Arragnged overdraft - used monthly

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I have an arranged overdraft of £2000. I am in this every month, eventually it will reduce, however, I need to still use the majority of this overdraft to pay monthly bills etc. When my husband and myself get paid into our joint account we will have a balance in the black of eg £2400. however we were jointly paid £4500.
I need to know how much of my overdraft i still have available each month and that it also reconciles with the actual bank balance.
from looking at this app I have no visibility of this buffer zone. it just shows me that i have over spent as soon as I pass £0.00, and therefore I'm blind to know how much of my £2000.00 I can still go into.
I hope this makes sense - is there a way to monitor this?
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Emma Shrubsole

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  • unsure

Posted 1 year ago

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Telt1910

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Emma, do you use Accounts, or are you using one account for all your accounts (free version). If you use accounts, your negative bank account balance should show you how far in you are. This is totally separate from your envelope balances.
Another way is to fill your envelopes with more than what is in unallocated, and unallocated is your total overdraft. This might not give you an accurate overdraft balance if you use other accounts.
Third way that is more cumbersome, but keeps your overdraft separate and documented, is to use a credit account as your overdraft account. Whenever the bank taps your overdraft, you create a transfer transaction from your overdraft to your bank account . When you fund your bank account, you transfer the money bank to the overdraft account so that it returns to zero balance.
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Wayne Woodbury

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Emma, I think the first and best way is to make sure you stick to your budget.  Goodbudget lists your overall envelope balance at the top of the lists of envelopes.  It also lists the balance of your accounts on the Accounts page.  These two balances should always match.  As long as you stick to your budget, your envelope balance should never be less than -2000.00.  If it goes below that, then you will know that you have depleted your overdraft.

If you don't use the paid version of Goodbudget, I recommend you get it.  This allows you to set up multiple accounts.  I also have an overdraft account that transfers money into my checking account automatically.  An overdraft account is the same as any credit card, so you can set it up as a credit account in Goodbudget and track the balance like you would any other credit card.  The difficulty is if the transfer from your overdraft to your checking account is automatic, you have to watching your account balances to know when those transactions occur so that you can record them.  This also requires that you faithfully record every transaction when they occur.

If you do not have the paid version, let me just say that I found the small fee to be well worth it as Goodbudget helped me save hundreds in overspending by helping me track my spending better.  I've never regretted paying fee.

It sounds like you are doing the right things to get out of the hole you are in.  Your situation is all too familiar to me.  There is nothing like the feeling of getting on top of your finances.  Good luck.

Wayne