Negative Bank Balance with Budget Money Available?
I really messed up. I just reconciled against my bank statement and now I have a negative balance in YNAB. What I can't figure out is why I still have money allocated in the Available column of my budget. If my bank balance is negative, shouldn't I have $0 in the Available column? How do I correct this?
Do you have a negative bank balance at your bank? When you reconciled, did you let YNAB enter an automatic adjustment? If that's the case, you can simply delete it and redo the reconciliation.
From your post, it's not clear which part you messed up. Did you mess up the reconciliation so your YNAB account balance is different from reality? Or you didn't mess up but you don't understand the result in your budget.
For money in Available, only new expenses will change your Available. If the negative comes from a reconciliation, then it likely means you have an automatic adjustment entered and that will change your To Be Budgeted, not your Available in your categories. You may have a negative To Be Budgeted that balances out the Available column. Also, if you have savings on budget, these might be more than the negative in your other account and hence you still have money in your budget.
The location (account) of dollars is managed independently from the purpose (category).
The easiest way to make cash-flow decisions (when to move funds) is to use the running account balance in conjunction with scheduled transactions. You can see at a glance when you might be short or you have an opportunity to move some to a higher rate account for additional interest.
Hey Tomar012 ! Are you reconciling using a balance from a statement (past date), or your current balance from the bank? Since you mentioned statement, I wanted to check—use the latter, and compare that to the cleared balance in YNAB.
Our Video Course has a couple of short videos on reconciling that I think you'll find helpful!
I think I figured out what I was doing wrong. When I got paid (TBB), I distributed the money among all my budget categories with the exception of my savings categories. I did not realize that I needed to allocate money from my paycheck (TBB) to the savings categories. It seems kind of obvious when I think about it.