New Year Plan: Fresh Start? Or Just Continue On W/ Current Budget
I started YNAB Jan 1st, 2020, have used it successfully throughout this year, and plan to continue using it in 2021. So...what's your view on the best approach:
1) Continue along - Jan 1st 2021 is just another day, use the same budget started last year, maybe tweak some categories, goals, but otherwise, same old same old....
2) New Budget - Close out the 2020 budget as an archive, use Fresh Start to bring over the core info (balances, recurring transactions) and tweak as necessary
I can see advantages in both... Option 1 handles issues like January 2021 credit card refunds to December 2020 category spends much more gracefully....Option 2 'closes out your books' like a business, so each year can be seen as its own entity (great for business accounting, tax purposes).
Just a thought if someone really wants to make a Fresh Start. Net Worth is the one historic thing I do like to see. If I were to Fresh Start for whatever reason, I'd take the time to make a tracking account and assemble transactions that yielded the historic net worth values.
Reconcile to the first month's net worth, make the adjustment transaction, and back date the adjustment. Repeat for each month. Even 10 years should only take about 20 minutes to recreate. Second browser window open showing the historic values for easy reference.
Alternatively, making a spreadsheet of the adjustment values and importing into YNAB via CSV format could bring that down to about 10 minutes for 10 years of values.
I definitely would say that if things have been working well for you throughout 2020 then option 1 is best for now. Sit down and see what worked and didn't work for you in how you were set up through 2020 and see if the things that didn't work as well can be addressed.
I feel like Fresh Start is only a decent option if your current setup hasn't worked for you and there is no obvious way to get it all in a better order OR your budget has got horribly out of whack and cannot be salvaged.
Good luck in 2021!