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 "Make this a 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:
- How do I make the Fund grow?
Enter the amount you want to put into the Fund for this month into the Planned column of the Fund line. That's all there is to it. No transaction needed. EveryDollar counts that amount as the monthly "deposit" you're making.
- What do I do with transactions from my bank?
If you make an actual deposit into the Fund, or a transfer into/out of it, just delete that transaction. If you spend money against the Fund (maybe you bought plane tickets for that beach getaway in the summer), then drag that expense transaction into the Fund line. EveryDollar will deduct that expense from your overall Fund balance.
- How do I make sure the money is actually in my account?
Some people like to have a separate savings account for their Fund. Others keep the money in their main checking account. Some even put theirs in a cookie jar in the closet!
- What if I had already set some money aside?
Click on the Fund Line, then click Fund Details on the right side of the screen (in the little white box), and you'll see the Starting Balance field. Change the number in that field to whatever amount you already have, then click Save.