Transfer money from Savings to an Investment Account
In YNAB, I have a savings account under Budget. I also have an investment account under Tracking. The latter is what YNAB seemed to force upon me when I created the account.
I want to transfer $X dollars from the savings to the investment account, but the app wants me to categorize the expenditure as if it's an actual expense. Do I just disregard YNAB's suggestion when I create the investment account and consider it an income source (like cash or savings) or is there another way to do this? I just don't know why I'd need to treat such a transfer as an expense.
Tracking accounts are not part of your budget and any money that leaves your budget is an expense. I transfer $X to my investment account on the 30th of every month. I have a category called Investments. I budget $X to it every month. When the transfer happens, it is categorized to Investments.Reply
The vast majority will not make an investment account a part of a zero-based budget because the balance changes behind your back. The recommended practice is to not assume that all the money in the Christmas category will make it back after a trip to the brokerage and that you should call a spade a spade: that money no longer has the job of funding Christmas; it's job is to make money.
OTOH, if you're OK with negative market movements resulting in effective "spending" -- and are willing to devote funds to cover such spending -- feel free to bring that account on-budget (i.e., as a checking account type). Reconcile/Update the account balance often enough that the difference between the YNAB and ever-changing real-world balances is negligible.Reply
Yes, I have the same Issue. In my opinion, the money in the savings needs to be considered as investment. Where as currently, even the saving money is be considered for budgeting. Causing the money in the savings to be considered for budgeting, which is not right. The solution I use is starting a category named Ïnvestment.Reply