On Feb 25, 2009, at 10:00 AM, Mikey wrote:

> But payments for this month might be dated for next month.  Are you
> suggesting that I set the date for such future payments to be this
> month anyway, despite the fact that the bank lists them in the future?


No, I'm suggesting that you keep all payments dated for the dates you  
expect them to happen. Why do you want to have future payments taken  
out of your bucket this month?

Maybe the confusion is that you are looking at the bucket totals as a  
total known expenses but they are not. The buckets are the equivalent  
of a physical envelope in the envelope budgeting method. In that  
scenario, when you get paid, you divide up your money into all your  
envelopes and then pay your bills and expenses from each envelope.  
Once an envelope is empty, you stop spending for that category.

So let's equate this to car payments. For this month you may have to  
pay $500 for your car payment. You would then take $500 from your  
cashed paycheck and put it in the Auto Loan envelope. When the loan  
bill comes, you take that $500 out of the envelope and pay it. You  
don't take 10 months of payments out of your paycheck today and put it  
in the envelope because that would probably cause you to have no money  
left for your other bills.

Does this help?

Peace,

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

Check out our MoneyWell video tutorials:
http://nothirst.com/moneywell/tutorials/

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