Transfer between savings and checking accounts.

I manually transferred $2k from YNAB savings to YNAB checking. I don't sync with the bank. Doesn't ask me for a category. I see the monies going into my checking. But now I want to create an entry in YNAB showing the money coming out of the checking going to the contractor.  But the 2K isn't in the category I want to draw from. Please help. 

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  • http://www.youneedabudget.com/the-relationship-between-your-budget-your-accounts-its-complicated/

    YNAB does not match accounts to categories. If you don’t have $2,000 set aside in your budget to pay the contractor, you have $2,000 you thought was for the contractor set aside in other categories. You’ll need to decide which categories those are and move money accordingly. 

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  • Hi, thanks for the quick response. I guess the problem I'm having is that I have a savings account that I really don't want included in the budgeting process. I suppose I should just treat the savings like an "income" account this way I can move the monies to the categories and move them out so that I can see things coming in and going out. Doing a transfer and not seeing the monies go anywhere is just counter intuitive to me. 

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 10 mths ago
      • 4
      • Reported - view

      Bob Musumeci If the savings account is outside the budget then you aren't giving every dollar a job. If you have $2000 you are planning to spend on a contractor, it doesn't matter if the money is in the savings account or in the checking account.

      The whole purpose of this type of budget is so that you can divide up your pile of money into specific purposes. If you don't give it a purpose, then you mentally give it more than one purpose, and that's what gets people into trouble with their finances.

      If the money doesn't have a purpose until you move it to the checking account, it probably would be a better use of the money to be somewhere other than a savings account.

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      • Six Hats
      • monkeychicken
      • 10 mths ago
      • 1
      • Reported - view

      Bob Musumeci Why don't you want the savings account included in the budgeting process?

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    • nolesrule thanks all for the response on this issue; its nice to have the support. The money in my savings is almost like a rainy day fund, I don't intend on spending it until the right situation arises.  I have two checking accounts (in the bank and in YNAB that I use for known monthly expenses (mortgage, insurance etc..) and the other is for  gifts, household items, groceries etc.. whenever income comes it gets divided into the appropriate categories in those two accounts.  So while I understand the philosophy of what you are all saying I just don't feel like I needed to include the savings until I need to spend it. 

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 10 mths ago
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      Bob Musumeci In that case the savings account needs to be off budget. Treat the transfers to checking as Income and budget to the appropriate category.

      Reply Like 1
    • Bob Musumeci I'm new to YNAB budgeting, but what we did with our "Emergency" savings account is to create a budget item called "Emergency Savings", then I allocated the same dollar amount in the bank savings account to the emergency category. That way the money is both included in the budget and given a job. 

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  • Adding to what WordTenor and nolesrule have already said, it sounds like you're using "Checking" and "Savings" accounts as a coarse-grained way of sorting your money by purpose. Perhaps "checking" is for near-term expenditures, and "savings" is for longer-term expenditures.

    Some folks take that approach even further: They might have a distinct savings account for a house down-payment, another for a new car, another for vacation savings, and more. Sorting money that way provides a clearer picture of exactly where you stand with-respect-to your various spending goals. When all the money is lumped together in just a single account, it's hard to reason about it, and you'll tend to overestimate your position. 

    Obviously, the disadvantage of having lots and lots of bank accounts is that it's a management nightmare: You have to constantly deposit and transfer money into those various real-world accounts. It's usually not worth the trouble.

    YNAB's categories can be thought of as "virtual" accounts. You can keep all of your money in a single (or very few) real-world bank accounts, for simplicity of management, but then distribute it into many "virtual" accounts (i.e. categories) for greater clarity. Best of all worlds.

    Hope this helps.

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