GnuCash and Budgeting

Hans Fugal hans at
Tue Sep 20 13:16:09 MDT 2005

See Ross's comments, with the additional reason that taking stuff "out"
of your bank account without really taking it out of your bank account
makes statement reconciliation a pain (extraneous information).

I think you also made a mistake:

> Balance:
>  Bank: $975 (equity $975)
>  Gas: $25 (gas bills $25)
> Net worth = Equity  (assets-liability)
>  $950 (Assuming no other bills :D )

That should be bank/equity: 950, gas/bills: 25, total 975

Which demonstrates the problem: your accounting for bank says only 950,
but your true balance (after waiting for things to clear even) is 975.

The real issue is that a budget is an estimate, or a plan, and so needs
to live in a different plane of reality than what really happens with
your money. It's like an overlay, it's purely an informative planning

 Hans Fugal                 | If more of us valued food and cheer and     | song above hoarded gold, it would be a   | merrier world.  
                            |         -- J.R.R. Tolkien
GnuPG Fingerprint: 6940 87C5 6610 567F 1E95  CB5E FC98 E8CD E0AA D460
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