> By nature, the bucket (envelope) system is designed to set aside money  
> so you don't spend what you don't have. This includes savings because  
> you should be allocating part of your paycheck to savings each time  
> and then transferring (spending) that money to your Savings account.  
> If you see this as a way to take part of your income and make sure it  
> gets to savings then this is very straightforward.

> I'm not sure why it gets confusing but it does. If you think of your  
> transfer to savings in the same way as your spending at a store then  
> there is really no difference between assigning the withdrawal from  
> your checking account to your savings any different than a withdrawal  
> to buy groceries at your supermarket.

Hi Kevin,

I totally get this philosophy, and it made sense to me from the start.
There is a real benefit to looking at transferring money into savings
as "spending" it, and I've tried to figure out a way to make this
work. I think I just have a habit that gets in the way of using
transfers this way. Please bear with an explanation:

As I can earn more money from my higher-interest savings account, and
dividends are based on the daily balance in the account over the
month, I try to keep any money I'm not using in the near future in
this account, rather than in checking. The day after payday I transfer
a big chunk to savings, and as I need money for expenses, I transfer
chunks back to checking. So, in a given month there's typically one
transfer from checking to savings, then several from savings to
checking. This is perhaps the reverse of the technique you describe –
rather than transferring only remainders to savings, I put everything
in savings, then pull out some as I need it. For me, this also makes
it very real how spending money is stealing from my savings.

Therefore, if I wanted to have an actual transaction to document the
savings "spending," I'd have to transfer some money to checking, then
transfer it right back to savings – much to the consternation of my
bank – and only attach a bucket to one of those transfers. Also, I'm
paid towards the end of the month, so the single lump transfer to
savings happens the month before my salary is actually allocated,
which complicates a split-transfer solution. This got me to thinking
how much I'd appreciate a way to "spend on savings" without creating
an actual transaction.


> The ability to take leftover cash in a bucket and flow it to a  
> different selected bucket is coming. This will let you assign pipes to  
> your buckets so you can tell MoneyWell where to send money remaining  
> at the end of a month. Some buckets may send cash to savings, others  
> to debt reduction, and others may just keep their money. Pipes have  
> been on the future feature list since 1.0 and I'm really excited to  
> see how people use them.

Sounds very cool!

//Drew
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