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2

One way to implement this is to use accruals accounting (which is typically built on double-entry accounting). That is, enter the expenses when they are incurred rather than when they are spent. You’d also enter the income when earned rather than when received. Then the balance of the account would be your ‘safe to spend’ amount.


8

I actually work for a company that provides one of these apps, and I can say that our app does both! There's an area where you can see your outgoings broken down into categories exactly as you're describing, but there's also a part where you can look at your assets, including investments, properties, pension plans etc. The difference, I think, is that the ...


0

It gives you some perspective on expenses. The point isn't really to budget, or to plan your savings. It gives you some vague idea of what "expensive" means. For example, if I'm thinking about going to a cinema, a $20 ticket might sound like a lot of money. If I think about it as "the cost of two lunches", I have a much more visceral idea of what the cost ...


0

My budget spreadsheet is my check register spreadsheet, with one tab per month, and has a separate tab for my single CC. Importantly, the check register tab "looks forward" to the end of the month, with line entries for pay days and known dates when expenses are due. I put the "multiple times per month" expense categories "Groceries", "Restaurant" and "...


47

This phenomenon is something I have discussed in previous answers. Essentially, I see budgeting software lumped into two categories: the proactive approach and the reactive approach. With the proactive approach, you tell the software how much money you have, and you assign this money to your budget categories. Then as you spend money and assign it to ...


3

For almost everybody, financial problems stem from spending. At any income threshold a person is capable of overspending. People turning to budgeting are typically getting there in an effort to track and control spending. I have never found any of these software solutions to be useful in any way because the categories are not helpful to me. "Clothing" I ...


20

For people on a fixed salary, the volatility primarily comes from spending. There would not be much value in seeing the same number on the screen each time the user logs in. It may even create unnecessary noise and confusion because the software would show no month to date income before the first paycheck is deposited. For everyone people with variable ...


0

The envelope method is a way of saving money while balancing your spendings. Basically it works based on personal budgeting technique. It is used widely by people to have a financial discipline with themselves. According to this simple article, it breaks down to following steps, Identify your income First, identify how much money you can make for a month. ...


8

"Outgoings" are necessarily exactly equal to income. It's January 2000 and you have an income of $5000. Good work if you can get it. Some of that money goes into food you eat. Some goes to rent or mortgage or whatever. If you're prudent, some of it goes into savings. On January 31st, all those outgoings necessarily add up to $5000. There's no other ...


4

Why do personal finance apps focus on outgoings rather than income Because what's relevant is how much -- and when -- money is deposited into your checking account, not where it comes from. The way I've always thought about my money is "outgoings as a percentage of earnings each month (with a target of max x%); and save the rest". If you lose your job, ...


26

You call these things 'personal finance apps', but really most people would call them 'budgeting apps'. How frequently is your income going to change that you need to update it on an app? You say that your expenses should be x% of your income, but that's a rule of thumb anyway, and is a starting place to creating your own budget. If you get a 20% raise, you ...


0

Some of those expenses are not random but very predictable, and they are certainly different categories and need to be handled differently. car tabs/registration, identity protection service, precious metals account fee The fees for these can be predicted, and you know the date. Adding to these types of expense are annual fees of any sort Amazon Prime, ...


9

Is there a better way to budget for this other than just having a monthly "random" line item for non-monthly expenses? I think so. car tabs/registration, You know this is going to happen, so increase your Car Maintenance/Repair budget line item by the relevant amount divided by the average number of months between these "random" expenses. identity ...


4

Expenses crop up at different frequencies, but in my experience, the lowest frequency for most recurring expenses is annual. (Some subscriptions can go multi-year, but there’s often an annual option as well.) Some annual payments can be split up into monthly payments, but for others like car servicing, it’s not practical. One way around it is to create a ...


0

Even with as many answers as already exist here, there's one option that hasn't been explained. Don't change anything Since your husband is getting paid more than before (as explained in the comments), you really should be getting more in your bank over time. Since you state that you can already easily pay your bills, you just have to let his paychecks ...


0

If you exactly earn as much as you spend, your bank account will vary around a fixed point. The variations around this point are caused by the timing of income and expenditures, but the average does not. Now your problem seems to be that you worry about a timing variation, presumably because that would cause you to bounce checks or have other credit ...


-1

First off, you need to have enough cash cushion that you reason not in "daily pay" but in yearly pay. This is to be fixed asap, many good resources on how to attain this can be found in this SE. Then you set up a joint account for common expenses where you contribute proportionally to your incomes. Monthly, daily weekly etch pay MUST not matter because this ...


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