How to transfer money into savings.
Hi! Just getting started with YNAB and having trouble getting my head around how savings accounts work. For the example I have added two accounts, Halifax checking account and ISA savings account.
So I have £3000 monthly income into checking account. I have set a budget of £50 to go into the ISA once a month. How do I do this?
I can transfer the money from Halifax to the ISA, but that does not let me select a category, so it will not come out of my budget. I can instead Outflow the amount from the halifax, and then inflow it into the ISA. But then the £50 in the ISA is waiting to be budgeted. I do not necessarily want to budget it, so do i just put the £50 in a saving for house budget item or something similar? Or since my savings account is not part of my budget should it just not be visible on the budget at all?
Typing it out makes me think the savings account should not be on YNAB at all since its not part of my budget ? But I'd prefer savings accounts to be visible so I can see my savings grow. Appreciate any help, thank you,
Yes, that's about right. The idea is to make a plan for all your money, including savings goals. The budget is that plan. Categories define an intended purpose for that amount of money.
Totally separate from that is where you keep your money. If I intend to spend $5 on a burger, I can hold that in my back pocket, front pocket, or even in my left hand. My hand is super accessible, but not very secure. My front pocket is far more secure. Regardless of whether I put it, I know there is $5 for a burger. I pick a location based on other considerations than purpose.
Your savings account simply pays more interest. Just putting it in a category means it's saved. Read this: