Is my budgeted amount covered by account?

I am about 7 weeks into YNAB, and am concerned that the amounts shown in each item  are actually funded.  Maybe this is a silly question, but, I totaled the amounts from each category, which equals the amount of my checking and savings account.  I am only paying bills from my checking account, so I am questioning whether I have "overbudgeted" so that I am really in the negative (the exact amount of my savings).  How do I know that I really have the amounts shown (in my digital envelope) from my checking account.  Or, did I blow it?

 

Thanks

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  • YNAB doesn't care in which account your money is.

    In YNAB you give every dollar a job. That includes dollars in any account, like savings, checking or cash. So the budget envelopes should include your savings. Your savings should be assigned to the job you want them to do.

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  • your accounts indicate WHERE you money is.  your categories (budget) indicates WHAT your money is reserved for.  So if you have enough money in your category, then you can afford the item.  If you're paying by CC, just buy it, and you'll pay it off when the CC payment comes due.

    if you're not using CC then you need to make sure that the account you're paying with has enough money.  If so, then purchase it.  If not, transfer money to that account (the actual account, in your bank... not just a YNAB transaction) and pay for it.

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    • Bruce My confusion, I guess, is that if I want to save  money for to protect against some economic calamity, I should be budgeting for that and give money that job?  It appears to me that I have budgeted $0 for that (my savings is tied to some future spending), so I have all of my money allocated to everything else--a bad position to be 

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      • Bruce
      • Software Engineer
      • Bruce
      • 3 mths ago
      • Reported - view

      Steel Blue Ink yes, some money should be set aside for savings. Just create a category for whatever savings you want. And budget some money into it. 

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  • Steel Blue Ink said:
    if I want to save  money for to protect against some economic calamity, I should be budgeting for that and give money that job?

    Yes, that is true. I have categories for an Emergency Fund, House Maintenance, Car Maintenance, Vacation, New Gadgets, etc.

    Steel Blue Ink said:
    It appears to me that I have budgeted $0 for that (my savings is tied to some future spending), so I have all of my money allocated to everything else--a bad position to be 

    I'm not following you. You only have so many funds. You have to categorize them to what is most important to you. What are your savings tied to? It should be divvied up into categories. It then takes time to fill all categories. You can't do it overnight unless you have all the funds you need currently to do that.

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    • Superbone Just to Illustrate, right now assume I have $1,000 in my checking account, and $500 in my savings account.   I have a number of bills to pay (food, mortgage, insurance, etc.).  They total $1,500, so I have the money to pay everything from both checking and savings.  However, I want to "save" my savings, and not use that amount to pay any bills. Can I transfer that $500 in savings into a "savings category", and not be "short" $500 for the rest of my bills? Or, am I really at $0 for emergency savings, and have to start building that nest egg, because I have committed my savings account to paying bills?

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      • Bruce
      • Software Engineer
      • Bruce
      • 3 mths ago
      • Reported - view

      Steel Blue Ink that is correct, if all of your money is going to categories that must be used before your next income then you will not be able to put any into savings. 

      However, if you can wait until your next paycheck to cover some of the other items, then some of that money can be put into savings and next check will cover those other expenses. 

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    • Bruce Yes, I think when I first started my budget, i should have created a category for "emergency", and immediately funded that with my savings account.  Then, only my checking account funds would have been used for assigned jobs for bills, etc. I didn't think that at the time of set up, YNAB would add savings and checking, so that I allocated the total amount.  My bad.   Thanks for the help.

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      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 3 mths ago
      • Reported - view

      Steel Blue Ink Yes, you are correct but it's not too late. You can reassign funds to savings categories. YNAB makes it easy to move funds from one category to another. Now, whether you have enough funds to pay your bills and set some aside for savings is another story...

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      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 3 mths ago
      • Reported - view

      Steel Blue Ink One other thing to mention if you are new to YNAB is that you don't have to fund the whole month at once. If your first paycheck covers only half of your month, then only budget categories that need to be used until you get your next paycheck. Then when the next paycheck comes (assuming 2 per month), you can fund the other upcoming expenses. All the while, leaving some funds parked in savings categories. Eventually, you can work up to being a month ahead where you can fund the whole month at once.

      In other words, don't pull from your savings categories unless you have to. YNAB is all about funding your priorities.

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    • Alemap
    • Everything should be made as simple as possible, but not simpler -Albert Einstein
    • alemap
    • 3 mths ago
    • Reported - view

    Note that  a savings category doesn't automatically equal a savings account. If you're worried about whether you have enough in your checking to cover expenses, you may consider moving more into your checking to relieve that stress. 

    For simplicity, I keep funds in my checking account for current month, true expenses, and next month's budget--I consider some of those to be savings categories. Anything above that goes into my savings account for my emergency fund. I've only recently gotten a month ahead--as that solidifies, I may start moving more into my savings account--we'll see.

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