Someone take me under your wing !!!!!

Hi
I must have did about 2,345,246,384 fresh starts and still not comfortable with nYNAB.  I would like to try again but do it in a methodical way where I can understand why I did what I did.

My banking is normal which is to say that there are no investment accounts, no retirement bonds. I do have a couple credit cards and the strange thing is, I am quite comfortable understanding how the Credit Cards work. 

What I would like to do, is start from the beginning with your guidance.

Here is my situation

Credit Union Checking Account        $3,029.26
Credit Union Property Tax Account   $1,299.74
Credit Union Plan 24 Account           $1,100.74

Every Friday $70.00 is automatically transferred from the Credit Union Checking Account to the Credit Union Property Tax Account.
Every time I use my Debit Card, $2.00 is automatically transferred from the Credit Union Checking Account to the Credit Union Plan 24 Account.

So what I want to do first , is to create three Budgets Accounts:
"Checking Account" with a balance of $3,029.26
"Property Tax Account" with a balance of $1,299.74
"Plan 24 Account" with a balance of $1,100.74

Correct ??????????

The next transaction would be this Friday when I need to record the weekly transfer of $70.00 from Checking to Property Tax.  How do I record that so that all the Balances adjust ?

Thanks to all 
Ron

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  • Yes, the first step is to set up the accounts. All should be on budget, and that means it will total up and all be available in the To Be Budgeted.

    Then, the second step is to setup the categories. One is obviously going to be Property Tax, and you'd want to budget $1,299.74 into it. Then what is the Plan 24 account savings for? Set up categories for the $1,100.74 to be divided into (emergency fund? car repairs/replace? medical deductible? vacation?)

    Then budget the rest of your money into your categories including ongoing and annual expenses like insurance, registration, etc.

    Then you can setup a recurring transaction in your Checking account to transfer $70 on every Friday into your Property tax account. Additionally, you will need to budget that $70 into the Property Tax category. So maybe $280 of the $3,029.26 goes into that for February. Or maybe you get paid every Friday and the $70 comes out of each paycheck. Whatever works for your finances.

    Reply Like 1
      • jenmas
      • jenmas
      • 11 days ago
      • 2
      • Reported - view

      Please understand that all of these transfers between on budget accounts will have absolutely zero impact on your budget screen and the amount allocated to your various categories. As far as YNAB is concerned, all you are doing with these transfers is to move money from your left pocket to your right pocket. 

      In addition to the transfers, you will have to move money around your categories. If you buy groceries with your debit card and $2 is moved to your savings account, if you want that reflected on the budget page you will have to reduce one of your categories by $2 so that you can add $2 to your savings category. 

      Reply Like 2
      • mamster
      • mamster
      • 11 days ago
      • 4
      • Reported - view

      jenmas To put it more bluntly: if you want to use YNAB, turn off the automatic $2 transfer. It will drive you nuts, and YNAB will help you save a lot more than $2 per swipe.

      Reply Like 4
  • Hi. I'm sorry to hear you are having so many troubles using YNAB. I feel the thread is slightly diverging from your immediate concerns. Although I agree with the previous posters on the automatic $2 transfers and the need to budget first. 

    So you have entered your accounts and have checked the starting balance is the cleared balance.

    Your Property Tax

    For the recurring transaction, go to your checking account screen. Click "Add Transaction". Choose the date (08/01/2019) and make it recurring weekly (under the calendar). For Payee, choose "To/From: Property Tax Account". Then no category. Then put $70 in outflow. Save. Now, the transfer should appear in grey at the top of the transaction list in your Checking account. And at the top of your Property Tax account. Both will enter your transaction list on the 8th and you will then have to approve it. Then clear the transaction once it has cleared at your bank.

     

    For the budget side of things. As the others have said, the transfers have no impact on your budget as those 2 accounts are on budget. On the budget screen, create a Property Tax category. Then it depends on what you know. Do you know how much Tax you will need to pay and when? If so, enter a goal for the month you need to pay your tax to the total amount you will need to pay. Then YNAB will tell you how much you need to put in that category per month. It doesn't matter if that's equal to the $70 * number of weeks in the month. All that matters is you will have enough set aside to pay for your taxes when the time comes.

    If you don't need how much you will need, then count the number of weeks until you need to pay your taxes (I assume you at least know when you need to pay). Multiply by 70 and divide by the number of months. That's the number you need to budget to your category every month. You can write this number in notes, or the category name or create a Monthly Funding Goal.

    Reply Like 1
  • Thanks for all the reply's but I am left a bit disappointed in all "Zero" based finance software.  It should not be so difficult to do what I would like to do.

    It's not a bad thing to have $2.00 taken automatically out of your checking account and put into a savings account every time I use a debit card.    In my head I am thinking,  I need to add the Savings Account, which I already have at my bank, create a category so I can budget for this and now every time my bank takes the $2.00, all I need to do is to create a transfer.  But "NO",  because while the balance is properly adjusted but the $2.00 is not adjusted in the Category.   It should be easier to do this !

    It's not a bad thing to have $70.00 transferred automatically to a tax account.  In my head I am thinking,  I need to add the Property Tax Account, which I already have at my bank, create a category so I can budget for this and now every time my bank takes the $70.00, all I need to do is to create a transfer.  But "NO",  because while the balance is properly adjusted but the $70.00 is not adjusted in the Category.   It should be easier to do this !

    I really do like NYAB, I like everything about it except the two exceptions above !  Am I asking to much? Would it be difficult to make the process in a way where it would be logical to use?

    Reply Like
      • jenmas
      • jenmas
      • 10 days ago
      • 1
      • Reported - view

      keyboard I don't think it is a bad thing to move money to your savings account, it's just that $2 at a time is not very efficient. I like having lots of money in my savings account. Therefore any time my checking account gets higher than $X, I move the excess to my savings account (so basically on the 7th and 22nd of the month when I get paid). And there is absolutely no need to do a single thing on the budget page because location of my money has not a single thing to do with the purpose of my money as explained in this article.

      I have a Loss of Income category and the available amount in that category could cover more than 6 months of expenses if needed. I literally cannot tell you what bank account that money is in, because it does not matter. I would say that you should combine your savings account and property tax account if the only reason you have separate accounts is to keep your property tax money "protected" from your "savings" money protected from your "spending" money. But I'm saying that as someone who has 3 checking accounts and 4 savings accounts scattered across 5 banks. But that's because I don't like to keep all my eggs in one basket for security reasons. My use of foreign ATMs in sketchy places puts me at higher risk of card skimmers so this way I can't be completely cleaned out in one hack.

      If you spend according to your category balances, you will never accidentally spend the money you were setting aside for your property taxes or emergency fund.

      Reply Like 1
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 10 days ago
      • Reported - view

      keyboard Accounts are just a location. Your categories are your spending and saving plan. Moving money between accounts doesn't change the purpose of the money. You decide the purpose of the money when you decide which category to put it in This happens when you receive the money, not when it moves between accounts.

      Read this until it sinks in...

      The Relationship Between Your Budget & Your Accounts: It’s Complicated

      It actually creates more freedom once you realize this. The location of your money then becomes purely a decision of convenience of accessibility vs. extra interest and you can move money around at will.

      Reply Like
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 10 days ago
      • 2
      • Reported - view

      keyboard The "It should be easier to do this" part of YNAB is to completely drop the idea of location determining the purpose of your money. Once you do that, it's very easy.

      1. Budget money to categories according to your own priorities

      2. Spend money from your categories

      3. When you get new income, repeat steps 1 and 2.

      If you want to save more money, just budget more money to savings categories. This is not dependent on micro-transfers.

      Reply Like 2
      • mamster
      • mamster
      • 10 days ago
      • 3
      • Reported - view

      keyboard I want to emphasize that many, many YNAB users (including me) initially chafe against this idea that the location of a dollar shouldn't determine its purpose. We've been using bank accounts to segregate our money by purpose for so long, it feels natural.

      At some point, however, what you realize is: "Wait a minute. When I distribute my money to different accounts, I'm giving my dollars jobs. YNAB knows that I want to do that, and it supports me by giving me a way to do it that's easier and more granular than my old system, and the result is that I save more money and am more in control of my spending." Yes, YNAB takes away your old approach, but it replaces it with one that does everything you used to do, better. It's multiple accounts on steroids (minus the side effects).

      Reply Like 3
    • Ben K.
    • links to ynab book topics covered online: https://support.youneedabudget.com/r/q5w48j
    • Khaki_Storm.1
    • 10 days ago
    • Reported - view

    I can't think of a way to do the auto 2.00. That interesting idea, it's like a lose change jar at home when you empty you pockets every day. On the tax payments, here's what I have: a savings account called mortgage, I get paid every 2 weeks by direct deposit, half the mortgage payment amt is deposited into the mort savings by my employer, the my bank does an auto draft out of that account to pay the mortgage. You could also argue I don't need you reflect any of that in YNAB, but I want to. I have recurring income into the saving acct., but balance still tbb, ho to budget click on mortgage category and click underfunded quick budget, and a recurring payment out. Also, I do not to an import from the bank. 

    Reply Like
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 10 days ago
      • 3
      • Reported - view

      Ben K. There's no such thing as loose change when you are using YNAB. All the money in all your budget accounts will already be accounted for in your budget. It's more deliberate, so more effective. if you want to save more, you budget more to savings categories.

      Reply Like 3
      • Ben K.
      • links to ynab book topics covered online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 10 days ago
      • 1
      • Reported - view

      nolesrule I understand. I'm about to change my tagline to concrete + linear thinker. I have to make the idea a concrete example and then I have to step thru it in a start to finish process 1,2,3,4,5. That's just how some of us are. My wife is the exact opposite, which is abstract + non-linear thinker. She wants to know the high level picture and it could be explained in steps 5,3,2,4,1.  You should be around when either of us are trying to explain something to the other one. The two other choices are concrete + non-linear and abstract + linear. These aren't personality types, which is another dimension or even learning types, it's how you think/process information.

      Reply Like 1
  • Thanks to all !!!  It is hard for an old fart like me to change habits but I will honestly give it a try. 

    I have created another Budget with only one bank account. And if I read all your advice correctly,  instead of having a "Property Tax Account",  I will create a category called Property Tax Account and budget accordingly.....  and do the same for the Plan 24 Account.

    Is this correct ?

    Reply Like 1
      • mamster
      • mamster
      • 10 days ago
      • Reported - view

      keyboard Yes, but you don't have to put the word "Account" in the category. 😁

      Reply Like
      • mamster
      • mamster
      • 10 days ago
      • 1
      • Reported - view

      keyboard Also, unless you've actually consolidated all of your money into a single account, you still need to add all of your deposit accounts to YNAB. It'll then pool all of that money and you allocate it to your categories according to your priorities. It's a good idea to consolidate accounts—perhaps down to one checking and one savings account (to earn extra interest)—but it's not necessary to use YNAB, and you do need to have your YNAB setup reflect your current reality.

      Reply Like 1
      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 10 days ago
      • 3
      • Reported - view

      keyboard 

      I did a test-drive experiment too before abandoning my old budget-by-account ways. I had a lot of accounts.  I closed down six in the first month.  

      August, 2014 excerpt from my Journal on the classic forum:

      On Friday I combined all my rainy day and emergency savings into one big e-savings account (the one that actually gets a monthly interest deposit). And doing it did not keep me up pacing the floor. Combining my Christmas savings with my medical savings et cetera did not cause the sky to fall, at least not over my little part of the planet. I'm sorry if it's raining brimstone where you live.

      Reply Like 3
      • keyboard
      • keyboard
      • 10 days ago
      • Reported - view

      mamster 

      Do you recommend creating an off budget account for Property Tax and Plan 24 ? 

      Reply Like
      • mamster
      • mamster
      • 10 days ago
      • Reported - view

      keyboard Definitely not. Keep your savings on budget.

      Reply Like
  • Okay, so if you have these automatic transfers already scheduled and you're going to keep doing them, then when you approve the scheduled transaction, go to the budget and increment your Property Tax category by $70 or your Plan 24 category by $2. It'll be a hell of a lot of extra work and waste of time and you'll get sick of doing it, cancel all the extraneous transfers and just add $280 every four weeks to the Property Tax category without caring where the money is stored. The $2 per debit card transactions are just useless noise making it harder for you to reconcile your accounts and you're going to stop doing that and just categorize money from your dragon hoard to the various categories you need to guide your spending.

    That's my prediction.

    Reply Like 1
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