Negative / overspending

I'm not sure what to do about overspending in budget categories and moving forward each month.   One way that happens is from medical expenses that will be reimbursed, but not always in the same month.  In Classic I would let that balance just keep moving forward and I just realized that doesn't happen here.

Then also, unfortunately a health issue has meant that my family's income took a dive for the past year and we've needed to continue feeding ourselves, sheltering ourselves, etc... though we've cut down what costs we can, used up our savings, gotten parents help, and also taken on some debt.  

When our "To be budgeted" is a negative number at the end of the month, in Classic it would then deduct that from the next month's available to spend... but I don't think that's happening here. 

The "Overspent in Month" is always $0? Why?

If I click the negative balance of "To be budgeted" I see an option to cover this with any budget category... not sure how to use this?

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    • casner
    • Now retired, and figuring out transitions
    • casner
    • 1 mth ago
    • Reported - view

    If you use Rule 3, you will keep from having negative categories at the end of the month. It does force you to think about priorities, though.

    With the web version of YNAB, a negative category balance at the end of the month is deducted from next month's To be budgeted, thus forcing you to make the priority choices next month.

    • casner We've thought about priorities and we still need food and a roof, etc.  

      I don't know what I'm not getting on the second point - I don't at all see the negative balances being moved forward.  They just disappear in the next month. 

  • Assuming medical reimbursements are on a CC and you are reimbursed within 30 days if the expense:

    1. Categorize both outflows and inflows (reimbursements) to the same category. The category will turn yellow/overspent.

    2. If that category ever turns green, move those funds to the relevant CC Payment category.

    • dakinemaui Sometimes the repayments will be in the next month.  What should I do then?  What you said is what I currently do. 

    • Violet Device The Green Rule covers all cases: this month, next month, or even next month after additional expenses next month. 

  • Overspent in Month is only for cash overspending (red/negative categories). Yellow overspending is a warning of a CC debt increase with no plan to pay it off. Additionally, YNAB will convert cash overspending to credit overspending within a given category whenever possible.

    Edit: Overspent in Month also covers a negative TBB. Also note that header is relative to the previous month.

    • dakinemaui Ok, most of our transactions go through credit cards and then we pay them in full.  I don't understand what you've written though.  

    • Violet Device I was explaining why you don't have overspending taken out of next months TBB. The Overspent In Month does not apply to credit (yellow) overspending.

  • One way to do this is to modify the transaction date of you medical bill  to  the date you will receive the reimbursement check . The transaction will stay grayed and will activate when you get the money.

    The other way, create an Emergency Fund of$ 2000.00 that will absorb the expense  and when you get reinbust you put it back.

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