Transfer or expense?

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  • Updated 1 year ago
I tend to overthink things and this might be the case but I just want to see the best way of doing something. 
I pay all bills on the 1st of the month. Any funds left over after everything has been budgeted for the month I put in an envelope called "Surplus". Currently this surplus is in my bank's checking account and i'm going to transfer it to my bank's savings account.

My first thought is to transfer it in Goodbudget thus mirroring what I did in my banking app. So obviously doing so doesn't mean my envelope balance has changed so even though the funds are in a different account, the Surplus envelope still retains the balance. All that I understand.

My question is, let's say in a couple weeks I want to purchase something from that surplus, in other words, I didn't budget for it per se, but hey, I've got some extra money to buy it.  At that point, I would enter it as a transaction in my surplus envelope, but that isn't going to be helpful down the road in my graphs and reports. It will just show  up as X amount of dollars spent in the surplus category. What if I want the purchased item to show up in another category?
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HFLTV

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Posted 1 year ago

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Alex Park, Official Rep

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Hi HFLTV,

It sounds like you're saying you want to spend funds that are in your Surplus Envelope, but want it to show in your Reports with more information. In that case, what I would suggest is recording the purchase out of whatever Envelope it would be normally categorized in, and then using an Envelope Transfer to move the requisite funds from the Surplus Envelope to that other Envelope.

For example, let's say you're really hungry one day and want to buy more groceries, so you decide to spend some surplus money on more groceries. After you record the 50$ spending to your Groceries Envelope, you can do an Envelope Transfer of 50$ to the Groceries Envelope from your Surplus Envelope, allowing you to see that 50$ recorded to Groceries in your Reports, and also have that money (technically) drained from your Surplus Envelope.

Hope that helps!