Handling Savings Accounts and transactions from savings accounts

OK.  I need help.  For argument's sake, let's say I have a checking account, a credit card account, and a savings account.  I have created a YNAB budget with categories for spending, including costs that occur annually.  In my "real world" finances, my pay checks are automatically deposited into my checking account.  Each month I use my checking account to pay off my credit card expenses, fill my budget categories, and transfer money into my checking account.  So here is where I am confused.  Again, in the real world, when I have a large expense that can't be paid from balances in my checking account, I pull money from my savings, transfer it back to checking, and pay through my checking account.  When I try to do the same thing in the YNAB program, I can't.  It makes the numbers all go crazy.  

How should I set up my real world accounts and my ynab accounts to reflect what I am doing without everything going nuts?  Does the Savings Category respond differently than other categories?  I want to talk with a live person at YNAB, and of course, they just send me another tutorial that doesn't answer my question.  Can anyone offer some help here??

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  • Thinking about my above question, maybe I just don't reflect my "real world" savings account in YNAB at all.  Then I don't have to deal with the wierdness of transferring funds in and out.  Thoughts?

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  • Are both your savings and checking accounts on-budget? They should be, and if they are, a transfer between them doesn't affect your budget at all, because YNAB doesn't care which on-budget account your money lives in.

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  • Keep all your accounts on budget and read this article:

    The Relationship Between Your Budget & Your Accounts: It’s Complicated

    Keep reading it until it sinks in.

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    • nolesrule what about College Chet and ESA funds for investment savings purposes? These will be funded by on budget checking accounts but I cant touch them in the sense of using them for paying budget expenses, etc - do they still go on budget and then just allocate their current balances as budgeted ?

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    • Turquoise Hail I wouldn't even put such accounts into YNAB. Use a category to reserve those funds while they're in a budget account, but the transfer out of the budget is treated as spending. In other words, treat those contributions as you would any other bill.

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      • WordTenor
      • I'm the oldest and the wittiest.
      • WordTenor
      • 2 wk ago
      • Reported - view

      Turquoise Hail 

      ...

      didn't you just ask this question someplace else? Or are you a different Turquoise Hail? 

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 wk ago
      • Reported - view

      Turquoise Hail The answers you were supplied in your other thread are the recommended approach.

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    • dakinemaui Why Not - I would like to track the progress of them and set a spending goal on them - if they are not in YNAB altogether then I can't really progress with them.

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