everydollar fundsIn my initial post about budgeting I strongly recommended trying out everydollar.com and I provided 10 tips for starting your budget with it.

As I was enjoying Easter dinner my sister, the one who loved it, dropped this bomb on me.

“Oh yeah, I don’t love it anymore and stopped using it.”

My jaw dropped. I was shocked. My immediate response was, “well then I’ve lied on my blog, because I said you love it.

What happened?”

I could not understand why she didn’t like it. After discussing I realized a huge point I did not make in my article about creating an everydollar budget.

 FUNDS

The one item I left out and forgot to explain was funds.

There are two types of budgeters

  1. Those that pay each expense in the month it is due (regardless if it only happens once a year)
  2. Those that plan ahead for annual or occasional expenses. They put money towards those upcoming expenses every month.

If you are the pay as they come person you have had no trouble, but if you plan ahead and didn’t know about the funds feature then you will be frustrated with everydollar, as my sister was.

Without setting up funds (which I forgot to mention) at the end of the month your budget gets wiped clean. All that money you pre-planned doesn’t transfer to next month’s budget without manual input. Who wants to do that every time?

I remember being frustrated at first too, but that was nearly a year ago. Over time I completely forgot that I was using another feature of the program that is not automatic.

First to see all of the features and to set them up you must be on a desktop computer or tablet.

The app is great, but limited to only adding expenses, income or moving money around in budget items.

To start click on the budget item: a small box will appear on the right hand side with the budget item name and information about that item. There is a favorite button and a button that says “make this a fund.”

If it is a budget item you use often, you can click on make it a favorite. This will move it towards the top of your budget for easier access without scrolling.

For a fund click the arrow to the right. If you want to make it a fund click the button until it is green. You will then choose your starting balance and your savings goal. If you have money from previous months (assuming you were budgeting another way before everydollar) already set aside for this line item then put that amount under “starting balance.”

If you have a goal, include that under “savings goal.” I would use the “savings goal” part if I am saving up to buy something or a bill that I know is standard every so often. For other areas that I don’t have a particular goal, but want the surplus money to carry over every month I just leave the savings goal as blank. You have now created a fund.

You can make as many of your line items funds as you want.

In our budget many of our line items are funds (in fact more are funds than not) because that is how I like to budget. For instance, we have a line item for “tuition, sports, etc.” that falls under our children category. We don’t pay for extra-curriculars every month, but I set aside money from our budget every month towards this. That way when we need to pay soccer registration, girl scouts fees, schools registration fees etc. all around the same time it doesn’t impact our budget any more than usual.

We also have a line item for Christmas so that we can pre-pay for our Christmas expenses.

If you have any questions about everydollar or funds please let me know. I’d love to help you fall in love with this easy to use budgeting program.

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