If you have a particular savings goal, turning a Budget Item into a Fund can be useful. Let's say you want to start saving for Christmas. If you start saving early, you might actually have enough money to buy presents for the 67 people on your shopping list without going into debt. Here's how to set up a Fund:
1. Add a new Budget Item, or click on the existing Budget Item you wish to turn into a Fund.
2. Click "Fund" on the detail card to the right.
3. Click "Make this a Fund".
4. Once you do that, you will have the ability to enter how much you have saved so far (Starting Balance) and the total amount you want to save (Savings Goal).
5. Once you input your Starting Balance and Savings Goal Click "Save".
6. Notice the Fund Balance is now updated to $200. It will also reflect this amount under "Remaining" in your budget list.
7. Once you have the Fund set up with a starting balance, simply enter the amount of this month's income you want to put into the Fund under the "Planned" column. EveryDollar does the rest! The amount you plan to put into your Fund this month will be added to your balance and carried forward month-to-month until you need it. Notice as soon as the Planned amount was changed to $500, the Remaining amount immediately went from $200 to $700.
* Note on how to use funds:
You never want to add income transactions to your Fund items. That will make the “Remaining” column (Fund Balance) incorrect. The “Planned” column acts as the deposit amount for Funds. So basically, if you are adding $100 to your Christmas Fund, you will simply add $100 to the “Planned” column for the Fund and that’s it. You will not add a transaction at all. As long as your Current Balance and “Planned” amounts are correct, your numbers should all line up.
You can also delete any transfer transactions that may come through from your bank account if you add money to your funds as you will not need those.
The only time you will add a transaction to a Fund is if you are spending money from your Fund item. Then, you will add an expense transaction to the Fund and the “Remaining” column will decrease and the “Spent” column will increase for the Fund.