Cash plan items - initializing allowance

Initializing your allowance

When getting started on your cash plan, deciding how much allowance to give yourself is probably going to be plain guesswork. Not to worry. You can change your allowance at any time. When you have finished creating your cash plan and can see your Net cashflow, you will be able to refine the amount of your allowance. For now:

Estimate how much you will need for your weekly allowance. Part of this estimate is deciding on which type of spending you will be using your allowance.
Choose the weekday on which you will give yourself your weekly allowance.
Decide whether setting aside your allowance money fits best in your Net cashflow on the 1st, 15th or half on the 1st and half of the 15th of each month.

For the below example we are assuming that you have decided to give yourself $250.00 each week on Thursday and that setting aside your allowance will probably fit best for your Net cashflow on the 1st and 15th of each month.

When a new cash plan is created, a default allowance is added. To set up your allowance, you edit the default in the Allowance dialog box which is opened by clicking on the Edit button in the Allowance slider.

In the Allowance window:

Change the day you will usually get your allowance to Thursday.
Leave the normally every weeks at 1.
Change when you want your allowance set aside to the 1st and 15th.

In the Edit Allowance Set Aside dialog box:

Change the New amount to 250.
Click on the OK button.

You can also change the Description and Start date, if needed.

Back in the Allowance window:

You can change the name of your Allowance. For example, if the cash plan is being used to manage the cash flow in a small business, Allowance could be changed to Petty cash.
If you choose to not use the Allowance feature, uncheck the Include in Cash Plan checkbox.
Click on the OK button.