Saving for trips in a linked savings account
I have only been using YNAB for about 3 months now and I love it! I do have a question, though.
I have several upcoming trips/events that I need to save up for. Currently, I have each one set up as a category in my budget. Each one has a target with how much is needed by what date and how much I need to save in each category every month so that I have enough money for when the time comes.
So that my actual checking account in my bank does not show this money that I am assigning to each of these categories (I don't want it to "look" like this money is "available" in my checking account...for others in the house...😜), I physically transfer the money from my checking to my savings account.
First: is this the best way to do this??? On the left side of my screen, both my checking and savings accounts are listed under the "budget" tab. Should my savings be listed under "tracking" instead?
Second: even though I am completely aware that I should NOT be transferring back to my checking, there have been times that we got into a bind for whatever reason and I had to. However, when I do this, even though it shows up as a transfer in each account, the money doesn't change in my budget (I know it's technically already assigned in my budget, so I realize it won't show up as "ready to be assigned.") Do I need to subtract that transfer from one of those categories??? Or what is the best way to go about saving for certain things in the future?
I hope this makes sense and I'm so sorry if this has already been asked and answered. I couldn't find it anywhere.
Thank you so much for your help!
You're doing everything right. Keep both checking and savings in your budget like you have now. Let your categories do their jobs. Transferring between account either way makes no difference to your budget. That's why these transfers don't have a category. It's like moving $5 from your back pocket to your front pocket. Either way, you still have $5.
Checking accounts and savings accounts are just locations. Your budget funds come from all budget sources. Your categories contain the purpose of all funds. Savings might just make you a little interest and/or in your case, keep the funds out of sight from those looking at checking funds.