On Feb 2, 2009, at 12:16 PM, witsix wrote:

> I think I understand that I can start tracking transactions without
> starting to track cash flows yet.  I've created a spending plan
> already, so am reading to go with that.  However, I won't receive my
> first paycheck for the month of February until Feb. 13.  I've created
> my checking accounts and entered starting balances as of Feb. 01.  I'm
> also entering transactions, but am wondering if I can do that without
> assigning buckets, since I haven't flowed any income into those
> buckets yet.  I notice the transactions show up as unassigned, but
> don't know the ramifications of that.
>
Go ahead and start tracking your cash flow. All you need to do is  
click the green triangle below the x-axis on the chart and put in how  
much money you have available to spend as of Feb. 1, 2009. MoneyWell  
will put that in the income bucket you select and you can start  
allocating that money to your expense buckets today! Watch our  
Starting Cash Flow Tracking video for more help:

http://nothirst.com/tutorials/MoneyWellStartingCashFlowTracking/

> I'm thinking that on Feb. 13, I will enter my paycheck income, and
> flow income into my spending buckets accordingly.  Then, any
> transactions that occur after that will be assigned to a bucket.  Does
> this make sense?
>
Yes. And once you get your next paycheck, you'll just click Allocate  
Income and have it fill your buckets as well.

> Also, what if I have a bill that comes up that doesn't yet have enough
> money in the bucket? For example, I just got a huge car repair bill.
> Although I'm setting up a bucket for car repairs, there won't be
> enough in that bucket for awhile.


How are you paying for it? You must have pulled the money from  
somewhere. If that's the case, then you would drag that bucket to your  
Automobile bucket and put in the amount so you can create a money flow  
to it.

If it's being paid for on a credit card, then you enter it in that  
account and assign it to your Automobile bucket. You might have to  
take money from another bucket to pay for it. In this case, it might  
be a Debt Repayment bucket.

The bottom line is, if you have paid for something you still need to  
track it even if it sends a bucket into a negative state. You'll just  
need to work out how to get it back to zero and how to avoid this in  
the future by building up an emergency fund.

Peace,

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


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