Budgeting Your Savings
All the dollars in your budget need jobs – it doesn’t matter if that job is immediate, a few months from now, or years down the road. That's why savings accounts are Budget Accounts.
What are you saving for?
Imagine you've got a savings account with $4200 in it. Maybe you've never even thought about what that money is for. It's just savings, right? But you're a budgeter now, so this is the time!
After some reflection, you decide that money is really for your new bike, for vacation, and for some part-time classes you're taking. Perfect.
- Add your savings account (that's a gimme, right?)
- In your budget, make sure you have categories for the jobs those savings dollars are waiting to do. In this case, your bike, your vacation, and school.
- Budget all the money in your savings account to those categories you just set up.
That's it! Your money is protected and waiting for just the right moment. Because you have dedicated categories, you don't have to worry about those dollars going off and buying groceries. You'll be ready for that new bike when it's ready for you!
Transferring money to a savings account?
Great! You'll notice that transferring dollars from an on-budget checking account to an on-budget savings account doesn't change your category balances—that's because those dollars already have jobs.
It's time to move money so that your savings categories accurately reflect what you have in your savings account—give your dollars some new jobs!