Tony,

I wouldn't recommend having unassigned transactions, though if you use  
it for income it won't create anything other than an accounting problem.

Imagine the following envelope scenario.  When you receive your  
paycheck, you divide all of your money between envelopes.  When you  
don't leave something unassigned in MoneyWell, it's like sticking  
money under the mattress and not making it available to your  
envelopes.  While this can create a buffer for you and help keep you  
out of trouble with cash flow, it also makes it difficult to know how  
much money you actually have to spend.  You could also forget about  
it, since it's not in your envelopes, and you may need it but not  
realize you have the money.

That's the basic effect of not assigning all your income to buckets.   
Your checking account will report that you have more money that you  
actually have divided between all your buckets.

The converse problem is even worse--spending money without assigning  
it to a bucket.  If you have all you money divided between envelopes,  
but then you spend money without assigning it to a bucket (or without  
removing it from an envelope), you have reduced the amount of money  
that you have, but not changed how much you say you have in  
envelopes.  The net effect of this is that if you were to spend all  
your money from the envelopes, you would overdraft your checking  
account.

For this reason, I assign all transactions to a bucket.  I have a  
bonus income bucket, and I have a bank fees bucket in which I put my  
interest.

There are some situations that you would not assign a transaction to a  
bucket (and it would also not mess up your cash flow as I described  
above), but I think that it's beyond the scope of your question...

Grace to you,
Blair Watkinson

On Mar 25, 2009, at 8:59 PM, Tony wrote:

>
> When depositing paychecks, bonuses, interest, etc, into a checking
> account, should a bucket be assigned to them?  I don't want to
> automatically send them to the salary bucket.  If I don't assign them
> a bucket, then they show up as Unassigned.  Is having unassigned items
> not good practice?  I found I can also right click and make the bucket
> optional for these kinds of transactions.  What are others doing and/
> or what is recommended?  Thanks
>
> >


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