How setup Quicken for future expenses?

No. Open up a new interest bearing bank account and add it to your chart of accounts. Now start putting money in the account.

Instead of "liability" accounts, you'd need "accrued" accounts. Example: You want to buy a new PC, for $1,200, by putting away $200 a month. In months 1 - 6, you would put the $200 into a separate savings or checking account from your current account. The journal entries (and thus the accounts you need in QB), would be: Dr Cash #2 (deposit into new account) Dr PC Purchase "savings" (an asset account) Cr Accrued PC Purchase (a contra asset account that would look like a negative asset, but it is not a liability account) Cr Cash #1 (withdraw / transfer from old account)

When you buy the PC, the journal entries would be: Dr Fixed Assets (assuming you captialize the PC) Dr Accrued PC Purchase (to zero out this account) Cr Cash #2 (withdraw to pay for the PC) Cr PC Purchase "savings" (to zero out account)

Let me know if this helps.

Regards, Russell Tuncap, CMA, CPA

Russell I think that will help a lot. But I will have to print it out and read it a few times to wrap my head around it

By the way....I'm using Quicken and not Quickbooks. Does that make a diff on your methods?

I assume that this is for personal finances? You're really better off with Quickbooks if it is for a business.

Does your versi>>Let me know if this helps.

Hi Beverly

Yes this is for personal finances only

I'm using Quicken 99 Basic... and I'm pretty sure it doesn't have "savings goals"

I think I will have to upgrade to get savings goals. Is it worth the upgrade in your opinion? Is savings goals the feature I'm looking for to do what I want.... i.e. save for "expenses" in the future such as vacation, new furniture, etc?

Off topic question... but would Quickbooks make a good "tool" even if just used for personal finances?

Or best to stick with Quicken only?

I apologize... I interpreted your question to be business related, not personal finances. My original suggestion was strictly business minded; not really practical for personal financial planning.

I would agree with Beverly... you should stay with Quicken. QuickBooks is much better for business than personal finances. I'm not well versed in Quicken, so I can't give you any opinion or suggestions in that program.

Through all of this, I do commend you on saving cash for your purchases, not buying on credit and going into debt. For more on this philosophy, you should check out

Good luck, Russell Tuncap, CMA, CPA

"Savings goals" is just a fancy way Quicken has of transfering your money to another account within Quicken. The benefit of using savings goals versus just creating a "fake" savings account to "hide" your money in may not justify the investment if that is your only upgrade need.

To do the same thing (or quite similar, actually) in your version, just create "savings" accounts for all your savings needs... naming them after for whatever you are saving. Then, in Quicken, make a withdrawal using the new savings account as the category to transfer the money in. This will sufficiently separate the funds. When you have enough for your purchase, simply make a withdrawal from the new savings account and use checking as the category.

To be fair, I'll let you know what the difference is in using Quicken's bonafide savings goals feature is:

1. There is a nice graphical interface which allows you to set a due date for a savings goal and a bar chart shows you where you are in meeting that goal on that date. It also suggests the monthly contribution necessary given the current status.
2. It treats the savings goal account as an asset rather than a cash/savings account.
3. At any time, you can hide the savings goals in the checkbook register and see what is really in your account. This is NOT necessary for reconciliation.

Personally, I use savings goals for any expense that I have which does not occur monthly. That is how I always have enough to pay my car insurance in full every 6 months rather than use their payment plan which only increases the expense. I also use savings goals to maximize my benefit of interest free financing offers... keeping the money in an interest bearing account until just before the interest free period runs out. I did this with "fake accounts" in Quicken for years until the savings goal feature came out (I began using Quicken in DOS).

To answer your follow-up question, I would not recommend you use Quickbooks when Quicken suffices. There are just too many features that the average person would not use and could confuse the issue for you.

Save your money.

Is savings goals

OK Beverly... thanks so much for your help!!

I will stick with Quicken for now

But wont the above throw my actual balance off in my checking acct?

Cause after all all I want to do is "separate" funds in my checking acct that are "earmarked" for future expenses such as anticipating needing new furniture years from now ( due to wear).... that kind of thing.

Please bear with me Beverly and others! Thanks so much for the help!

Hi Russell... yes I should have been clearer on this being a personal finance question. Sorry!

But yes.... the above reference to dave ramsey is EXACTLY why I want to start "anticipating" expenses way in advance and saving up for them instead of borrowing

After all.....certain things in life just plain wear out and need replacing even if after many years use.... i.e. furniture, cars, etc

It would be an unreconciled transaction similar to a check which has not cleared the bank yet. You will still be able to reconcile to your bank statement.

To separate is to remove from the rest, is it not? If you keep the money in your running balance, you will be more likely to spend it than if it is removed from the running balance. Your physical checking account will still have the money... it will just be split between spending and separating accounts in Quicken. If it makes you feel any better, name the "saving" account "checking-future purchases" whereas the "spending" account name remains as is.

No problem. Glad to do it.