Account I Do Not Want in YNAB...
Hi, Need some help. I've been using YNAB and linked my CC and checking accounts. I have a savings account (with a good amount of money in it) that is funded when I receive bonuses. I use that savings account for 3 things: vacation money, emergency fund and cash savings. Easy example: This savings account has $100K: $10K for vacations, $25K for emergency fund and $65K for cash savings)
I do not want this account to appear in YNAB. But I do need to transfer money into it (when I get a bonus) and transfer money out to my checking (like when I need to buy plane tickets for my vacation). How do I do this? How would the transactions appear and what categories would they be?
And also... should I be "budgeting" some of this money for vacation or emergency categories- or just use it when I need it?
I appreciate any help.
Why not just include the account, and set up vacations, emergency, and savings as categories? Seems like that would be the easiest fix and would make transfers, etc. very simple.
But in case I'm missing something - you could just do transfers out as a "bill" you pay. Bonus comes in and then you pay out to the savings account. Then to buy plane tickets, you treat it as a paycheck and budget it to whatever category your plane tickets go in.
But again, just including the account in YNAB is the simple way.
Include it in YNAB. Use your categories to budget and save additional funds for vacation, EF and any other savings.
And read this:
If we all had a nickel for every time.... 🙂 As Superbone points out, this is a very common question for people starting with YNAB, especially those who have some actual money set aside in a savings account. Those of us who have YNABed for a long time will always recommend that you try out the software as intended before you try to bring along your old method of organizing your finances.
Keeping the savings off-budget is essentially clinging to budgeting by account, and that will work in YNAB, but it won't work very well, and there are some repercussions of doing so that affect your options in reporting that you probably won't be happy with at some point in the future when you start looking at reports. Read the blog linked in nolesrule post. I recommend you go so far as to bookmark it to read it again later. (I had to read it multiple times for it to sink in - I had a lot of accounts.)
Let me just say that the beauty of putting your savings on-budget is the ability to assign funds in the one big savings account to multiple specific purposes by just moving numbers around on the budget screen, and this gives you a much better sense of just how much you have for each purpose, and how far it will go if your plans change on you. I much prefer this view to the vague lump sum of "savings" that I have to assess with a calculator. This is what my "savings" type categories look like in my budget, as an example: