Using Scheduled transactions with goals

I have watched the YouTube videos and read the docs on both setting goals and scheduled transactions.  While I understand how both work and seem to have overlapping benefits how do you use them together?

In the scheduled transaction video Hanna says to add a goal to the scheduled transaction.

So let's say I need to save $1500 for property tax once a year.  I could create a one time scheduled transaction, or I could create a goal.  What is the benefit of creating both on the same category??

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  • In your example, you would add the scheduled transaction for $1500 dated, say, February 1, 2022. Then in your *budget* you would add a goal of $1500 by January 31, 2022 so that YNAB will prompt you to add $125 to the Property Tax category every month so that on February 1, you've got your $1500 ready to send. 

    If you didn't add a goal, you wouldn't be prompted to add anything to that category until February 2022 when the scheduled transaction is due. So you would either need a spare $1500 handy on February 1, 2022 to fund that category, or you would need some other system to remind you to add money to the category every month (some people put the monthly amount in the category name).

    In this case the scheduled transaction is mostly a reminder to, y'know, actually send the payment when it pops from the scheduled portion of the register to the active.

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  • More generally, I used goals: 

    - for spending that happens less often than monthly (like quarterly, annually) and I want to save for them a little bit each month

    - for spending that occurs *more* often than once a month (groceries, gas) to speed up the budgeting process using the quick budget options

    - for monthly bills where the amount varies widely over the year (electric, heat) but I want to budget the same amount all the time (the balance builds up in the low usage months and drops down during the high usage ones)

    I do *not* use goals for monthly bills where the amount is the same or close to it all the time because the scheduled transaction does the job of causing a category to show up as "underfunded" at the beginning of the month and a goal would just be redundant.

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  • Vibrant thank you.  That makes perfect sense!!

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