Saving for a goal and then spending
Hi! I'm just getting starting with YNAB and really loving it so far. Everything seems to be "clicking" with me which hasn't happened when I've tried budgeting before. So thank you for that!
One question so far - I have a category for "Gifts for Birthdays" where I'm putting say $50.00/month to use for presents/cards for family and friends throughout the year. I have a friend's bday coming up and I'm getting her a card and a little gift. Does the 'spending money' transaction come out of that saving category? Or do I create a different category for the actual gifts and move the budgeted amount over to that?
And does the same strategy apply to similar 'savings to eventually spend' categories? Like my Car Insurance that I'm saving up for when it's due next year? Or vacations, etc?
It comes out of that category! Think of it like an envelope that you are putting money into and then spending money out of. You got it!
Also, when you feel like you have that down, take a look at the YNAB videos around setting different types of goals. This can help you down the line learn to budget inside of those categories. There is one type of goal for if you want to contribute $50 a month to that categorey. There is a different type of goal if you want that category to always sit at $150 or above. After mastering level one of YNAB we started diving into the goals for more awesomeness!