For a long time I’ve moaned about how time consuming and depressing it is to budget each month. I’ve always used MS Money 2000, but I got so fed up with it I’d leave it for a few months and get into trouble financially.
What I used to do was, download all the transactions for the month from my bank and go through the process of saying yes, that the transaction I have listed in my bills and the amount has or hasn’t changed, used to take me an hour sometimes.
Heres how to get the process down to 10 minutes.
Initially you will have to setup all your bills in MS Money, I’ve even got birthday, Christmas, garage costs and anything I can think off. Now, set all of the bills to auto enter, so you don’t have to confirm each transaction. Don’t include stuff which is variable like shopping.
We’ve also got a shopping bank account.
Now at the start of the month when most of your bills come out of your bank account, get a mini statement or log onto to your bank account online and get a balance.
Look at the balance in MS Money and minus that from your actual balance and add a “Balancing” miscellaneous transaction to MS Money. You should now have a matching balance.
Got to the forecast and see how much money you’ll have till the start of next month (or when most of your bills come out) and minus this from your current balance or the balance you’d like to have next month.
Then transfer this amount to your shopping bank account.
Hey presto, you’ve done your budget without having to enter lots of transactions.
by JM