envelope budgetting experiments

README.md

Experiments in envelope budgetting.

See also:

• http://article.gmane.org/gmane.comp.finance.ledger.general/2162 (Roel V)
• https://groups.google.com/forum/#!topic/ledger-cli/vcD8sErX-eY (Martin B)
• http://orgmode.org/worg/org-tutorials/weaving-a-budget.html (somebody)
• http://sachachua.com/blog/2009/04/my-financial-network-map-and-virtual-envelope-system (Sacha Chua)
• http://paste2.org/s2E1bm8v , https://gist.github.com/sploot/9b5bd8443bea8b15ee81 (Kyle)

envelope-sm.journal

; Journal syntax compatible with: hledger, ledger
; Examples tested with: hledger 0.23.98 (should be easily adaptable)

; "Asset subaccounts, balanced virtual transactions"

; "Envelopes" (funds allocated for a certain purpose) are represented
; by virtual subaccounts under an asset account, eg checking:

2014/10/01 * opening balances
    equity:opening balances
    assets:bank:checking                     $1000
    assets:cash:wallet                        $100

2014/10/01 * save for food this month
    [assets:bank:checking]                   $-100
    [assets:bank:checking:reserve:food]

; The total balance of checking is still correct, but we can see some of it
; has been allocated:
; $ hledger bal assets
;                $1000  assets:bank:checking
;                 $100    reserve:food
; --------------------
;                $1000
; $ hledger bal assets --flat
;                 $900  assets:bank:checking
;                 $100  assets:bank:checking:reserve:food
; --------------------
;                $1000
; To hide the envelopes and see only real-world accounts, add -R (or real:1).
; (we could use depth:3, but -R will be more thorough eg in register reports):
; $ hledger bal assets --flat -R
;                $1000  assets:bank:checking
; --------------------
;                $1000

; Withdrawing from the reserve is done as a distinct step, keeping
; virtual and real transfers separate and balanced so that reports
; remain correct with or without -R.

2014/10/04 * buy food, using food reserve
    ; virtual transaction, withdrawing from reserve
    [assets:bank:checking:reserve:food]       $-50
    [assets:bank:checking]                     $50
    ; real transaction, paying for food
    assets:bank:checking                      $-50
    expenses:food:groceries                    $50

; Envelopes live in a specific asset account, but what if you spend
; from a different asset account ? We make a corresponding withdrawal
; from the envelope to its parent account, just as above. The result
; is some additional unallocated funds in checking. (So, the non-reserve
; checking balance is no longer exactly the total unallocated balance - 
; to get that we'd have to consider the cash balance as well).

2014/10/09 * buy food with cash, and update reserve
    expenses:food:groceries                    $20
    assets:cash:wallet                        $-20
    ; reduce food reserve accordingly
    [assets:bank:checking:reserve:food]       $-20
    [assets:bank:checking]                     $20

; The status now:
; $ hledger bal assets --flat
;                 $920  assets:bank:checking
;                  $30  assets:bank:checking:reserve:food
;                  $80  assets:cash:wallet
; --------------------
;                $1030
; Real-world transactions:
; $ hledger reg assets real:1
; 2014/10/01 opening balances     assets:bank:checking         $1000         $1000
;                                 assets:cash:wallet            $100         $1100
; 2014/10/04 buy food, using f..  assets:bank:checking          $-50         $1050
; 2014/10/09 buy food with cas..  assets:cash:wallet            $-20         $1030
; Virtual transactions for budgetting:
; $ hledger reg assets real:0
; 2014/10/01 save for food thi..  [as:bank:checking]           $-100         $-100
;                                 [as:ba:ch:re:food]            $100             0
; 2014/10/04 buy food, using f..  [as:ba:ch:re:food]            $-50          $-50
;                                 [as:bank:checking]             $50             0
; 2014/10/09 buy food with cas..  [as:ba:ch:re:food]            $-20          $-20
;                                 [as:bank:checking]             $20             0

This ultisnips snippet reduces the burden of multiple entries for the envelope system

snippet c "Credit Transaction" b
${1:!v strftime("%Y")}-${2:!v strftime("%m")}-${3:!v strftime("%d")} ${4:*} ${5:Payee}
${6:Expenses} $${7:0.00}
[${8:Budget Account}] $-$7
${9:Liabilities:Visa} $-$7
[${10:Budget:Monthly:Visa}] $$7
$0
endsnippet