drawing down account, (entering transactions manually)

Hi I'm a new user 

My situation: I have savings which needs to offset negative cash flow for 7 years (short version: divorce and limited income); I put in my actual bank account balance but my budget screen looks like I have a ton of extra money and I need to make it last. 

Should I put in a fictional balance or any other suggestions to make sure I don't draw down too quickly?

Thanks, looking forward to what I hope will be a new lifestyle with ynab

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  • YNAB is all about categories. You split up your funds the way you plan to spend them OR save them. Make a Draw Down category for the funds you intended to draw from over time. Put the rest in monthly categories you plan to spend from.

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  • Thanks, as an example if I were to have $80k in savings, I make $5k and pay out $6k, Do I put $74k in my Draw Down category for this month? and nothing for subsequent months because I'll be transferring out of that? I assuming I won't create a transaction corresponding to that budget? 

    Thanks

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      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 3 wk ago
      • 3
      • Reported - view

      Coral Jackal Yes, if you don’t spend it or move it to another category, it remains in the category from month to month. For your example, you’d put $79k in Draw Down and distribute the remaining $1000 among your monthly categories to supplement your $5000 salary making it effectively $6000 to budget in monthly spending categories.

      Then next month, you’d move $1000 out of Draw Down to supplement your income. Rinse and repeat every month.

      But like you said, depending on when you get paid, you could start with the full $6000 in TBB and the $74k in Draw Down and apply this month’s pay to next month. This way you can budget an entire month at once and not depend on the timing of your paycheck(s).

      Like 3
    • Superbone Thanks I'll try that! I appreciate the help.

      Like 1
      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 3 wk ago
      • Reported - view

      Coral Jackal Of course! Give it some trial and error and keep asking questions until it makes sense to you. And welcome!

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