Savings and Spending Budget

This is a savings orientated strategy for budgeting, based on having committed spending of 60% of your gross income. You can find out more in the article written by David Jenkins at A Better Way to Save.

In Microsoft Money 2007, you have the option to choose the budget that is suitable for you. There are three options, the essential budget, the advanced budget (as per previous versions of Money), and the Savings and Spending Budget. If you select the Savings and Spending Budget, then you will be presented first with a summary of the concept which has 6 tabs (The origin, The Idea, Committed Expenses, Savings, Irregular Expenses and Fun Money), explaining it in more detail.

A quick view of the various parts can be seen below (click on the images for larger versions).

What can the Savings and Spending Budget do for you?

This budget helps you allocate your monthly income so you can create a savings plan and gain better control of your day-to-day spending

Estimate your gross income

The income amount you enter should be your estimated gross (pre-tax) income, including any income you use for saving or spending from self-employment, interest or dividends

Set goals for saving and spending

To help you set realistic goals, Money has estimated you current saving and spending in each budget group, using the transactions, categories and accounts in your Money file

Complete

You've just taken an important step toward allocating more money for savings and controlling your spending. Click Done to view your working budget where you can see the big picture and adjust amounts as necessary

Working budget: Current month

On this page, your can compare your planned amounts to your actual spending, optionally plan amounts for individual accounts or categories, and adjust your plan as your life changes or you achieve your goals

Comment: I like this concept personally , as it is something I try to do anyway, although I am trying to aim for a certain amount (less than 60% though) of my Money being allocated against those expenses I have less control over. I wrote some words about this topic in February - see Microsoft (MS) Money FAQ Blogsite: The 60% Solution.

It's nice to see it in Microsoft Money - although this is version 1, so it definitely requires some further work in terms of integration with the rest of the product.

Category: Budget

Rank # 323 / 553

Keywords: S&S, spending, saving, budget