Savings account understanding

So I have a savings account set up on 'on budget' and I assign so much each month on my budget.

When I transfer over to the account there is no category to assign and it shows on the budget as 'assigned' and not 'activity' with the 'available' amount growing each month.

Is this how the account should work? When I spend from it, I then assign it a category right.

Obviously, my budget amount in the left-hand column includes my income plus the saving account, but I just budget from my income.

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  • Your budget funds are a pool of all the funds from all on budget accounts. When you first start YNAB, you budget all of it. Some to savings categories and some to spending categories. In future months, you’ll only have your new income to budget. You budget to categories, not accounts.

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      • Ivory Mill
      • Ivory_Mill
      • 3 mths ago
      • Reported - view

      Superbone so my actual budget would look like this?

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      • nolesrule
      • Stealing From the Future fix is an improvement but is incomplete....
      • nolesrule
      • 3 mths ago
      • 1
      • Reported - view

      Ivory Mill Figure out what you are actually saving that money for and put it in categories with that name. "Savings" is too generic. You must be saving for something(s).

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      • Bruce
      • Software Engineer
      • Bruce
      • 3 mths ago
      • 5
      • Reported - view

      Ivory Mill Just reiterating what nolesrule said, think about what you want that money to do.  Is some of it for car repair?  Set up a Car Repair category and move some of that money there.  Is some of it for Income Replacement?  Set up an Income Replacement category and move some there.  Is some for pet emergencies?  put some in there.  you get the idea, don't just say "savings" that's too general.

      One thing that happens when you have a "savings" bucket is that you start thinking, well, I could use that to fix my car OR to replace the water heater in my house, OR to take care of my cat if it got into a fight and needed emergency care.  And pretty soon your brain starts changing those ORs to ANDs and now you've double (or triple?) booked your dollars.  If you give each dollar a specific job, you see how far they can go.

      And of course you can always borrow from one savings category to cover a large expense in another.  Then you'll just have to start re-building them back up.

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      • Cash
      • Cash
      • 3 mths ago
      • 2
      • Reported - view

      In addition to double and triple counting the purpose of savings dollars, it's difficult to evaluate relative priority with everything under one savings umbrella.  It's far easier to think of specific items you are saving for.  "Do I want this pizza today more than I want a new bike?"  Maybe.  But, what if the kid's college fund is also in "Savings"?  How do you know how much you can reassign to pizza money?  Specific savings categories helps solve for that problem.

      Like 2
  • For example, my Savings master category contains the most categories of any of my master categories. 15 in all. Here are a few of them: Vacation, Gifts, Computer/Software, Gadgets, Christmas, IRA, Charity, Car Replacement, E-Fund.

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  • Hi Ivory Mill ! For a deeper dive into this concept, check out these two articles:
    What's the Difference Between Budget vs. Bank Account?
    How Much Should I Keep in Checking?

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