Issues with Savings Account Consistently Matching Savings Category
Greetings fellow YNABers!
I've noticed it to be a HUGE issue for me to keep my savings category in sync with my "Savings Account". I have an automatic transfer for a given dollar amount to be transferred to it each paycheck from my main account. YNAB reads this correctly as a transfer between those accounts but of course that then throws off my savings category since I can't categorize transfers between accounts.
How do you manage your savings account/categories? Do you experience similar issues? Am I failing to understand how savings accounts work within YNAB so it can gain (what little) interest the bank provides?
Should I just hide the account since it has my starting balance still there? Should I delete the balance and category entirely?
The first thing to remember is that in YNAB, money is saved by budgeting it to a category and then not spending from the category.
There is no reason for an account to match a category, because accounts don't define the purpose of your money. You'll find YNAB is a lot easier when you just stop trying to keep them in sync, but rather keep what you need in checking based on your upcoming cashflow needs and put the rest in savings.
Thanks for the reply and link. I'll take a look at it in a minute. The savings account and category do have the purpose of being emergency cash savings, I just didn't specify it since I didn't think the type of savings was relevant to the issue.
I'm not sure I understand your last sentence in your first post. To me a separate account, that is a savings account as defined by the bank, is indeed a label/category since it gives it a purpose in my head. I do save for other items such as items for baby #2, a new laptop, flight lessons, etc via the checking account but those items are spent rather quickly compared to the emergency fund which does at least have a slight amount of interest gained.
Guess I should have read through the article a bit to understand a bit about the mentality with transfers. If I'm understanding this correctly, since I prefer the money in a "bank savings account", I can simply delete the category of Emergency Savings because the money doesn't truly touch my budget for spending. Upon needing it for major car repairs, or some major randomly life event, I can transfer it to the checking account then categorize it as needed from there.
Am I thinking a bit more clearly about this now?