Savings & Ynab
Hi Ynab community!
I'm a relatively new Ynab user (3 months) and have been struggling with how to deal with pre-existing savings.
Let's say I have $100,000 in existing savings that I have yet to add into ynab, what would be the best way to add this into my budget and continue to add to?
I assume if I add it as a new account, it will simply be added to my "to be budgeted" amount. What would be the next step though?
Apologies if this is a little vague, just not super sure how to phrase the issue.
If anyone can assist, it would be greatly appreciated, or if you need any further info, please let me know.
What are your intentions for this money? Make categories and allocate various purposes. Income replacement? House down payment? Whatever.
I also suggest that you structure your budget so you can push all your income into next month's area. YNAB becomes much simpler when you can budget on a calendar basis.
A bit of context, I'm a freelance graphic designer and the money mentioned earlier is realistically money that currently sits in the business account at the moment. This money is yet to be taxed (will be done at the end of the financial year).
This money is where I draw my monthly income from (~$10,000 at the start of each month), which then funds the budget for the month.
Due to this, I have been reluctant to include it in my budget. Do you think it is just easier to keep it separate?
Best practice is to also set up an entirely separate budget for the 100K as well. You’llprobably still need dedicated software for invoicing, etc. but YNAB can do at least some of the management of business capital, such as ensuring you’ve set aside enough for taxes. The 10K owners’ draw will be a straight outflow from the business budget and a straight inflow to the personal budget, as though it is a regular transaction in both.