In addition to my checking account, I have a savings account linked to my YNAB. In my monthly budget I have an amount for "Savings", that I actually transfer to my savings account from my checking account.
But when I make transfers to my savings account it says "category not needed", but if there is no category then there is no activity. If there is no activity then there is no "use" of that money in a month. So where is that money in my budget?
Does this mean that by budgeting a savings category and having no activity, when I'm at $0 to be budgeted I'm actually over budgeted by the amount of my savings?
You save money by budgeting it to a category and not spending it. What accounts you hold your money in are a separate decision.