -Learning to budget using Actual Budget is straightforward, even +Learning to budget using Actual Budget is straightforward, even if you're new to budgeting. Here's a checklist for getting started: ### 1. Establish budget categories -The first step is deciding which expense and income  [categories to include in your budget](/docs/budgeting/categories). -Tailor each category to fit your specific budget and spending habits, giving you the power to customize +The first step is deciding which expense and income  [categories to include in your budget](/docs/budgeting/categories). +Tailor each category to fit your specific budget and spending habits, giving you the power to customize the system to your needs for the most accurate tracking. -Common categories might include general areas such as groceries, gas, clothing, entertainment, and savings. -Additionally, you can use Actual Budget for managing debt payments and long-term savings goals, +Common categories might include general areas such as groceries, gas, clothing, entertainment, and savings. +Additionally, you can use Actual Budget for managing debt payments and long-term savings goals, ensuring all aspects of your financial life are comprehensively covered. -Review the last three months of your bank statements to identify your categories. Look for recurring -expenses and income sources to determine which categories are necessary. This will give you a clear +Review the last three months of your bank statements to identify your categories. Look for recurring +expenses and income sources to determine which categories are necessary. This will give you a clear picture of where your money goes and help you create a budget that reflects your spending patterns and financial goals. @@ -132,37 +132,37 @@ picture of where your money goes and help you create a budget that reflects your ### 2. Allocate amounts to each category -Once you have identified the categories for your expenses and incomes, the next step is -to decide how much money to allocate to each category. This allocation ensures that +Once you have identified the categories for your expenses and incomes, the next step is +to decide how much money to allocate to each category. This allocation ensures that every part of your financial life is accounted for and helps you manage your money effectively. -A practical way to determine these amounts is to use the average of at least the last -three months' bank statements. Better yet, it is using the previous six months. -This average provides a realistic estimate of your spending and income patterns, allowing +A practical way to determine these amounts is to use the average of at least the last +three months' bank statements. Better yet, it is using the previous six months. +This average provides a realistic estimate of your spending and income patterns, allowing you to set initial budget values that reflect your financial habits. -For example, if you have € 1 200 to allocate for the month, your budget might look like this: +For example, if you have $ 1 200 to allocate for the month, your budget might look like this: | Categories | Allocated (budgeted) funds | Explanation | |-----------------|-----------------|---------------------------------------------------------------------| -| Groceries | € 300 | This covers your monthly food and household supplies. | -| Gas | € 100 | Allocated for fuel and transportation costs. | -| Dining Out | € 150 | Money set aside for eating out at restaurants or cafes. | -| Clothing | € 100 | Funds for purchasing new clothes or accessories. | -| Entertainment | € 150 | Budget for movies, hobbies, or other leisure activities. | -| Gifts | € 50 | Savings for birthdays, holidays, or special occasions. | -| Personal Care | € 150 | Allocated for health and beauty products or services like haircuts. | -| Savings | € 200 | Money set aside for future needs or emergencies. | -| **TOTAL** | **€ 1 200** | | +| Groceries | $ 300 | This covers your monthly food and household supplies. | +| Gas | $ 100 | Allocated for fuel and transportation costs. | +| Dining Out | $ 150 | Money set aside for eating out at restaurants or cafes. | +| Clothing | $ 100 | Funds for purchasing new clothes or accessories. | +| Entertainment | $ 150 | Budget for movies, hobbies, or other leisure activities. | +| Gifts | $ 50 | Savings for birthdays, holidays, or special occasions. | +| Personal Care | $ 150 | Allocated for health and beauty products or services like haircuts. | +| Savings | $ 200 | Money set aside for future needs or emergencies. | +| **TOTAL** | **$ 1 200** | | -By carefully allocating amounts to each category, you create a clear and realistic budget to help you manage +By carefully allocating amounts to each category, you create a clear and realistic budget to help you manage your finances more effectively and achieve your financial goals. -Remember, these initial values are not set in stone. As you start tracking your expenses, you might -find that some categories need more or less money. This flexibility empowers you to adjust your +Remember, these initial values are not set in stone. As you start tracking your expenses, you might +find that some categories need more or less money. This flexibility empowers you to adjust your budget as needed, putting you in control of your financial situation. @@ -171,60 +171,60 @@ budget as needed, putting you in control of your financial situation. ### 3. Track your spending for each category -With your budget now allocated, the next step is to track your spending diligently. +With your budget now allocated, the next step is to track your spending diligently. This is essential for making the envelope system work effectively. -Each time you make a purchase, add the spending to Actual Budget. While this might seem -like a lot of work initially, it will significantly increase your awareness of your spending habits, +Each time you make a purchase, add the spending to Actual Budget. While this might seem +like a lot of work initially, it will significantly increase your awareness of your spending habits, enabling you to make informed decisions about what and how much to spend. -As you become more accustomed to this budgeting method, you can update Actual Budget less frequently, -such as once a week. This flexibility allows you to adapt the system to your lifestyle. Additionally, +As you become more accustomed to this budgeting method, you can update Actual Budget less frequently, +such as once a week. This flexibility allows you to adapt the system to your lifestyle. Additionally, if supported, you can set up automatic syncing with your bank to streamline the process. Here’s how to do it: -1. **Record every transaction**: Every time you spend money, whether it's buying groceries or paying for gas, - immediately enter the amount into Actual Budget under the appropriate category. This ensures that your budget +1. **Record every transaction**: Every time you spend money, whether it's buying groceries or paying for gas, + immediately enter the amount into Actual Budget under the appropriate category. This ensures that your budget is always up to date. -2. **Analyze spending habits**: Take time each week to review your spending. This will help you identify patterns and make +2. **Analyze spending habits**: Take time each week to review your spending. This will help you identify patterns and make adjustments as needed. This proactive approach can prevent overspending and help you stay on track with your financial goals. -> **Tip**: You don't have to spend each category down to zero each month. If you have money left over, it -means you spent less than planned. Use any leftover funds to pay down debt or add to your emergency fund. +> **Tip**: You don't have to spend each category down to zero each month. If you have money left over, it +means you spent less than planned. Use any leftover funds to pay down debt or add to your emergency fund. Giving any extra money a purpose is key to ensuring the money doesn't go to waste. -By consistently tracking your spending and adjusting your budget as necessary, you'll maintain better control over +By consistently tracking your spending and adjusting your budget as necessary, you'll maintain better control over your finances and work more effectively towards your financial goals. ### 4. Adjust and adapt -Life is full of unexpected twists and turns; your budget should be just as flexible. When you overspend in a -budget category for the month, it’s crucial to adjust and adapt rather than feel defeated. As you adapt your plans +Life is full of unexpected twists and turns; your budget should be just as flexible. When you overspend in a +budget category for the month, it’s crucial to adjust and adapt rather than feel defeated. As you adapt your plans in real life, you can do the same with your budget. -Maybe an unexpected event arose, or you underestimated your expenses. The key is to remain flexible and make +Maybe an unexpected event arose, or you underestimated your expenses. The key is to remain flexible and make necessary adjustments. **How to Adjust Your Budget** 1. **Review your spending**: First, identify where you overspent. Look at your budget categories to see where adjustments are needed. -2. **Reallocate funds**: Move money from categories with surplus funds to cover the overspending. For example, if you budgeted € 100 - for *Eating Out* but spent € 140, find another category with extra funds, like *Clothing* or *Entertainment,* and shift some +2. **Reallocate funds**: Move money from categories with surplus funds to cover the overspending. For example, if you budgeted $ 100 + for *Eating Out* but spent $ 140, find another category with extra funds, like *Clothing* or *Entertainment,* and shift some of that money to cover the difference. -3. **Stay calm and flexible**: Remember, the goal of budgeting is to manage your finances effectively, not to be perfect. +3. **Stay calm and flexible**: Remember, the goal of budgeting is to manage your finances effectively, not to be perfect. Flexibility is key. Adjusting your budget is a normal part of the process. -You can also set up Actual Budget to +You can also set up Actual Budget to [automatically deduct the overspending](/docs/budgeting/#rollover-negative-category-balances) from next month’s funds. Be aware that even if you *can* do something, it does not mean that you *should* do it. -You maintain control over your budget by reallocating funds and avoiding unnecessary stress. This process helps +You maintain control over your budget by reallocating funds and avoiding unnecessary stress. This process helps you understand that budgets are not rigid constraints but flexible tools that can adapt to your changing needs. @@ -235,7 +235,7 @@ you understand that budgets are not rigid constraints but flexible tools that ca ### 4. Prepare for the unexpected -There’s no such thing as a "normal" month when it comes to expenses. Your costs fluctuate throughout the year, +There’s no such thing as a "normal" month when it comes to expenses. Your costs fluctuate throughout the year, often unpredictably. Envelope budgeting helps you prepare for these irregular expenses by adding funds to your categories. @@ -247,72 +247,72 @@ Many people face financial stress because of large, infrequent expenses that cat * Medical expenses * Home repairs -Without planning, these expenses can lead to financial crises, forcing you to dip into savings or debt. +Without planning, these expenses can lead to financial crises, forcing you to dip into savings or debt. Envelope budgeting encourages proactive saving, so you’re never caught off guard. -Some regular expenses you already know about. You can plan for those and set aside a smaller amount of money each -month to cover these rather than having to put up the larger amount when the bill comes. +Some regular expenses you already know about. You can plan for those and set aside a smaller amount of money each +month to cover these rather than having to put up the larger amount when the bill comes. **How to plan for irregular expenses** -1. **Identify Irregular Expenses**: List of all large, infrequent expenses you expect throughout the year. +1. **Identify Irregular Expenses**: List of all large, infrequent expenses you expect throughout the year. These could be anything from insurance premiums to holiday gifts. -2. **Break Down Annual Costs**: Calculate the total annual cost for each expense. -3. **Divide into Monthly Savings**: Divide the annual cost by 12 to determine how much you need to save each month. +2. **Break Down Annual Costs**: Calculate the total annual cost for each expense. +3. **Divide into Monthly Savings**: Divide the annual cost by 12 to determine how much you need to save each month. 4. **Create Specific Categories**: For each irregular expense, set up specific categories in Actual Budget. Label them clearly, such as “Car Insurance,” “Holiday Gifts,” or “Home Repairs.” -5. **Allocate Funds Monthly**: Allocate the calculated amount to these categories each month. Treat this allocation +5. **Allocate Funds Monthly**: Allocate the calculated amount to these categories each month. Treat this allocation as a fixed expense to ensure you consistently save for these future costs. -**Example:** Let’s say your annual insurance costs are € 2 400. Instead of scrambling to find this amount when the bill -arrives, you can set aside € 200 each month. By the time the bill is due, you’ll have the total amount saved and ready, +**Example:** Let’s say your annual insurance costs are $ 2 400. Instead of scrambling to find this amount when the bill +arrives, you can set aside $ 200 each month. By the time the bill is due, you’ll have the total amount saved and ready, avoiding the need to dip into savings or incur debt. ## Using Actual Budget with debit cards is better than using cash -While the traditional envelope system relies on cash, using Actual Budget with debit and credit +While the traditional envelope system relies on cash, using Actual Budget with debit and credit cards offers significant advantages. Here's why using cards can be more effective: -**Ease of tracking**: When you use debit or credit cards, all your transactions are automatically recorded -in your bank statement. Bank and credit card statement statements provide a detailed history of your -transactions, including the date, amount, and merchant. This makes it much easier to track your spending without -having (to remember) to manually enter each transaction whenever you make a purchase or get income. -Most financial institutions will let you export your transactions as CSV files, +**Ease of tracking**: When you use debit or credit cards, all your transactions are automatically recorded +in your bank statement. Bank and credit card statement statements provide a detailed history of your +transactions, including the date, amount, and merchant. This makes it much easier to track your spending without +having (to remember) to manually enter each transaction whenever you make a purchase or get income. +Most financial institutions will let you export your transactions as CSV files, which can be [imported into Actual Budget](/docs/transactions/importing). Using cards will save you time and reduce the risk of errors. -**Automatic import**: Actual Budget can [sync directly with your bank accounts](/docs/advanced/bank-sync). -Every time you use your debit or credit card, the transaction details are automatically imported into +**Automatic import**: Actual Budget can [sync directly with your bank accounts](/docs/advanced/bank-sync). +Every time you use your debit or credit card, the transaction details are automatically imported into your budget categories. You no longer need to keep physical receipts or manually log each expense. Read more about [managing credit cards](/docs/budgeting/credit-cards) with Actual Budget. -## An detailed example of how to do Zero-Sum budgeting +## An detailed example of how to do Zero-Sum budgeting -Let's say your total monthly income of January is € 1 200. You get your money on the 1st. Using Zero-Based Budgeting, -you will allocate every unit of this income to different categories, ensuring that nothing is left unassigned. This is known as +Let's say your total monthly income of January is $ 1 200. You get your money on the 1st. Using Zero-Based Budgeting, +you will allocate every unit of this income to different categories, ensuring that nothing is left unassigned. This is known as the *Total Allocation*. -Here's an example of how you could split the € 1 200: +Here's an example of how you could split the $ 1 200: | Categories | Income | Explanation | |-----------------|-----------------|---------------------------------------------------------------------| -| Groceries | € 300 | This covers your monthly food and household supplies. | -| Gas | € 100 | Allocated for fuel and transportation costs. | -| Dining Out | € 150 | Money set aside for eating out at restaurants or cafes. | -| Clothing | € 100 | Funds for purchasing new clothes or accessories. | -| Entertainment | € 150 | Budget for movies, hobbies, or other leisure activities. | -| Gifts | € 50 | Savings for birthdays, holidays, or special occasions. | -| Personal Care | € 150 | Allocated for health and beauty products or services like haircuts. | -| Savings | € 200 | Money set aside for future needs or emergencies. | -| **TOTAL** | **€ 1 200** | | +| Groceries | $ 300 | This covers your monthly food and household supplies. | +| Gas | $ 100 | Allocated for fuel and transportation costs. | +| Dining Out | $ 150 | Money set aside for eating out at restaurants or cafes. | +| Clothing | $ 100 | Funds for purchasing new clothes or accessories. | +| Entertainment | $ 150 | Budget for movies, hobbies, or other leisure activities. | +| Gifts | $ 50 | Savings for birthdays, holidays, or special occasions. | +| Personal Care | $ 150 | Allocated for health and beauty products or services like haircuts. | +| Savings | $ 200 | Money set aside for future needs or emergencies. | +| **TOTAL** | **$ 1 200** | | -We now see that all € 1 200 are assigned to specific categories, ensuring that every unit of your income has a purpose. +We now see that all $ 1 200 are assigned to specific categories, ensuring that every unit of your income has a purpose. ### Week 1 budget tracking @@ -321,52 +321,52 @@ Let's track the expenses in Week 1 and calculate the available amounts for Week | Categories | Budget Week 1 | Spending Week 1 | Available for Week 2 | |-----------------|------------------------|--------------------------|-----------------------------| -| Groceries | € 300 | € 123 | € 177 | -| Gas | € 100 | € 40 | € 60 | -| Dining Out | € 150 | € 10 | € 140 | -| Clothing | € 100 | € 34 | € 66 | -| Entertainment | € 150 | € 30 | € 120 | -| Gifts | € 50 | € 45 | € 5 | -| Personal Care | € 150 | € 75 | € 75 | - -In this table, the "Available in Week 2" column shows the remaining budget after subtracting the Week 1 -spending from the initial budget. This helps you see how much you have left to spend in each category for +| Groceries | $ 300 | $ 123 | $ 177 | +| Gas | $ 100 | $ 40 | $ 60 | +| Dining Out | $ 150 | $ 10 | $ 140 | +| Clothing | $ 100 | $ 34 | $ 66 | +| Entertainment | $ 150 | $ 30 | $ 120 | +| Gifts | $ 50 | $ 45 | $ 5 | +| Personal Care | $ 150 | $ 75 | $ 75 | + +In this table, the "Available in Week 2" column shows the remaining budget after subtracting the Week 1 +spending from the initial budget. This helps you see how much you have left to spend in each category for the next week. ### Week 2 budget tracking -In week 2 you, are invited to a housewarming party, and you want to bring a gift. In the *Available in Week 2* we -saw that you only had € 5 to spend. This does not go a long way - but you found a gift costing only € 10. +In week 2 you, are invited to a housewarming party, and you want to bring a gift. In the *Available in Week 2* we +saw that you only had $ 5 to spend. This does not go a long way - but you found a gift costing only $ 10. Let's track the expenses in Week 2 and calculate the available amounts for Week 3. | Categories | Available Week 2 | Spending Week 2 | Available in Week 3 | |-----------------|---------------------------|--------------------------|-----------------------------| -| Groceries | € 177 | € 98 | € 79 | -| Gas | € 60 | € 34 | € 26 | -| Dining Out | € 140 | € 30 | € 110 | -| Clothing | € 66 | € 34 | € 32 | -| Entertainment | € 120 | € 30 | € 90 | -| Gifts | € 5 | € 10 | € -5 | -| Personal Care | € 75 | € 40 | € 35 | +| Groceries | $ 177 | $ 98 | $ 79 | +| Gas | $ 60 | $ 34 | $ 26 | +| Dining Out | $ 140 | $ 30 | $ 110 | +| Clothing | $ 66 | $ 34 | $ 32 | +| Entertainment | $ 120 | $ 30 | $ 90 | +| Gifts | $ 5 | $ 10 | $ -5 | +| Personal Care | $ 75 | $ 40 | $ 35 | -Now you are in deficit in the *Gift* category. +Now you are in deficit in the *Gift* category. -You should not really have a deficit in your budget, so you exercise the **Flexibility** principle by reducing money -from one of the other categories. You do not want to use your savings - as this is a **Goal**. *Dining out* is -not essential so you move 5 from *Available Week 2* into *Gifts*. +You should not really have a deficit in your budget, so you exercise the **Flexibility** principle by reducing money +from one of the other categories. You do not want to use your savings - as this is a **Goal**. *Dining out* is +not essential so you move 5 from *Available Week 2* into *Gifts*. ### Updated week 3 availability -After adjusting the budget to address the deficit in the Gifts category by reallocating funds from Dining Out, +After adjusting the budget to address the deficit in the Gifts category by reallocating funds from Dining Out, here is the new available budget in Week 3: | Categories | Available Week 2 | Spending Week 2 | Available in Week 3 | |-----------------|---------------------------|--------------------------|-----------------------------| -| Dining Out | € 135 | € 30 | € 105 | -| Gifts | € 5 | € 10 | € 0 | +| Dining Out | $ 135 | $ 30 | $ 105 | +| Gifts | $ 5 | $ 10 | $ 0 | -This updated table reflects the reallocation of € 5 from the *Dining Out* category to cover the deficit in the *Gifts* +This updated table reflects the reallocation of $ 5 from the *Dining Out* category to cover the deficit in the *Gifts* category, ensuring that all budgets remain positive in Week 3. ### Week 3 budget tracking @@ -375,91 +375,91 @@ Let's track the expenses in Week 3 and calculate the available amounts for Week | Categories | Available Week 3 | Spending Week 3 | Available in Week 4 | |-----------------|---------------------------|--------------------------|-----------------------------| -| Groceries | € 79 | € 63 | € 16 | -| Gas | € 26 | € 12 | € 14 | -| Dining Out | € 105 | € 20 | € 85 | -| Clothing | € 32 | € 0 | € 32 | -| Entertainment | € 90 | € 35 | € 55 | -| Gifts | € 0 | € 0 | € 0 | -| Personal Care | € 35 | € 38 | € -3 | +| Groceries | $ 79 | $ 63 | $ 16 | +| Gas | $ 26 | $ 12 | $ 14 | +| Dining Out | $ 105 | $ 20 | $ 85 | +| Clothing | $ 32 | $ 0 | $ 32 | +| Entertainment | $ 90 | $ 35 | $ 55 | +| Gifts | $ 0 | $ 0 | $ 0 | +| Personal Care | $ 35 | $ 38 | $ -3 | Note that Personal Care is in deficit, so you must reallocate funds from another category to cover this deficit. -Luckily, this week, we won € 37 at the lottery. We will allocate all of these € 37 wisely. The most important thing is to take +Luckily, this week, we won $ 37 at the lottery. We will allocate all of these $ 37 wisely. The most important thing is to take care of the deficit. We now exercise both the *Flexibility* and the *Total Allocation* principles. -What do we do with the rest of the money we won? We can add them to the Savings category. We see that we are -probably going to spend more than 16 on Groceries - and there are no more parties which requires Gifts in the coming week. +What do we do with the rest of the money we won? We can add them to the Savings category. We see that we are +probably going to spend more than 16 on Groceries - and there are no more parties which requires Gifts in the coming week. We decide to split the rest of the money between Groceries and Savings. | Categories | Available Week 3 | Spending Week 3 | Adjustments | Available in Week 4 | |-----------------|---------------------------|--------------------------|-------------|-----------------------------| -| Groceries | € 79 | € 63 | € +24 | € 40 | -| Gas | € 26 | € 12 | | € 14 | -| Dining Out | € 105 | € 20 | | € 85 | -| Clothing | € 32 | € 0 | | € 32 | -| Entertainment | € 90 | € 35 | | € 55 | -| Gifts | € 0 | € 0 | | € 0 | -| Personal Care | € 35 | € 38 | € +3 | € 0 | -| Savings | € 200 | € 0 | € +10 | € 210 | - -In this revised table, the deficit in Personal Care has been addressed, and the remaining lottery money has been allocated +| Groceries | $ 79 | $ 63 | $ +24 | $ 40 | +| Gas | $ 26 | $ 12 | | $ 14 | +| Dining Out | $ 105 | $ 20 | | $ 85 | +| Clothing | $ 32 | $ 0 | | $ 32 | +| Entertainment | $ 90 | $ 35 | | $ 55 | +| Gifts | $ 0 | $ 0 | | $ 0 | +| Personal Care | $ 35 | $ 38 | $ +3 | $ 0 | +| Savings | $ 200 | $ 0 | $ +10 | $ 210 | + +In this revised table, the deficit in Personal Care has been addressed, and the remaining lottery money has been allocated to Groceries and Savings to better prepare for the coming week. -### Week 4 budget tracking +### Week 4 budget tracking Let's track the expenses in Week 4 and calculate the available amounts for next month | Categories | Available Week 4 | Spending Week 4 | Available in Week 5 (February) | |-----------------|---------------------------|--------------------------|-----------------------------| -| Groceries | € 40 | € 38 | € 2 | -| Gas | € 14 | € 0 | € 14 | -| Dining Out | € 85 | € 45 | € 40 | -| Clothing | € 32 | € 16 | € 16 | -| Entertainment | € 55 | € 17 | € 38 | -| Gifts | € 0 | € 0 | € 0 | -| Personal Care | € 0 | € 0 | € 0 | +| Groceries | $ 40 | $ 38 | $ 2 | +| Gas | $ 14 | $ 0 | $ 14 | +| Dining Out | $ 85 | $ 45 | $ 40 | +| Clothing | $ 32 | $ 16 | $ 16 | +| Entertainment | $ 55 | $ 17 | $ 38 | +| Gifts | $ 0 | $ 0 | $ 0 | +| Personal Care | $ 0 | $ 0 | $ 0 | ### Preparing for February: Learnings About Our Spending Habits in January -- We had to adjust the Groceries budget when we won the lottery. Without this, we would have had a deficit in this category. +- We had to adjust the Groceries budget when we won the lottery. Without this, we would have had a deficit in this category. Therefore, we need to increase next month's budget for Groceries. - We used more money than was allocated for gifts, so we should increase the budget for this category next month. - We spent much less on Dining Out than we allocated, so we can reduce this budget for February. -- We will also increase the Gas budget by € 10 because if we had to fill gas in week 4, we would have faced a +- We will also increase the Gas budget by $ 10 because if we had to fill gas in week 4, we would have faced a deficit and need to cover it from other categories. The rest we put into our Savings category | Categories | Available after week 4 | February Budget | To be allocated | |-----------------|------------------------|-----------------|-----------------| -| Groceries | € 2 | € 350 | € 348 | -| Gas | € 14 | € 110 | € 96 | -| Dining Out | € 40 | € 150 | € 110 | -| Clothing | € 16 | € 100 | € 84 | -| Entertainment | € 38 | € 150 | € 112 | -| Gifts | € 0 | € 75 | € 75 | -| Personal Care | €  0 | € 150 | € 150 | - -The sum of to be allocated is € 975. The monthly income for February is € 1200. -€ 1200 - € 975 = € 225 is added to the Savings category. This is € 25 more than last month. +| Groceries | $ 2 | $ 350 | $ 348 | +| Gas | $ 14 | $ 110 | $ 96 | +| Dining Out | $ 40 | $ 150 | $ 110 | +| Clothing | $ 16 | $ 100 | $ 84 | +| Entertainment | $ 38 | $ 150 | $ 112 | +| Gifts | $ 0 | $ 75 | $ 75 | +| Personal Care | $  0 | $ 150 | $ 150 | + +The sum of to be allocated is $ 975. The monthly income for February is $ 1200. +$ 1200 - $ 975 = $ 225 is added to the Savings category. This is $ 25 more than last month. A job well done of not overspending more than necessary! -This revised budget considers the adjustments based on our spending habits in January, +This revised budget considers the adjustments based on our spending habits in January, ensuring a more accurate and adequate budget for February | Categories | Available at the start of February | |-----------------|------------------------| -| Groceries | € 350 | -| Gas | € 110 | -| Dining Out | € 150 | -| Clothing | € 100 | -| Entertainment | € 150 | -| Gifts | € 75 | -| Personal Care | € 150 | +| Groceries | $ 350 | +| Gas | $ 110 | +| Dining Out | $ 150 | +| Clothing | $ 100 | +| Entertainment | $ 150 | +| Gifts | $ 75 | +| Personal Care | $ 150 | From ae26c2000f5d5a3c3e21fa51e6f250ad39166f02 Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Fri, 3 Jan 2025 08:18:25 +0100 Subject: [PATCH 07/11] =?UTF-8?q?Change=20currency=20symbol=20from=20?= =?UTF-8?q?=E2=82=AC=20to=20$=20due=20to=20standarization=20on=20US=20spel?= =?UTF-8?q?ling.?= MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit --- docs/budgeting/joint-accounts.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/budgeting/joint-accounts.md b/docs/budgeting/joint-accounts.md index 861836bd8..1e7d083e2 100644 --- a/docs/budgeting/joint-accounts.md +++ b/docs/budgeting/joint-accounts.md @@ -73,7 +73,7 @@ what are your common expenses regarding groceries, utility bills, dining out, gi Both will then contribute their share of the joint expenses. This is called _planned income_. But how do you find your just share? The most just way to do this is by percentage of normal income per partner. -If Bob makes € 4000 a month and Alice makes € 6000, the total income is € 10 000. Out of +If Bob makes $ 4000 a month and Alice makes $ 6000, the total income is $ 10 000. Out of this, Bob will contribute 40% to the joint expenses. To compute the percentage for Bob: 400 (Bob's income) * 100 / 10000 (total income). Alice's percentage is 60%, found by subtracting Bob's percentage from 100. From d3d8c70e11be9b6ad279c9eb19d9668a2c94bb9c Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Sat, 4 Jan 2025 10:08:54 +0100 Subject: [PATCH 08/11] Amendning after feedback from @youngcw --- docs/getting-started/envelope-budgeting.md | 10 +++++----- 1 file changed, 5 insertions(+), 5 deletions(-) diff --git a/docs/getting-started/envelope-budgeting.md b/docs/getting-started/envelope-budgeting.md index 21447e559..baea74126 100644 --- a/docs/getting-started/envelope-budgeting.md +++ b/docs/getting-started/envelope-budgeting.md @@ -29,7 +29,7 @@ This gives every unit of currency a purpose, ensuring that income is used effici A popular saying is all your money should have a "job". One dollar (or whatever your currency is) may be used for Netflix while the next dollar may be for savings. -Giving every dollar a job forces you to be honest about where you money is going because each dollar can +Giving every dollar a job forces you to be honest about where your money is going because each dollar can only have one job. @@ -255,7 +255,7 @@ month to cover these rather than having to put up the larger amount when the bil **How to plan for irregular expenses** -1. **Identify Irregular Expenses**: List of all large, infrequent expenses you expect throughout the year. +1. **Identify Irregular Expenses**: Make a list of all large, infrequent expenses you expect throughout the year. These could be anything from insurance premiums to holiday gifts. 2. **Break Down Annual Costs**: Calculate the total annual cost for each expense. 3. **Divide into Monthly Savings**: Divide the annual cost by 12 to determine how much you need to save each month. @@ -278,7 +278,7 @@ cards offers significant advantages. Here's why using cards can be more effectiv **Ease of tracking**: When you use debit or credit cards, all your transactions are automatically recorded -in your bank statement. Bank and credit card statement statements provide a detailed history of your +in your bank statement. Bank and credit card statements provide a detailed history of your transactions, including the date, amount, and merchant. This makes it much easier to track your spending without having (to remember) to manually enter each transaction whenever you make a purchase or get income. Most financial institutions will let you export your transactions as CSV files, @@ -291,10 +291,10 @@ your budget categories. You no longer need to keep physical receipts or manually Read more about [managing credit cards](/docs/budgeting/credit-cards) with Actual Budget. -## An detailed example of how to do Zero-Sum budgeting +## A detailed example of how to do Zero-Sum budgeting -Let's say your total monthly income of January is $ 1 200. You get your money on the 1st. Using Zero-Based Budgeting, +Let's say your total monthly income in January is $ 1 200. You get your money on the 1st. Using Zero-Based Budgeting, you will allocate every unit of this income to different categories, ensuring that nothing is left unassigned. This is known as the *Total Allocation*. From 3621b01aef4f74265f0702e57d70a1d017af88bd Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Sun, 5 Jan 2025 07:58:20 +0100 Subject: [PATCH 09/11] Added $ symbol before any monetary unit. Added , symbol as the thousand separator. Added small style guide to the writing-docs.md. --- docs/accounts/reconciliation.md | 2 +- docs/budgeting/credit-cards/carrying-debt.md | 2 +- docs/budgeting/joint-accounts.md | 2 +- docs/contributing/writing-docs.md | 9 +++ docs/getting-started/envelope-budgeting.md | 84 +++++++------------- 5 files changed, 39 insertions(+), 60 deletions(-) diff --git a/docs/accounts/reconciliation.md b/docs/accounts/reconciliation.md index a72430e97..31061f589 100644 --- a/docs/accounts/reconciliation.md +++ b/docs/accounts/reconciliation.md @@ -16,7 +16,7 @@ Click the lock icon in the right hand corner of the account ledger. ![](/img/reconcile/reconcile-11.png) -Let's imagine that we have just checked our account balance for our Ally Savings account and the current balance is $1229.18. We enter the balance we want to match into the Reconciliation tool and press **Reconcile**. +Let's imagine that we have just checked our account balance for our Ally Savings account and the current balance is $ 1,229.18. We enter the balance we want to match into the Reconciliation tool and press **Reconcile**. ![](/img/reconcile/reconcile-2.png) diff --git a/docs/budgeting/credit-cards/carrying-debt.md b/docs/budgeting/credit-cards/carrying-debt.md index 459fcac99..9ad9a2979 100644 --- a/docs/budgeting/credit-cards/carrying-debt.md +++ b/docs/budgeting/credit-cards/carrying-debt.md @@ -6,4 +6,4 @@ If you have an existing credit card debt that you need to track and gradually pa The simplest way to track preexisting credit card debt in Actual is to create a **Credit Card** category and set it to **Rollover overspending**. When you add your existing starting balance and any preexisting transactions to your credit card account you need to ensure that the category of those transactions is set to **Credit Card**. That way you can at any time look at the **Credit Card** category balance to see the status of your preexisting debt, and you can ensure that it's getting smaller over time. -Each month when you do your budgeting, _after_ you've accounted for all other necessary expense categories, you allocate however much you want to pay down on that debt into the **Budgeted** column of the **Credit Card** category. Then when you go to pay your credit card bill you can easily find out how much you should actually pay by taking the **Credit Card** account balance and turning it positive and then adding the current **Credit Card** category balance to it. If your account balance is -5500 and your category balance is -4500 then you know that you need to pay off 5500 - 4500 = 1000. This amount will be greater than what you had put into the **Budgeted** column in case you're simultaneously following the [Within the Budget](./index.md) strategy of pre-funding new credit card purchases, and you can without worries pay off the calculated amount knowing that the money has already been explicitly set aside for this specific bill. +Each month when you do your budgeting, _after_ you've accounted for all other necessary expense categories, you allocate however much you want to pay down on that debt into the **Budgeted** column of the **Credit Card** category. Then when you go to pay your credit card bill you can easily find out how much you should actually pay by taking the **Credit Card** account balance and turning it positive and then adding the current **Credit Card** category balance to it. If your account balance is $ -5,500 and your category balance is $ -4,500 then you know that you need to pay off 5500 - 4500 = 1000. This amount will be greater than what you had put into the **Budgeted** column in case you're simultaneously following the [Within the Budget](./index.md) strategy of pre-funding new credit card purchases, and you can without worries pay off the calculated amount knowing that the money has already been explicitly set aside for this specific bill. diff --git a/docs/budgeting/joint-accounts.md b/docs/budgeting/joint-accounts.md index ee649d9d3..462590e10 100644 --- a/docs/budgeting/joint-accounts.md +++ b/docs/budgeting/joint-accounts.md @@ -73,7 +73,7 @@ what are your common expenses regarding groceries, utility bills, dining out, gi Both will then contribute their share of the joint expenses. This is called _planned income_. But how do you find your just share? The most just way to do this is by percentage of normal income per partner. -If Bob makes $ 4000 a month and Alice makes $ 6000, the total income is $ 10 000. Out of +If Bob makes $ 4,000 a month and Alice makes $ 6,000, the total income is $ 10,000. Out of this, Bob will contribute 40% to the joint expenses. To compute the percentage for Bob: 400 (Bob's income) * 100 / 10000 (total income). Alice's percentage is 60%, found by subtracting Bob's percentage from 100. diff --git a/docs/contributing/writing-docs.md b/docs/contributing/writing-docs.md index b3777fad0..344ca58c2 100644 --- a/docs/contributing/writing-docs.md +++ b/docs/contributing/writing-docs.md @@ -139,6 +139,15 @@ Docusaurus 2 provides translation using [i18n](https://docusaurus.io/docs/i18n/i * **Time Neutral**: Use present voice, unless documentation is for experimental or unreleased features. Where time references are made, remove them upon release or removal of the feature. Example: _Filters can be used..._ instead of _As of June 2022 update, you can..._. + +### A Short Style Guide + +* Prefix monetary values with the $ (dollar) sign. +* Use the , (comma) sign as the thousands separator. +* Calculations should never have the dollar prefix, nor the thousand separator signs. +* All headings must use [Title Case](https://en.wikipedia.org/wiki/Title_case) using the Chicago Manual of Style. + + ### Format * **Keep paragraphs short and focused**. Each paragraph should convey a single idea or concept. diff --git a/docs/getting-started/envelope-budgeting.md b/docs/getting-started/envelope-budgeting.md index baea74126..c0dc4f8be 100644 --- a/docs/getting-started/envelope-budgeting.md +++ b/docs/getting-started/envelope-budgeting.md @@ -142,19 +142,19 @@ This average provides a realistic estimate of your spending and income patterns, you to set initial budget values that reflect your financial habits. -For example, if you have $ 1 200 to allocate for the month, your budget might look like this: +For example, if you have $ 1,200 to allocate for the month, your budget might look like this: | Categories | Allocated (budgeted) funds | Explanation | -|-----------------|-----------------|---------------------------------------------------------------------| -| Groceries | $ 300 | This covers your monthly food and household supplies. | -| Gas | $ 100 | Allocated for fuel and transportation costs. | -| Dining Out | $ 150 | Money set aside for eating out at restaurants or cafes. | -| Clothing | $ 100 | Funds for purchasing new clothes or accessories. | -| Entertainment | $ 150 | Budget for movies, hobbies, or other leisure activities. | -| Gifts | $ 50 | Savings for birthdays, holidays, or special occasions. | -| Personal Care | $ 150 | Allocated for health and beauty products or services like haircuts. | -| Savings | $ 200 | Money set aside for future needs or emergencies. | -| **TOTAL** | **$ 1 200** | | +|-----------------|----------------------------|---------------------------------------------------------------------| +| Groceries | $ 300 | This covers your monthly food and household supplies. | +| Gas | $ 100 | Allocated for fuel and transportation costs. | +| Dining Out | $ 150 | Money set aside for eating out at restaurants or cafes. | +| Clothing | $ 100 | Funds for purchasing new clothes or accessories. | +| Entertainment | $ 150 | Budget for movies, hobbies, or other leisure activities. | +| Gifts | $ 50 | Savings for birthdays, holidays, or special occasions. | +| Personal Care | $ 150 | Allocated for health and beauty products or services like haircuts. | +| Savings | $ 200 | Money set aside for future needs or emergencies. | +| **TOTAL** | **$ 1,200** | | @@ -265,7 +265,7 @@ month to cover these rather than having to put up the larger amount when the bil as a fixed expense to ensure you consistently save for these future costs. -**Example:** Let’s say your annual insurance costs are $ 2 400. Instead of scrambling to find this amount when the bill +**Example:** Let’s say your annual insurance costs are $ 2,400. Instead of scrambling to find this amount when the bill arrives, you can set aside $ 200 each month. By the time the bill is due, you’ll have the total amount saved and ready, avoiding the need to dip into savings or incur debt. @@ -294,25 +294,25 @@ Read more about [managing credit cards](/docs/budgeting/credit-cards) with Actua ## A detailed example of how to do Zero-Sum budgeting -Let's say your total monthly income in January is $ 1 200. You get your money on the 1st. Using Zero-Based Budgeting, +Let's say your total monthly income in January is $ 1,200. You get your money on the 1st. Using Zero-Based Budgeting, you will allocate every unit of this income to different categories, ensuring that nothing is left unassigned. This is known as the *Total Allocation*. -Here's an example of how you could split the $ 1 200: +Here's an example of how you could split the $ 1,200: -| Categories | Income | Explanation | -|-----------------|-----------------|---------------------------------------------------------------------| -| Groceries | $ 300 | This covers your monthly food and household supplies. | -| Gas | $ 100 | Allocated for fuel and transportation costs. | -| Dining Out | $ 150 | Money set aside for eating out at restaurants or cafes. | -| Clothing | $ 100 | Funds for purchasing new clothes or accessories. | -| Entertainment | $ 150 | Budget for movies, hobbies, or other leisure activities. | -| Gifts | $ 50 | Savings for birthdays, holidays, or special occasions. | -| Personal Care | $ 150 | Allocated for health and beauty products or services like haircuts. | -| Savings | $ 200 | Money set aside for future needs or emergencies. | -| **TOTAL** | **$ 1 200** | | +| Categories | Income | Explanation | +|-----------------|-------------|---------------------------------------------------------------------| +| Groceries | $ 300 | This covers your monthly food and household supplies. | +| Gas | $ 100 | Allocated for fuel and transportation costs. | +| Dining Out | $ 150 | Money set aside for eating out at restaurants or cafes. | +| Clothing | $ 100 | Funds for purchasing new clothes or accessories. | +| Entertainment | $ 150 | Budget for movies, hobbies, or other leisure activities. | +| Gifts | $ 50 | Savings for birthdays, holidays, or special occasions. | +| Personal Care | $ 150 | Allocated for health and beauty products or services like haircuts. | +| Savings | $ 200 | Money set aside for future needs or emergencies. | +| **TOTAL** | **$ 1,200** | | -We now see that all $ 1 200 are assigned to specific categories, ensuring that every unit of your income has a purpose. +We now see that all $ 1,200 are assigned to specific categories, ensuring that every unit of your income has a purpose. ### Week 1 budget tracking @@ -434,34 +434,4 @@ deficit and need to cover it from other categories. The rest we put into our Savings category | Categories | Available after week 4 | February Budget | To be allocated | -|-----------------|------------------------|-----------------|-----------------| -| Groceries | $ 2 | $ 350 | $ 348 | -| Gas | $ 14 | $ 110 | $ 96 | -| Dining Out | $ 40 | $ 150 | $ 110 | -| Clothing | $ 16 | $ 100 | $ 84 | -| Entertainment | $ 38 | $ 150 | $ 112 | -| Gifts | $ 0 | $ 75 | $ 75 | -| Personal Care | $  0 | $ 150 | $ 150 | - -The sum of to be allocated is $ 975. The monthly income for February is $ 1200. -$ 1200 - $ 975 = $ 225 is added to the Savings category. This is $ 25 more than last month. -A job well done of not overspending more than necessary! - - -This revised budget considers the adjustments based on our spending habits in January, -ensuring a more accurate and adequate budget for February - -| Categories | Available at the start of February | -|-----------------|------------------------| -| Groceries | $ 350 | -| Gas | $ 110 | -| Dining Out | $ 150 | -| Clothing | $ 100 | -| Entertainment | $ 150 | -| Gifts | $ 75 | -| Personal Care | $ 150 | - - - - -[^1]: Another name for this type of budgeting is Zero-Based Budgeting. +|-----------------|---------------------- From 33648a4e801db0e44be82a0f467dd702d1b128c5 Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Sun, 5 Jan 2025 07:59:32 +0100 Subject: [PATCH 10/11] Amended style guide to the writing-docs.md to make a full sentence. --- docs/contributing/writing-docs.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/docs/contributing/writing-docs.md b/docs/contributing/writing-docs.md index 344ca58c2..5445ece16 100644 --- a/docs/contributing/writing-docs.md +++ b/docs/contributing/writing-docs.md @@ -143,9 +143,9 @@ Docusaurus 2 provides translation using [i18n](https://docusaurus.io/docs/i18n/i ### A Short Style Guide * Prefix monetary values with the $ (dollar) sign. -* Use the , (comma) sign as the thousands separator. +* Use the , (comma) sign as the thousands separator. * Calculations should never have the dollar prefix, nor the thousand separator signs. -* All headings must use [Title Case](https://en.wikipedia.org/wiki/Title_case) using the Chicago Manual of Style. +* All headings must use [Title Case](https://en.wikipedia.org/wiki/Title_case) using the Chicago Manual of Style rule set. ### Format From 6f39817dc3494ccd26ccaeb1d8ffcefababba54c Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Ruben=20Olsen=20L=C3=A6rk?= Date: Sun, 5 Jan 2025 08:00:24 +0100 Subject: [PATCH 11/11] Fixed spelling: thousands' --- docs/contributing/writing-docs.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/docs/contributing/writing-docs.md b/docs/contributing/writing-docs.md index 5445ece16..cd3e98ff5 100644 --- a/docs/contributing/writing-docs.md +++ b/docs/contributing/writing-docs.md @@ -143,7 +143,7 @@ Docusaurus 2 provides translation using [i18n](https://docusaurus.io/docs/i18n/i ### A Short Style Guide * Prefix monetary values with the $ (dollar) sign. -* Use the , (comma) sign as the thousands separator. +* Use the , (comma) sign as the thousands' separator. * Calculations should never have the dollar prefix, nor the thousand separator signs. * All headings must use [Title Case](https://en.wikipedia.org/wiki/Title_case) using the Chicago Manual of Style rule set.