Difference between using "Add Transaction" to budget and using "Budgeted" on main page
I tried finding the answer and forgive me if this is stupidly simple. But I started out making a budget according to YNAP's directions and entering my bills in "Add Transactions" and setting them to monthly, biweekly, etc. Then I took a class with Dave and he didn't do that. He made his budget using the front page and going down the list. Can anyone explain why I would choose one over the other? I am like sitting at Starbucks trying to get all of this done today. :P
Adding transactions is not assigning jobs to your dollars. It is planning moves of your money in and out of your accounts. Assigning jobs to your funds on the budget page is budgeting. Accounts and budget are separate but related. Read this about the relationship between the two.
Before you create all of your scheduled transactions, I would recommend going to the budget page and assigning all of the funds in To Be Budgeted into your various categories. Prioritize any money that needs to be spent before your next paycheck arrives. Don't forget that you need to assign funds to the credit card payment category to cover the existing balances on your cards. Once you know that you have the money in the categories, you can go into the accounts page(s) and create scheduled transactions for your upcoming bills.
Also, I know many are super excited about the importing of transactions from your financial institutions, but I highly recommend manual entry with import as a back-up/double check. Do I enter all of my transactions while standing in line to pay? No. But every transaction gets entered by the end of the day. I never have to wait for a bank or credit card company to clear a transaction so that I can know that my category balances are accurate.Reply
Hi Steel Blue Foal !
Using the Scheduled Transactions (by clicking Add Transaction) is your way of telling YNAB what you need to cover in your budget. If you enter an upcoming transaction for $50 in your Transportation category, YNAB knows you need $50 in that category and the Available amount will be yellow until you budget the needed $50.
Budgeting funds (entering amounts in the Budgeted column), tells YNAB what you plan to do with your funds. Let's say you have $75 in your account, so you budget $50 towards Transportation to cover that upcoming transaction, and then you can put the $25 towards a different category.
Using the Add Transaction option is creating a Template - an outline for what you need to do in your budget - while Budgeting your funds is how you actually plan to handle your funds. :)Reply