My current checking balance is less than the To Be Budgeted balance. Where should I budget?
I have $5000 funds for November. I have set goals for all of my categories and I have chosen to send money from To Be Budgeted to my bills, grocery, and gas expenses. After this my To Be Budgeted in $2,600.
I have $800 in my checking account. Should I send more money from To Be Budgeted to categories like Gifts or Vacation Savings? Or should I wait until I have more than $2,600 in my checking account from pay checks? I feel like I am misunderstanding this step.
Hi Lightning Blue !
YNAB works a bit differently from most other budgeting software. Instead of entering how much money you expect to have in November, YNAB generates your To Be Budgeted amount based on your current positive account balances.
If you have $800 in your Checking account, your To Be Budgeted should be $800. If you have $80 in your Checking account and $4,200 in a savings account, then your To Be Budgeted will show as $5,000.
You should only budget using the dollars you currently have, so if you have $5,000 because of savings - budget all of those dollars. What are you saving for - a vacation? Rainy day? Here's an article that talks about how savings work in YNAB. Savings accounts are purposefully included as a part of your budget, because we want you to give those dollars a job too!
When you have a moment, take a look at our Ultimate Get Started Guide, which has some great videos and step-by-step instructions for getting started!
Funds can be moved between accounts without changing the plan (a k.a., the budget) for how much you want to spend on various things. Read this: