On Jan 1, 2009, at 12:26 PM, SpiralOcean wrote:

> Just set up new accounts today.  A checking and a credit card.
>
> I put in an initial balance in the checking and credit card.  For
> example purpose:
> Checking $400
> Credit Card $100
>
> I took my initial starting balance in my checking account and placed
> it into the income bucket of salary.
> Salary $400
>
> I created buckets, assigned monthly allocations, and flowed the cash.
> The amount of money in the Salary bucket went down as expected:
> Salary $200.
>
> Checking $400
> Credit Card $100
> Salary $200
>
> I paid off my credit card by dragging from my checking into the credit
> card:
>
> Checking $300
> Credit Card $100
> Salary $200
>
> This is a bit scary to me because my Salary staid the same.  But I
> should have $100 left to allocate in the Salary?
>
> I went to the transfer smart bucket, and dragged that transfer to my
> salary bucket and the salary bucket went down by $100.  But only if I
> dragged the transfer from my checking account.  If I dragged the
> transfer from my credit card account then my salary went up $100.
>
> This is scary to me because I don't feel I can trust how much money is
> in the salary bucket to allocate?
>
> Is there something I did wrong here?


If you have a balance on your credit card that you are paying off, you  
should use a bucket like "Debt Repayment" and flow your outgoing  
payment (transfer) through that. This way you'll have to flow money  
from your Salary bucket to that expense bucket.

If you purchase something on the credit card and that purchase gets  
assigned to a bucket and you have filled that bucket with money from  
the Salary bucket, then your payment (transfer) doesn't need to be  
assigned to any outgoing bucket because you are just moving money from  
one account to another and the categorizing of that payment was done  
with the purchase.

So in summary:
  1. Payments on credit cards for existing balances need to be  
assigned to an expense bucket because they are not for a current  
purchase, whereas…

  2. Payments on credit cards for current purchases do not need a  
bucket assignment because the purchase is tracking the cash flow.

Peace,

Kevin Hoctor
[email protected]
No Thirst Software LLC
http://nothirst.com
http://kevinhoctor.blogspot.com






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