I agree with this approach. My tax instalments and year end payments are included in the income section of my budget as an offset to the income that caused the tax. My pension is tax withheld at source so I simply record the net in income. Income taxes are not something you chose to spend on but the direct result of income generated. Therefore it seems to make more sense to treat income taxes as an offset to income. A bit like “Cost of Goods Sold” in a retail business.SmileyFace wrote: ↑Wed Dec 30, 2020 9:30 am
I also don't consider my taxes money I have "spent". It is money taken - not money spent.
Having said that there are lots of ways to do this stuff.
As far as actual spending went in 2020. Well under plan with travel virtually zero. Eating out, entertainment, way down. Charitable giving, groceries and liquor way up. Lake house renovation and unplanned new car soaked up most of the under spend. Sure glad 2020 is gone. Hopefully, 2021 will be more fun. Retired, 70 years old.