Savings Account Totals and "To Be Budgeted" Amount
I have 10+ savings accounts that I put money into each month. When each month starts and I receive my pay check in my checking account, the "To Be Budgeted Amount" includes the total of all savings accounts and the checking. I don't want my monies in the various savings accounts to have a "job". I only want to budget the amount from my checking account. How do I accomplish this, or do I need to delete all of my savings accounts?
linked YNAB blog article: The Relationship Between Your Budget and Your Accounts: It's Complicated
This linked article helps to explain how in YNAB, we don't budget by account(s) anymore and learn to rely on our budget categories to guide spending. We give every dollar a job in the budget. That job might well be a savings job, and you might not intend to spend it for a year, five years, or in the case of an emergency fund (hopefully) never.
I too started YNAB with 10+ savings accounts. Soon after starting, I saw the power of using categories to guide my spending instead of specific bank accounts or the balances in them. I started transfering funds and shutting those accounts down. I could now safely keep my Christmas money and my medical/dental fund and my car repair money and my emergency fund money all in the same savings account without fear of coming up short or accidentally spending the wrong funds. Best practice is to have your savings accounts be on-budget, create the appropriate categories for what you intend those funds do, and budget the balances of those accounts to those purposes. Once budgeted, the funds stay in those categories until you spend them or move them.Reply
I'm not a fan of having a single "savings" category. You are saving that money for reasons. Create categories named for those reasons. It'll help you see that you are approaching your savings goals, and also if you plan to spend it, (consider saving for a vacation, or an IRA contribution, or a new car, or summer camp for the kids), you already have a category you can use to assign to the spending transactions.Reply