Where to but the budget for future months

New to YNAB. I have 3-4 months of money sitting in my old emergency fund savings account. Should I 1 create a category called 3 Months Savings and just keep it in there or 2 actually fill out the budget for then next 3 months. I can see pros and cons to each so I'm wondering what others do. 

My income and expense are pretty regular and I've been tracking them for year before YNAB so I have a fairly good handle on them and built out a budget template. Any over spending I do I pull from categories in the same month and wouldn't pull from future months.

Also as this month is fully budgeted on day 1, I was putting my paychecks into a Next Month category and then when a month rolls over emptying it to 0 and allocating it for the new month. Then that month's paycheck fill it up again.

I'm trying to get a better handle on how much cushion I need so I can direct over savings to larger goals (paying off mortgage, saving for house down payment, new car etc).

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  • I have an Income Replacement category. If I didn't have income, I would simply move a portion to TBB and budget as normal.

    I find budgeting past next month's area to be counter-productive, since bill amounts and priorities shift over time. I only need a couple clicks to budget for the month, and going further actually requires more work.

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  • Your first inclination was the right one. Create a category and put it in there. You’re living on last month’s income so that’s great. One month ahead is optimal. Further months are not as any changes in earlier months ripple out to all the future months. Just save up as many months of income as you think will make you comfortable in your category. 

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