Breaking down starting bank balance to monthly budgeted amounts
Brand new to YNAB and I think I am not quite understanding how things work.
I have my starting bank account balance (let's say it is $2000). Part of this ($500) needs to go to rent. I put this as a scheduled payment item in the transactions section and now the budget section has taken the $2000 PLUS the $500 that needs to go to rent and now says I have budgeted $2500.
How do I get this $500 planned expense to show as an allocated amount to the rent line on the budgets? I like to always understand my EXACT balance and keep track of the pending items instead of retroactively accounting for things after the dollar is spent.
Am I doing something wrong or is YNAB not built how I am thinking it will work?
Here’s how it should work.
- First add your budget accounts to the budget. These funds should be available in To be Budgeted. $2000 in your example.
- Now budget $500 to Rent and budget the remaining $1500 to other categories until TBB is 0.
- Create your pending $500 rent payment like you did. You can make this repeating for every month if you’d like.
Check this out to help you get started correctly: