A Better Way to Manage Your Everyday Money - Book - Page 35
Ledgers
A ledger is anything used to keep track of additions, withdrawals, and the current balance. If you
use one, your check register is a ledger. If you keep track of checking account activity with a
spreadsheet, that spreadsheet is a ledger. At your bank or credit union, your checking account is
presented as a ledger showing debits (withdrawals), credits (additions), and the total amount of
available money in your account. (Checking accounts and check registers are discussed in
Chapter 6.)
While your account at the bank or credit union only shows activity and the current balance,
PerNetFlow keeps track of the money in your checking account using program-maintained
ledgers. The total available money in your checking account is the total of the balances in all of
your program-maintained ledgers.
There are two built-in ledgers in PerNetFlow.
● Unallocated ledger - The money in your
checking account that you have not
allocated to any specific purpose. When
you enter a deposit, the money is added to
this ledger.
● Allowance ledger - The money that is
automatically set aside, when you pay
bills, for your future weekly allowance.
The balance is reduced each time you get
(withdraw) your weekly allowance.
Additional ledgers are automatically created for each bill, credit card, sinking fund and savings
that you add.
● Bill and credit card ledgers - You move money to these ledgers that you want to be used
for future payments. When payments are made, the balance in these ledgers is reduced.
● Sinking fund and savings ledgers - Keeps track of money that is automatically set aside
to sinking funds and savings as part of paying bills. You can also move money to these
ledgers separately. Money remains in a sinking fund or savings ledger until either you use
it, or until the money is automatically deducted for payments to a linked bill or credit
card.
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