Best Budget Approach

agridley

I have Quicken Classic Business & Personal Mac. It has a budget tool. If I am budgeting for an annual income, but the frequency and amount are fluid - due to say a commission based job - how is the best way to set that up? Similarly, if I know a total expense annually but the frequency of when it hits is fluid - say I have a vendor who bills irregularly - what is the best way to set that up? My sense is that I should put the total amount I have budgeted for annually, either in the FIRST month of Jan or the LAST month of December. But I don't know which one is better as I track my budget (actual vs budget) each month using the Quicken Budget tool?? I understand I could "smooth" the expected amount evenly across all months but then when a BIG month expense hits it'll look like I over-spent against my budget. What's the most common and recommended practice? THANKS!!!

jacobs

You don't want to put those budgeted income or expense amounts in January, because if they don't occur in real life in January, your budget will show you are way off your budget.

You could put those budget amounts in December, and then in the month they occur in real life, edit your budget you move the budgeted amount to, say, May.

agridley

Thanks! I'll give it a go.