On Apr 3, 2009, at 1:42 PM, Terry Norton wrote:

> Now, as bill come due, take the money from that envelope and pay the  
> bill.  This system is supposed to stop you from over spending for  
> each expense you have.  Once the money is gone from the Dining  
> envelope, you can't spend anymore on dining, for the simple reason  
> there's no money in the envelope to spend.
>
> You also happen to have an Entertainment envelope.  What you are  
> doing is making a decision that you would rather eat out more than  
> entertain yourself.  So you take money from the Entertainment  
> envelope and put it in the Dining envelope.  Obviously, you are now  
> going to spend less on entertainment for the month.
>
> If you do this every month, then you might as well allocate more to  
> dining than entertainment each month instead of having to steal from  
> the Entertainment envelope.  Now if you truly don't want to  
> overspend on dining, then when the envelope is empty, don't go  
> dining until it gets filled again.

I think we're looking at this scenario from opposite directions.  Say  
it's March 31st.  I have $50 left in my Entertainment bucket and $0  
left in my dining bucket.  I decide "hey, let's go out to dinner  
tonight!" and we do.  So when I sit down and do the receipts on April  
2nd, I assign the credit charge to the Dining bucket, because it's a  
dining expense.  I pay for it by transferring the $50 I didn't spend  
in March on entertainment into the dining bucket instead.

That transfer shouldn't affect my allocations for the month of April.   
The fact that I decided to spend leftover entertainment money on  
dining shouldn't mean that now I don't need to allocate the full  
amount for dining for April, nor that I "screwed up" by overspending  
in the dining area.  If anything, it means that I actually looked at  
my money *before* I spent it, which admittedly is new to me.

Kevin said that Moneywell simply can't tell the difference between a  
money flow generated by Allocate Income and a manual one, so I'm  
assuming that's why I get all screwed up at the end of every month  
when I look at my leftovers and decide to spend them in different  
areas then originally budgeted.  It's not a crisis or anything I can't  
live with, but I'm looking forward to having Moneywell not mess up my  
planned allocation just because I did a little rearranging at the end  
of the month.

-Trish


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