Best way to remove temporary inflow from on-budget account?

I am expecting to receive some money as a direct deposit to an on-budget linked account. I plan to transfer the entirety of that deposit to an off-budget unlinked emergency savings account at another bank almost immediately.

My question is: What's the best way to remove/prevent those two transactions (deposit & transfer) from affecting my budget & reports? Do I wait for both to occur and then reject them? Confirm them, then delete? Will this be problematic with reconciling or importing in the future? I've never tried to undermine the direct importing mechanism before.

My goal is to avoid an irregular spike in the net worth report and pretend that money was never available to my budget. Essentially treat it as if it were originally direct deposited into this off-budget emergency account.

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  • Just use the same category for both inflow and outflow and ensure they are dated for the same month. Fudge the outflow date if necessary. The category can be anything you want.

    If you use TBB as the category, use the same payee so it will show $0 income on a report.

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    • dakinemaui So if I understand correctly: As long as both transactions are in the same category and occur within the same month then it should not factor into the net worth report?

      What about deleting or rejecting the transactions? I mostly just want this event to be invisible to YNAB.

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      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 10 days ago
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      • Reported - view

      Forest Green Sound 

      You can delete the two pass-through transactions if they cancel each other out without damage to your budget or your ending account balance. I would recommend you leave the entries and just enter a 0 value in both.

       If I do delete the inflow and outflow, I will leave  the entry in place and just make the inflow and outflow 0.  That way I have the dated entry(ies) in place if I ever have to look back and double check timing on something or as an explanation for the pass-thrus.

      The one example I have that comes to mind:  I received a cheque from one sibling to pay some bills for another sibling who was in crisis. I didn't want that to have the inflow or outflows affect my networth or my averages, but I did want to keep track of the dates for reference. I noted the amounts in the memo field as well.

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      • dakinemaui
      • dakinemaui
      • 10 days ago
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      Forest Green Sound said:
      As long as both transactions are in the same category and occur within the same month then it should not factor into the net worth report?

      Correct. Don't be afraid to experiment. Go ahead and enter 2 test transactions for a million dollars to convince yourself and Undo afterward.

      Like 2
  • Alternatively, make the savings account part of the budget so you can accurately reflect jobs for your money.

    Like 2
      • dakinemaui
      • dakinemaui
      • 10 days ago
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      • Reported - view

      OP, this is the recommended practice. It makes it easier to grow the emergency fund as well as use it when needed.

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    • nolesrule Certainly that would solve my dilemma. And I know I'm going against the strict interpretation of YNAB by keeping an account hidden. But in my case, the Emergency fund has always been off-budget. Like a 401(k).

      If any of the fund is to be spent, I first transfer the amount into an on-budget account, budget it, and spend it from there. It's like giving myself a paycheck.

      So none of the Emergency fund has a job right now...it's sole job is to be available in a worst-case scenario. Having it on-budget in a funded Emergency category would only tempt me to re-allocate to other categories or savings goals.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 10 days ago
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      Forest Green Sound

       

      Forest Green Sound said:
      And I know I'm going against the strict interpretation of YNAB by keeping an account hidden. But in my case, the Emergency fund has always been off-budget. Like a 401(k).

       An Emergency Fund is not like a 401k. It is for being able to manage your budget without taking on debt when you have an emergency.. Just because it's something you've always done doesn't mean it is something you need to continue doing.

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      • dakinemaui
      • dakinemaui
      • 10 days ago
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      Forest Green Sound said:
      Having it on-budget in a funded Emergency category would only tempt me to re-allocate to other categories or savings goals.

      You would really move money from a category called "EMERGENCY Fund" for something that's not an emergency?

      I will also state that it's no safer being off-budget. Let's say you overspend on something frivolous for whatever reason. There are only two main possibilities:

      1. All other categories need the money they have. You have no choice but to pull money in from outside the budget. So much for the illusion of off-budget being safer.

      2. One or more other categories can be cut to make up the shortage. No need to touch an Emergency Fund category.

      Like 1
  • Forest Green Sound said:
    it should not factor into the net worth report?

    No matter what you do on the transaction side, it might show up in the net worth report. Your emergency fund is entered in YNAB as a tracking account so unless you deselect it from the net worth report, the added income will show up.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 9 days ago
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      Ceeses I always wonder what the point of a net worth report is if people don't want it to show them their net worth. But maybe it's just me.

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      • Ceeses
      • Ceeses
      • 7 days ago
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      nolesrule Well, sometimes you want just a bit. For example, I have our retirement accounts in YNAB for our complete net worth. But this money is completely locked away until we are 65. No way to take an advance etc. So if we want to know if we can retire early, or if we're on our way to pay down the mortgage before retirement (Australia with offset account that complicates the calculation), we deselect them. Same for the value of the home, if I want to know how long till we cover the mortgage from the offset and liquid assets, I don't want to add the value of the home. As I don't want to have to sell the home to cover the mortgage.

      In short, people might not always want to look at a total net worth but use the report for different viewpoint on their financial situation. 

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 7 days ago
      • Reported - view

      Ceeses Net worth is net worth. You can always deselect the account as needed. Just don't call what you're looking at net worth. 

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