Frequently Asked Questions

Here are some of the most commonly asked support questions we have received and the answers we would typically use as a reply. If you have a question that is not dealt with here please e-mail it to support@simplybudgets.com.

Question 1:- I entered my regular pay amount, but a different amount appears as the deposit in the budget worksheet. Why?

Answer:- The budget has been calculated by looking at the expenses youhave to pay. It calculates how much you need to earn and bases your budget on that amount. You can increase or decrease the deposit amount by entering a different number in the 'Actual Amount' box(es).

Answer:- You print the various reports that you require, (e.g. Budget Report, Budget Calendar, Credit Card Report) and use the spaces provided. (See the Budget Reports in Section 3 of this manual). It is not intended that you enter the amounts into the software as this is not necessary. Rather than creating an account of what you have spent over time, Simply Budgets focuses on planning forward. The various reports mentioned above allow you to keep sufficient records to be able to see if you have allowed correct amounts in your budget.

Answer:- You don't actually enter the amount you spent. Instead, you Roll your Budget Dates forward, and then just enter the amount you have in savings after the expense was paid.

Answer:- Yes you can. If you switch to the Sample Budget and then look in the Utilities Menu, you will find "Remove Sample Budget for an Additional Budget" This clears out the sample Data ready for a second budget. With the use of the Backup facility you can actually create more still.

Question 5:- I have more than one Credit Card. How can I use Simply Budgets when it only allows one?

Answer:- The Credit Card facility in Simply Budgets is designed to allow for chosen transactions to be placed on a Credit Card that is paid in full each month. If you have more than one card it is very likely that you do not pay the balance of each one in full each month. Any Credit Card that is not paid in full each month should be treated as a personal loan. As such, it's repayment amount should be entered as a Regular Expense. If you do not pay any Credit Card off in full each month, do not activate the Credit Card function.

Question 6:- Some expenses (such as Electricity and Gas usage) vary greatly during the course of a year. How can I allow for this?

Answer:- There is an easy solution to this problem. Using Electricity as an example, rather than having one 'Regular Transaction' scheduled perhaps three monthly, set up four 'Annual' Regular Expenses and call them Electricity - Summer, Electricity Autumn, and so on. You can then have a differing amount for each one which will allow for the variation.

Question 7:- When I go into 'View Current Budget' a message box pops up asking me to make a choice. Which option should I select?

Answer:- This only occurs if you have made changes to your budget. There is really no right or wrong selection but you can save time by making the most suitable selection. The computer is simply wanting to know if the numbers you previously had entered below your budget graph still apply. There are two variables:-

1. The 'Actual Amount' you deposit each pay.

2. The 'Opening Balances' used as a start point for your budget.

After considering why you made the changes to your budget, select from the three choices.:-

1. Do you want to keep the two variables exactly as they were before?

2. Do you only want to keep the Opening Balances you previously had?
   (In which case the budget will be calculated on the lowest possible deposit amount).

3. Do you just want to start again? (Same as (2) above but enters zero opening balances instead).
   If you don't know which one to choose, just go with the default (2) and then personalise to suit your requirements.

Question 8:- What should I do if I find I don't earn enough to cover my expenses?

Answer:- You will need to look at the section in your manual titled 'Money Problems and Solutions'. There are only two ways to solve a Cashflow problem. Earn more, or Spend less!
Obviously, you cannot continually spend more than you earn.

Most people who have a budget problem have it for this very reason. Winning Lotto might allow you to 'overspend' for a few years, but the problem will return (usually worse than before) unless you actually know how to balance 'ins' and 'outs' (live within your means). Once you have 'pruned' your budget as far as you possibly can, if the numbers still do not work and you can't see your way through the next year, you will need to look for extra income opportunities.
Be aware though that in many countries, the law protects people from 'unreasonable' debt. You will find there are organisations who specialise in assisting people to legally reduce unbearable repayments and debts to a manageable level. You see, lenders also have an obligation under the law to be sure the money they lend will not cause undue hardship to the borrower.

Since the introduction of Credit Cards the problem of knowing your financial limits has become harder to identify. Before Credit Cards were introduced, if a problem, like a car breaking down (for example) occurred, it had to be solved at that point in time, and a sacrifice of some sort just had to be made.
Since Credit Cards have become widely accepted, the problem is not solved when it happens. Instead it is made worse! The repair, when placed on a Credit Card, is not solved. Not only is the money still owing to the bank, but now there is interest to pay as well.

The problem just got worse, even though it seemed to go away! Many years ago, if the family car broke down and there was no money to fix it, it would sit in the garage until the money was saved to pay for the repair. In the meantime, solutions like, getting a lift to work, riding a push bike, walking, using public transport etc. were all solutions that would have been used. None of these seem to be either personally or socially acceptable anymore.

The answer to this question may be a tough one to accept, but it's better to face up to it now than when it is worse.

Question 9:- How should I include an expense in my budget when it has not started to occur, but it will do so before the next year is through? (My child will be going to a private school next year and that is not for another six months!)

Answer:- This is a good question. The best way to deal with this is to include the expense in your budget now, but put an 'end date' on the transaction one year from the budget start date. This will ensure you only budget one year into the future.

When school begins next year, roll your budget dates forward and then remove the 'end date'. At that time you will find the amount you need to deposit each pay will increase. This is because the budget you started out with only has two terms with school fees included (the two next year), but once the new year commences you will be planning for a year ahead that includes four terms with fees. There will be a slight correction in the required budget balance at the time you roll it forward, but this may actually be in your favour.

Question 10:- The interest shown for the first month of my Line of Credit Mortgage seems to be incorrect!

Answer:- This is because your budget starts part-way through the monthly cycle the bank is using to calculate the interest. The interest calculated is based only on the part of the month the software can see. You could estimate a correction amount and enter it as a 'This time only' Regular Expense to 'Top-Up' the interest shown.

Question 11:- When I activate the 'Line of Credit' calculator in Simply Budgets it suddenly tells me I need to earn a lot more than I actually do! What am I doing wrong?

Answer:- This is probably because you have a 'home-loan payment' listed as one of your Regular Expenses. Once you switch the Line of Credit Calculator on, it automatically calculates each months interest the bank will charge you for the next year. If you already have a loan repayment included in your budget your budget will be paying the interest twice.

You should remove the loan repayment from your list of expenses and then re-calculate your budget.

Question 12:- What Opening Balance should I enter if I have more money than Simply Budgets suggests is needed?

Answer:- This is a problem we would all love to have! Because Simply Budgets is focusing on helping you identify your 'bottom line', it would make sense to take any larger surplus amounts and place them in some kind of higher interest-bearing location than a day to day budget account has to offer. If you keep your budget account working with a small surplus and separate any major surplus funds you will be less likely to accidentally eat into the surplus. I would only enter the opening balance that was suggested as required. Then the budget will always show what needs to be in the bills account.

Question 13:- I am self employed. Can Simply Budgets work for me considering my income is not regular?

Answer:- You will have noticed by now that Simply Budgets focuses on the expenses you have to pay rather than the income you earn. It then lets you know two things.

1. How much you need to earn to meet those expenses

2. How much needs to be in the bank at any given point in time.

You would have noticed by now that your bills don't wait a bit longer to be delivered because you have had a bad few weeks. Knowing where your account needs to be up to will be very useful information when the money comes flowing in again. You will find your account balances vary a lot from your budget's targets, but you will always know what the bottom line is. 

One suggestion I often make to people in business is to have separate accounts for their personal and business affairs. Organise to transfer from your business account on a regular basis the amount Simply Budgets calculates is required for the personal budget to function and then follow your budget to make sure you stick to that budget. You then need to work hard enough in your business to make sure you can always allocate the budgeted amount.

Simply Budgets will also be very useful in helping you plan your business budget. If you enter your known fixed costs and estimated variable costs you will find out how much you need to earn to break even as well as having cash-flow projections to follow.