Someone take me under your wing !!!!!
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
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
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.
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.
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?
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.
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 ?
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.