Why is my To Be Budgeted amount higher than bank balance?

I'm three months in to trying to get the hang of YNAB. I really like it but am trepidatious right now because my To Be Budgeted amount is higher than what it's in my back account. I checked what I've budgeted for in July and it's only $50 so far.

What am I missing? I've really loved how this software has helped me rethink spending and don't want to give it up. Trying very hard to understand it. I don't want to budget out the money in my To Be Budgeted amount if it's not really there.

Thank you!

ETA: I have one checking account. One cash on hand account (with $0 balance) and one account where I track transfers to my joint savings for upcoming tax payments. (That account only has six transfers in it and hasn't changed.)

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  • I have enabled the ability for YNAB to take a look at my account. Thank you!

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  • What is the total amount for the BUDGET section in your left-hand sidebar? i.e., you should see the word BUDGET in all caps, followed by your list of accounts, and next to the word BUDGET there's a dollar amount. What's that amount and how does it compare to your To Be Budgeted?

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      • YNABing
      • Cadet_Blue_Mask.3
      • 1 yr ago
      • Reported - view

      mamster 

      My BUDGET (from the left-hand side bar) is $11,092.17. That is correctly the sum of what I have in the account I transfer for tax payments, $6,161 + the account in my checking $4,931.17.  (And $4,931.17 reconciles exactly with my actual bank website).  So $6,161 + $4,931.17 = $11,092.17.

      My concern is that my To Be Budgeted amount for June is $5,976.62. That's $1,045.45 MORE than I have in my checking account. (Checking account = $4,931.17)

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      • mamster
      • mamster
      • 1 yr ago
      • 3
      • Reported - view

      YNABing  Aha! Remember that all of your money in ALL of your on-budget accounts is reflected in Your budget. That means your available amounts (in your categories) plus your To Be Budgeted will equal that $11092 amount. If you want to set aside more money for taxes, move money from To Be Budgeted into a category for that purpose.

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      • YNABing
      • Cadet_Blue_Mask.3
      • 1 yr ago
      • Reported - view

      mamster Okay, let me go to the budget and try to sort this with the information of 'available amounts (in my categories.) I'll be right back :)

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      • YNABing
      • Cadet_Blue_Mask.3
      • 1 yr ago
      • Reported - view

      @mamster,  okay trying to wrap my head around this, and I really want to learn it and understand it so I can master this budgeting thing. 

       

      Talking about June.

       

      Total Available (in my categories) = $5,065.55

      To Be Budgeted = $5,976.62

      = $11,042.17

      If I add the $50 I have saved in future for July it does equal my BUDGET number from the left-side area, so $11,092.17

       

      It's good that it seems these numbers are adding up. Yay. However, I'm still struggling to understand.

      Why would my To Be Budgeted number be so high and why the difference between what to budget (TBB - $5,976.62 versus what is Available ($5,065.55)?  And why still the difference between what is in my bank account? ($4,931.17). I really want to trust the software but I need to understand fully.

       

      Thank you.

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  • For reference, to help understand what mamster has pointed you to above: 

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

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      • YNABing
      • Cadet_Blue_Mask.3
      • 1 yr ago
      • Reported - view

      WordTenor thank you. This makes sense. The difference between location and job. I'm still not understanding the difference between TBB, Available (in categories), and why the discrepancy with my actual checking account.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 yr ago
      • 1
      • Reported - view

      YNABing TBB is money in your accounts that has not been given a job, meaning it has not been assigned to a category yet.

      Anytime you add a new account with a positive balance or receive new income, your TBB will increase, and the nyou have to assign that money to your categories.

      Like 1
      • YNABing
      • Cadet_Blue_Mask.3
      • 1 yr ago
      • Reported - view

      nolesrule hi there, I do understand that it needs to be given a job. I don't want to give it a job if the amount is more than I actually have in my checking account.

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      • mamster
      • mamster
      • 1 yr ago
      • 2
      • Reported - view

      YNABing You are SO close to getting this!

      Please read the article that WordTenor posted. In YNAB, you give ALL your dollars jobs. This feels weird at first if you're used to partitioning your money out using separate bank accounts. But it's one of the best features of YNAB.

      In your case, it sounds like some of the money in your second account has the job.of paying taxes. That's great. In YNAB, you give a dollar a job by putting it into a tax category. I'm self-employed, so I have a Quarterly Tax category. I put a percentage of my profits into that category, and it sits there, ready to do its job, until the quarterly deadline rolls around. I don't know or care which bank account that money lives in, because I know that YNAB is making sure that I don't spend it on anything else.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 yr ago
      • 3
      • Reported - view

      YNABing You have to give jobs to the money in all your budget accounts, not just the checking account. Since the account you transfer money to is also on budget, you have to give that money jobs also. If it's for paying taxes, then create a tax payment category and budget it. When the money comes out for the taxes, it gets spent like anything else.

      Like 3
  • Hi YNABing ! Since you've enabled Support Access, I went ahead and sent you an email with more detail. 😄

    The amount in To be Budgeted includes your checking, savings and cash accounts. To be Budgeted is the sum of the four values to its right. Here's more on how that number is calculated!

    Funds for [This Month] is the total of:

    • the amount leftover in To be Budgeted from last month
    • the amount Budgeted in Future from last month
    • all Inflow:To Be Budgeted transactions in cash accounts* for the current month—including Reconciliation Balance Adjustments
    • any Starting Balance transactions in cash accounts in the current month
    • any positive credit card balances in the current month
    • any cash advances from a credit account to a cash account in the current month

    *Cash accounts are checking, savings, and cash accounts listed as Budget accounts (not credit cards and any Tracking accounts).

    From that amount, YNAB subtracts the following three values:

    Overspending in [Last Month] is the total of all cash overspending in the previous month. If a category has any cash overspending, the Available amount will be red. Select the category to see the specific amount of cash overspending in the right sidebar (as it could be a combination of cash and credit overspending).

    Budgeted in [This Month] is the total of the Budgeted column in this month. 

    Budgeted in Future is the portion of this month's funds budgeted in future months.

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  • nolesrule writes: 

    Since the account you transfer money to is also on budget, you have to give that money jobs also.

    If the taxes will be automatically pulled out of that secondary account, I would remove that account from the budget. Use a Tax category to budget for the monthly (?) transfers and consider that money "spent" at that point (from the standpoint of the budget).

    A corollary of that location/purpose blog post is that if you ever find yourself trying to synchronize a category and an account balance, that's an indication that money should probably not be on budget.

    Use a Tracking account if you must have the balance in YNAB (and are willing to keep it updated) or just leave it out of YNAB entirely for simplicity.

    Like 3
  • It took me awhile to dig into this but the suggestions on this thread, and ultimately the videos and hand-helping provided by Nicole at YNAB through email helped me figure it all out. 

    Theoretically I understood that I had to give every dollar a job, but when I transferred my tax payments to an account I called Tax Payments I thought the act of transferring those dollars was giving them a job. Their job was to sit there until I made quarterly tax payments (I'm a contractor.) mamster and Nicole from YNAB helped me see that I actually needed to assign them to a category, ie, create a category called Tax Payments and send them there.

    Once I sorted that out, voilà, my accounts got back in order and I felt confident (indeed, I could clearly see that my Total Available matched what was in my checking account. )

    I'm officially in my 4th month of using YNAB and feeling really empowered with learning how to truly budget my money.

    Thanks, all!

    Like 4
  • So glad I found this thread! I had the same problem and struggle to understand the relationship between by various balances. Thanks for all the great info!

    Like 2
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