'Category not needed'
When I transfer money from one account to another, the inflow on my YNAB is not allowing me to categorize the inflow. As a result, I don't think it is getting in my 'To be budgeted' box. For my deposit/transfer, under 'Category', it states: 'category not needed'. On the right column that gives a synopsis of activity and budgeting, my 'Total inflows' is listed as $0 although I have made two transfers into the account. What am I missing here?
Income is money coming into your system from the outside, e.g., a paycheck, gifted money, reimbursement, etc. A transfer between two accounts on your budget is simply moving the money from your back pocket to your front pocket. So if you have $100 in account A, that's the same as having $100 in you back pocket. If you transfer $10 to account B, you merely took that money out of your back pocket and put it in your front pocket.
There are a couple of blog posts on this that also explain it; I'll try to find them and link them here. Or someone else will most likely.