Would it be possible to create a sheet that gives you details on what transfers to set up in your bank account to automate budgeting?
So I get paid twice a month, and my wife gets paid twice a month into our INCOME account. I then have automated transfers set up to transfer money to my BILLS, LONG TERM BILLS & a couple of other accounts.
Is it possible to make it so that the sheet analyses the incoming & outgoing from the accounts and create a list of transfers needed in order to have the right amount of money in each account?
Example: INCOME: Paid $3800 on the 1st BILLS: -$2000 of bills between 1st & 15th (second payday) Recommended Transfer: INCOME TO BILLS $2000 on the 2nd
I have multiple accounts set up for specific tasks: No account fees on each account INCOME: Any income received BILLS: All my monthly bills LT BILLS: Any bill that is paid quarterly or annually etc. Annual Amount / 26, and then I transfer this over every payday, so that there is money there for those bills SAVINGS: General Savings account.
So I am just after a way to in a sense automate a lot of the process.
@SpinFX007 the automation you are speaking of would be really nice.
Have you checked out the Add a Projected Balances sheet. While it isn’t automated, perhaps you can simulate your month and get an estimate of your projected balances based on fixed recurring monthly and yearly income and expenses. Just an idea.
While I use a virtual envelope system and a unified checking account, in your system I would be tempted to do like Warren suggests to get an overview and transfer above average for variable bills so there wouldn’t be the risk of a gotcha. I would rather be a little high and then transfer a little back to savings quarterly in this example. I can not recommend the following; but, if you bank offers overdraft protection based on your balance across accounts with no fees, you could cut things very close knowing that the bank will pay the bill and transfer the money from another account. Again, I couldn’t bring myself to rely on that system.
Interest income what it is today the ramifications on a personal level tend to be negligible versus 100s of thousands in payroll etcetera on a corporate level for moving money around to keep earning a little in an interest baring account.