Underfunded category is off

This month I had to move a few thousand dollars from my emergency fund category to my yearly taxes category (ouch). I used the "move money" feature. All is well, except now my "Underfunded" amount under "Quick Budget" is a few thousand dollars high. I'm guessing this has something to do with the fact that I have a Monthly Funding Goal of $100 for my emergency fund. Since I moved money out of this budget rather than fund it, is that why it messes up my Underfunded amount? 

 

I thought by using the "moving money" feature, it wouldn't affect my monthly funding goals. It's not a big deal, but since I'm new to YNAB and still getting the hang of this "only budget money you have" concept, I like to reference the Underfunded amount to estimate how much income I still need to bring in this month in order to fully fund all my categories (I'm on a variable income). 

Any tips of how to allocate that money to my taxes without messing up these numbers?

Thanks!

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  • You could try moving the money between categories in last month's budget instead of this month's. You're right, though. The underfunded amount only looks at what you've done in the budget column (which was subtract the thousands from savings to add to the tax category).

    Someone may have a better idea, but that's the first thing that comes to mind.

    Like 1
      • TheTabby
      • Just a common cat trying to budget uncommonly well.
      • TheTabby
      • 1 yr ago
      • 1
      • Reported - view

      Yup, that's exactly what's going on.  The goals only look at what's in the Budgeted column when calculating your progress. 

      I like the suggestion Move Light Sound Life made, because it will keep your reports nice and clean, but still give you the goal clarity in the current month. 

      The other way you could do it, is tip make a $0 split transfer, with $3,000 coming out of your Emergency category, and $3,000 going into your Tax category.  This has the advantage that you could leave yourself a memo on the transaction for your future reference, but if you ever run some sort of a report on your Tax category, the income-via-transaction event will make it look like you spent a total of $3,000 less on taxes.

      Like 1
      • ladylapis
      • ladylapis
      • 6 mths ago
      • Reported - view

      TheTabby  Thank you for the $0 transaction idea!  I just moved $1000 from Checking/Uh Oh Fund to Savings/Emergency Fund, and the yellow underfunded was really bothering me.  I created a new account named Moving Money to hold these  transactions.  It will be great for tracking where the Uh Oh and Emergency funds get spent over time.

      Like
      • dakinemaui
      • dakinemaui
      • 6 mths ago
      • 2
      • Reported - view

      ladylapis It sure seems like these fake transactions take more effort than simply reestablishing the goal in next month's area. It's literally Edit the goal then click OK. Done.

      (No, this won't work with a Spend By Date goal.)

      Like 2
      • DexterCat
      • DexterCat
      • 6 mths ago
      • Reported - view

       TheTabby I “discovered” the $0 split transaction trick a while back. I even have a dedicated account for them so they don’t clutter a real account. I find it particularly useful if I want to move money from one category to another but still show how the categories were originally funded, if I want to show that my personal spending category has contributed an amount to the family holiday category for example. I also find it useful for controlling my personal spending, I have an auto transaction that drip feeds $10 per day into my personal spending category. This way I’m less likely to spend all my fun money in the first half of the month. I’m glad I’m not the only one using it. 

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      • dakinemaui
      • dakinemaui
      • 6 mths ago
      • 1
      • Reported - view
      DexterCat said:
      I have an auto transaction that drip feeds $10 per day into my personal spending category

      I suggest that you also have a monthly transaction to move it out of Personal (at the beginning), so the drip acts as a series of "returns". Otherwise, averages and reports will indicate you spent $0.

      Groceries is another category that often benefits from such pacing.

      The Toolkit Extension makes this very easy, with a Pacing feature (on-screen indicator). No wash transactions necessary.

      Like 1
      • DexterCat
      • DexterCat
      • 6 mths ago
      • Reported - view

      dakinemaui The categories I use it for aren’t ones I’m interested in reports for so it’s not an issue but what I have is two categories, one named “DexterCat Monthly Pay” and the other is “DexterCat Spending”. The monthly pay one gets budgeted my full month of spending money then it drip feeds that money into the spending category. From a family budget perspective, all I care about is that a lump of money has been given to me for discretionary spending. 
       

      I have tried the tool kit off and on and never really got on with it. The pacing does serve a similar purpose but I don’t find it works as well at curbing my spending habits as having a category that has limited funds in it. I find I’m quite motivated to avoid my spending category going into the red. 

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      • dakinemaui
      • dakinemaui
      • 6 mths ago
      • Reported - view

      DexterCat Right, so by budgeting into DexterCat Spending instead, a monthly recurring transaction moves that amount from Spending to Pay (or what I would call a Reserve). Same ongoing effort but with accurate averages/reports.

      I am mainly using this as an example for other readers at this point. If you're happy to ignore averages, that's cool, too. 👍

      Like
  • Goals are fairly simplistic as others have said. I would edit the goal in next month's area to re-establish it there, leaving it out of the current month.

    Like
  • I have variable income as well, and I've found it much easier to target my average income in the budget outlay.  When I get more income than that, I stash it in a holding category (Deferred Income). When I get less than average, I move the shortage from the category to TBB.

    Thus, I no longer have variable income as far as budgeting the rest of the budget. The consistent amount reduces errors and allows better priority trade-offs.

    Oh, and cross your fingers that the high months happen before the low ones! 😉

    Like
    • dakinemaui How do you initially categorize funds that go to the Deferred Income? And when you use money from your Deferred Income do you move it to TBB directly or do you search for it under all accounts and then recategorize it to TBB? 
       

      Like
      • jenmas
      • jenmas
      • 6 mths ago
      • Reported - view

      B's Gambit Deferred income is a category on your budget page just like any other, you move the money out of the category with the move money tool or by negative budgeting in the budget (left) column.

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      • dakinemaui
      • dakinemaui
      • 6 mths ago
      • Reported - view

      B's Gambit It's a good question. Either works, but how it comes out must match how it goes in so reports are not skewed. The biggest difference is the amount of effort, and I think it's MUCH easier to use budget entries. (The other option is to mess with split transactions.)

      I have the nominal income amount right in the category name for reference.

      Like
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