How do you account for gifts and one-time purchases?

Seeking Advice Forum
1

When it comes to budgeting, I’m curious about how to handle gifts and personal one-time purchases. I have a sinking fund for these items, so the money is available. Should I include these purchases in my normal budgeting software, or leave them out? Part of me thinks they should be included since these expenses come up regularly, but I also worry it might skew my month-to-month or year-to-year spending comparisons.

2

I have a sinking fund for gifts and recurring personal purchases. For truly one-time expenses, I just categorize them as ‘misc.’

3

Ruth said:
I have a sinking fund for gifts and recurring personal purchases. For truly one-time expenses, I just categorize them as ‘misc.’

That sounds like a good approach. I’m leaning that way too.

4

I treat sinking fund transfers as separate from my budget. I don’t include them in my monthly totals since I accounted for them ahead of time.

5

Tyson said:
I treat sinking fund transfers as separate from my budget. I don’t include them in my monthly totals since I accounted for them ahead of time.

Exactly! That’s my situation too.

6

We include all gifts in our budget, including one-off purchases. It keeps our month-to-month and year-to-year comparisons accurate.

7

Tyler said:
We include all gifts in our budget, including one-off purchases. It keeps our month-to-month and year-to-year comparisons accurate.

That makes sense! I guess consistency is key for tracking overall spending.

8

I have categories for gifts and special expenses. I track them separately to avoid messing with my regular budget totals.

9

Westley said:
I have categories for gifts and special expenses. I track them separately to avoid messing with my regular budget totals.

Sounds like a solid plan! I’ll consider that for my budgeting.

10

I use a sinking fund for gifts and log them under ‘gifts’ in my budget for that month. I reassess my spending goals regularly.

11

Flint said:
I use a sinking fund for gifts and log them under ‘gifts’ in my budget for that month. I reassess my spending goals regularly.

That’s a great way to stay organized! I might try that method.