I can’t find a thread on this: I have my monthly budget set up as well as savings goals for future expenses, which include expenses that occur every other month, quarterly or annually.
What I’m trying to solve for: I just need a clean way to look at what I’ve spent this month against this month’s budget. I don’t care if I’ve under or over spent in a savings goal category because there’s a slush fund to cover those (the reason for savings goals). But currently, categories that appear within those savings funds appear in my monthly budget. So it’s a game of subtracting out Savings Goal expenditures from the rest of the monthly budget so I can see how I’m really pacing against categories that month. I do realize that while I don’t want to see Savings Goal expenditures against that monthly goal, Savings Goals transfers to actually fund these savings is directly related to my monthly budget–I have to subtract (transfer) monthly to fund these goals like a debit.
Here’s an example of the problem. I have a home in a very hot area of the country so summertime electric bills can be $600, while winter bills around $100. So let’s say to offset the hot summer months, I transfer $200 each month to my electric fund…I’m replenishing this fund during the winter months when I don’t really tap into it, but build a nest egg for the summer months when I do need it.
If in August I pay a $600 electric bill, it will look like I’ve spent more than my budget can handle because of this huge bill. But I’m going to be using the Savings to pay for it. I don’t need to mess up my monthly snapshot of how I’m performing against my overall August expenses due to an anticipated bill that’s already covered.
Apologies if this is a topic already listed, but I searched and can’t find it. And perhaps I just need a different way to read/think about my monthly budget with Savings Goals as I’m not an accountant.