I would like to be sure my ‘budget represents reality’, meaning the Available amounts in my Savings Budget are actually funded by money in my bank accounts. (At this point I don’t care where the money is located in my checking account or savings account. I just want to be sure the total Available amount (i.e. the amount I’m telling myself I have available) is equal to the total amount of funds I actually have in the bank.) I think this thread and the related thread Savings Budget - checking that it tracks real-world savings address my concern. Even though this thread has not been active in a while, I think this is the best place to ask my questions.
Is there a calculation in the Budget Health columns (referenced above), which indicates how much the total Available amount in my budget is different than the total amount of funds I have in the bank?
I created a sheet in my budget which
- A: Calculates the sum of all the accounts in my budget (i.e. adds all checking/savings accounts and subtracts all credit card accounts)
- B: Calculates the total of all the Available amounts in the current month
- C: Calculates the total of all uncategorized transactions
- D: Calculates A - B - C
If D is positive, then I have more money in the bank than I’m telling myself I have in the total of my Available columns. This is good.
If D is negative, then I have less money in the bank that I’m telling myself I have in the total of my Available columns. This is bad. I need to reduce the Available amount in one or more categories, until D is zero or positive.
My question is: Is this an accurate and reliable way to determine if my budget represents reality (i.e. if the Available amounts in my Savings Budget are actually funded by money in my bank accounts)?
Thanks for any feedback and guidance.