Self Lender App
I found this app recently but YNAB doesn’t have built in support for it. It’s called Self Lender and it’s supposed to help you build credit and save money at the same time. You make monthly payments for a year and it reports them to credit agencies for you. The money goes into a CD then at the end the money is yours. Anyway, I set it up in YNAB as an investment account and just set it up to automatically transfer to that account once a month under the Savings category. Do you think I should create a separate savings category or just lump it all together? Also, why do some transfer require categories and some don’t? Should I have made it a general asset account instead?
"Also, why do some transfer require categories and some don’t?"
Transfers between on-budget accounts don't require categories, since no money is entering or leaving the budget. You're changing the location of your money, but it doesn't affect your budget at all.
Transfers between an on-budget and a tracking account require a category, since money is entering/leaving the budget.
Personally, if this money is going to be inaccessible to you during this time period, I'd set it up as a tracking account. If you leave it on budget, then make sure you have a separate category for it so you separate that money from the rest of your savings.
Hi Jeff Altman !
Just in case it wasn't clear in the above, the "Investment Account" option in YNAB, is a Tracking account - so your transfers to that account will require a category because those funds are considered as "leaving" your budget.
Since you'll need to categorize those transfers, you may want to create a "Self Lender" category. In your reports, this will tell you how much you're "spending" on saving. :)