Additional savings account

I have one savings account which I have separated in my budget to actual savings then savings for things such as car tax, car ins, holiday, birthdays etc.  What I'm wondering is would it be sensible to open another savings account purely for my savings and have the existing account for the savings which will be spent.

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  • Read this article: The Relationship Between Your Budget & Your Accounts: It's Complicated. In YNAB, money is "saved" as soon as you assign it to a category and then don't spend it. The account is not relevant. It's like, if you have a $20 bill in your right pocket and then move it to your left pocket; you still have a $20.

    I'm not saying don't have a savings account. I have multiple savings accounts but that's because I use them for sign up bonuses or high interest rates and to spread my money around so it's not all in one place as a general security measure. It has nothing to do with the "purpose" of my money though. None of my account balances match any of my category balances (or any grouping of categories). I determined that I need on average $X in my checking account to cover all payments in a month (mortgage, HOA, credit card bills, utilities, etc) and keep a certain amount more than $X in the account. Everything else gets sent off to one of my savings accounts to earn interest.

    Reply Like 4
    • MsTJ
    • Gray_Nomad_f6eeb59e1a1c
    • 1 yr ago
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    That is a personal choice.  Personally, I like having as few accounts as possible and always look toward utilizing an existing account rather than opening a new one.  

    The money I have on budget for savings, that will be spent in the near future, I simply keep in my checking account since most transactions come out of there.  It isn't worth it to me to keep moving money back and forth between checking and saving.  

    For longer term savings, like my savings for a replacement vehicle, which I don't see needing in the next year or two, I might put into a separate savings account for a few more interest dollars.  But only after I have enough in my checking to cover anything that might come up in the near future.  

    Reply Like 2
    • HappyDance
    • YNABing consistently since 2014
    • HappyDance
    • 1 yr ago
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    And then there's yet another option:

    I keep my chequing account over-funded by at least $1,000 more than I anticipate actually spending. On the first of every month my chequing account has a balance equal to:  my average/typical monthly spend + $1,000 + any large anticipated/scheduled expenditures I foresee in the next six weeks.  If I don't have that amount in chequing, I transfer what I need out of savings to get that balance. Anything above that amount on day # 1 of a new month gets moved to a savings account for the better interest it will pay.

    I chase promotional interest offers, so I have more than one savings account. I move qualifying lumps sums (unrelated to any category or combination of categories) around to get the premium interest rate offered by whatever bank is offering the best.  I keep my short-term savings (funds that will be spent within the calendar year) and my emergency funds (money I hope to never spend) liquid and unrestricted and not invested.

    Mid-term savings: funds I'm saving for a special trip or new furniture or a replacement car, I've chosen to not invest in riskier things, but I don't mind tying them up in longer-term savings vehicles that give me a bit more interest. I've moved my car savings into GICs (that's Canadian for CDs). I budget monthly and then buy a new GIC once a year. Although the GICs are purchased in different years, they all have the same maturity date, so I will have a nice lump sum to go car shopping in 2022.

    Reply Like 2
  • @jenmas  gave my usual answer to this sort of question in my absence.

    Reply Like 2
  • Thankyou all. Will leave it as it is, guess I was thinking seeing another account purely for saving would look nice :)

    Reply Like 1
      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 1 yr ago
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      Violet Carpenter 

      I hear you.  Even better than more accounts is nice plump categories bulging with funds.  

      Reply Like 5
  • Violet Carpenter 

    I agree with others that this is personal preference.  Personally, I have a "Long Term Savings Account" and the balance in that account matches the balance in the budget category.  I also have a "Monthly Savings Account." 

    I call this one "monthly," because it holds money that I allocate to specific categories every month for different things (i.e. auto expenses). I budget money to this and other irregular expense categories in my budget every month.  The "Monthly Savings Account" also holds money I make this month, but will budget next month (i.e. my buffer). 

    If I have to spend money on auto expenses it hits this category in my budget, and  I transfer an amount from the monthly savings account into my transaction (checking) account to cover it.  I also transfer my buffer to checking at the beginning of the month, so I can budget for the month.

    This way things like my emergency fund don't get touched because it is sitting in my long term savings account. 

    This is the way I do it, but as I said, whatever works for you.

    Reply Like 1
  • JollyBugeteer  this is exactly what I was meaning. Thank you 

    Reply Like 1
  • This is just extra unnecessary work. Just put what you don't need in your primary account into the savings account. The only reason to have multiple savings accounts isif you have a better use for some of the money. If it's all at the same bank earning the same amount of interest, it's just extra work for no reason.

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    • nolesrule It depends on the person.  Some of us like to keep the money in separate buckets.  Plus, I get higher interest on those savings accounts.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 yr ago
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      JollyBugeteer YNAB already keeps the money in separate buckets for you. You can then just put whatever you don't need in checking in your higher interest accounts.

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    • nolesrule Agree, but as I said, some people LIKE separate accounts.  If someone wants to have some separate accounts, they should.  It's up to them.

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      • WordTenor
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      • WordTenor
      • 1 yr ago
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      JollyBugeteer On the old forum we had a popular analogy about bicycles that went like this. A bunch of us have bicycles that we just hop on and pedal away, using the design of the bicycle to lower the kinetic energy required to travel and to travel faster. Other people own bicycles,  but for some reason are walking beside them and pushing them. As they watch the rest of us zoom past as they huff and puff (because pushing a bicycle while you walk is actually more work than not having a bicycle at all), they insist that it’s unkind to be told they should get on the bicycle and pedal instead of pushing it. After all, they used to walk everywhere, and so now that they have a bicycle, this is the obvious improvement the bicycle has made. They have a bicycle and they should be allowed to use the bicycle however they want.

      We can’t force you to ride the bicycle. But it is a heck of a lot easier than pushing it. 

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      • JoeDid
      • Remember: It is To Laugh
      • Purple_rain
      • 1 yr ago
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      WordTenor I guess I have to ask: Why do you care if some of us, from the old school where savings accounts were represented by passbooks that you walked to the bank weekly to deposit your $1 allowance in, rejoicing in the chunk-chunk-chunk of the register that recorded the deposit, and then added your 3 cents interest, prefer to keep separate savings accounts? I have a bicycle (strange and silly analogy) that I ride when I want. Other times I prefer walking to the bank. With or without my bicycle.

      Reply Like 2
    • WordTenor I remember this analogy from the old forums. The only thing is that we are not talking about bicycles.  A speed analogy is not helpful.  

      YNAB has direct import.  Instead of entering our transactions manually through the mobile app, I could  just use direct import, which is probably faster. I’m not interested in riding the direct import bicycle because I’d feel like I’m not actively managing my budget. Speed be damned.

      People should have any accounts they want. Speed be damned.

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      • WordTenor
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      • WordTenor
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      JollyBugeteer  JoeDid you both are missing the point. This is about trying to manage a separate savings account at YNAB and match it to categories.  Not about having a savings account (I have three) and not at all about whether not you use direct import. 

       And the reason I care, is two fold. One, it's better to use YNAB the way YNAB is meant to be used. By "better" I mean it is easier to use, and also that you reap financial rewards from not tying accounts to categories. So...I'm suggesting people ride the bike because they will be better off if they do. I'm thoughtful that way. And two, when people don't use YNAB fully, they wind up telling other new users, who might actually prefer to use YNAB fully, that they, too, should hobble its abilities by clinging to the old "accounts determine the purpose" mentality and not fully embracing categories.  This isn't a "do what you want" scenario, where both options are neutral. One way actually does make using YNAB more complicated and leads to less success. You can do it anyway, of course, but it's certainly somewhat cruel not to point out to a new user what the pros and cons are. 

      If you prefer something more concrete rather than an analogy, @HappyDance explained in the other thread about this why separate savings and matching accounts to categories eventually trips people up and makes using YNAB unpleasant. 

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    • WordTenor I hear you and I understand, but my process is very simple., and I’ve been using it for almost 4 years.

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    • WordTenor Actually, I've used this system long before I discovered YNAB.

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      • WordTenor
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      • WordTenor
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      JollyBudgeteer Yeah, I used to do that, too. I am awesome at budgeting by account. But thankfully, I listened, eventually, to more experienced YNAB users who encouraged me to get away from the idea of a dedicated savings account matched to some idea of its putpose. Doing so  has turbocharged my finances. 

      You don’t have to experience that, though. It’s not required—as you see, you can tediously move money back and forth between your accounts. YNAB will still track it, and since you won’t ever have to worry about somehow being talked into trying it the other way, you won’t ever know what you’re missing, so I imagine it will feel nice to do. 

      Reply Like 1
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 yr ago
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      If you budget by account, don't waste your money paying for YNAB.

      I once calculated out that the ability to cashflow optimize my checking account earned me enough in additional interest to pay for the YNAB subscription (of course, I've chosen to keep that money and stick with YNAB4 😉 ). Interest rates have only increased since then.

      I keep what I need in checking, put the rest in savings accounts, CDs and I Bonds, and move money between financial institutions to take advantage of better rates as they occur.

      Heck, just the bonus from the Ally promotion  I expect to get in February would pay for about 10 years of YNAB subscriptions, and I couldn't have sent all that money to Ally if I was budgeting by account.

      Cashflow management for the win.

      Reply Like 6
    • ,WordTenor I actually don't budget by account, but I get your point.

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    • HappyDance
    • YNABing consistently since 2014
    • HappyDance
    • 1 yr ago
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    To be fair, not everyone is ready to let go of budgeting by account the moment they find YNAB.  For some (like me)  it takes a while for an awareness of a different way to sink in and to gain a level of confidence with the software as well.  My account structure had become a tangled web of crazy, and I really, really needed to let go of budgeting by account.  My family even teased me and made fun of how quirky I was with money. Worse, it was making me miserable and anxious.  I began letting go of budgeting by account and matching categories to specific accounts about 5 weeks into using YNAB.

    The Epiphany:  There was a week early in my use of YNAB where I logged into numerous accounts at 2 a.m. in order to transfer less than a dollar from each, all in an attempt to keep account balances in line with category balances, and at the time e-transfers cost me in service fees if they exceeded a certain frequency.  And then I tweaked my budget a bit, moved funds around, and found myself staring in horror at the category and account balances that now didn't match, again.  I realized I couldn't keep logging into accounts and moving less than a dollar, and I remembered the forum advice. I made the deliberate decision to consolidate savings accounts and just let go.

    I realized that I could safely rely on YNAB to separate the money by purpose while letting it sit in whatever jumbled combinations at the bank, in cash, in gift cards, and it was such a relief to let go of budgeting by account.

    I did initially simplify by closing accounts.  In my current budget (four years later) I actually have more accounts right now  (a temporary situation) than when I started using YNAB.  Since building up some liquidity -- YNAB is so efficient at increasing net worth -- I've made a game out of chasing promotional interest and bonuses on new savings accounts.  I easily move lump sums around between banks in order to meet the minimum required to qualify for a promotional interest rate, or I move the bulk of my money to the account with the (temporary) highest interest rate.  It's become a game that makes money and doesn't limit me in my behaviour.

    Reply Like 2
      • WordTenor
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      • WordTenor
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      HappyDance I'm certainly not suggesting that everyone drop it the minute they start using YNAB. Just pointing out that "No. I always did it this way, and by golly, I will continue!" instead of going, "Hmm, you might have a point" is a surefire way to not get the most out of YNAB. 

      I could rewrite your exact post. I had one account when I started YNAB which instead of just being a checking account, was two checking accounts and a savings account--you opened all three when you opened that "account." (PNC's Virtual Wallet.) I am a CHAMPION at budgeting by account. Fortunately, some YNABers had exactly this same conversation with me, and I had exactly the same "No. How dare you. I have my way and it works!" response. And though I didn't have fees attached, had the same mess of constantly dumping money back and forth between the two checking accounts because one was supposed to be my spending and one was rule 2, and the savings account was for the money I was accumulating for the buffer, etc. And one day, it clicked. And I opened a new checking account at my brokerage firm, and closed the crazy three-account mess. 

      It truly is better on the other side. But some folks it takes a long time of banging their head up against the wall to see that. I took a moderate amount of banging. I'd hope to save others the trouble of doing as much banging as I did, but when it comes down to it, when people are getting accusative and snippy, I confess I get accusative and snippy right back, because I know from having experienced both sides that this way is *way* better.  

      But oh well. I like schadenfreude, so I'll sit here and wait! 😂

      Reply Like 2
      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 1 yr ago
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      WordTenor 

      Agreed.  I think you would make an amiable an interesting dinner guest.

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    • JoeDid
    • Remember: It is To Laugh
    • Purple_rain
    • 1 yr ago
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    Well, here I go...

    @Wordsmith wrote:

    JoeDid you ... are missing the point. This is about trying to manage a separate savings account at YNAB and match it to categories.

    This was not the OP's point initially, who didn't mention matching savings account to categories until later on in the thread. I don't do that anyway: I hardly ever look at those specific categories now that they are all established and transfers to/from them "automatic" except for when I see the funds automatically allocated for an upcoming expense in a new month.

    If you prefer something more concrete rather than an analogy, @HappyDance explained in the other thread about this why separate savings and matching accounts to categories eventually trips people up and makes using YNAB unpleasant.

    Again, you're talking about matching categories. I saw @HappyDance 's post and I have always respected her opinions. What I can't do, however, is keep $1000 extra in my checking account as a buffer there. I don't have that luxury. Also, if I implied I that using YNAB is unpleasant, I didn't mean to. I love using it, and the way I use it works for me.

    you can tediously move money back and forth between your accounts.

    This is another assumption on your part. There's nothing tedious about it for me. I have a Future Expense savings account that holds funds for long-term expenses, something that YNAB taught me to think about, and which I implemented a year ago. (The first item I set up was for YNAB renewal in December.) It's an interest-bearing account, whereas my checking account isn't. Transfers from my checking account to the Future account are done monthly and are automatic, both in YNAB as scheduled transfers and at my bank.

    Likewise, the five months a year when I move funds back to the checking account to cover the expenses: they're scheduled transactions in YNAB and automatic transfers at my bank. I do nothing but watch them happen and there's nothing tedious about that.

    In another post @HappyDance wrote she has "made a game out of chasing promotional interest and bonuses on new savings accounts. I can easily move lump sums of money around between banks..." for various reasons that are beneficial to her, and "It's become a game..." Why is that a game, and what I do tedious?

    I'm not sure why I'm even bothering to defend my use of YNAB to others whose financial situation is probably very different than mine. My method works fine for me, is not unpleasant, and is far from tedious, but is fun to watch happen.

    I'm not someone who is averse to learning new ways to do things: the fact that I've shelled out $75+ for YNAB itself is an example of that. In the year I've worked with it, I've gotten to the point where I'm basically bored: there's so little for me to do, other than approve transactions. I wish there were more.

    I still don't get the bicycle analogy, (apparently I have a scooter) but thanks for trying.

    Reply Like 1
      • WordTenor
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      • WordTenor
      • 1 yr ago
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      JoeDid The OP is talking about matching accounts to categories. Jollybudgeteer is taking about matching accounts to categories. It is you who missed what the conversation is about, I’m afraid. (And it sounds like you are still also matching accounts to categories, but that is a bit unclear from your post.) 

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      • JoeDid
      • Remember: It is To Laugh
      • Purple_rain
      • 1 yr ago
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      WordTenor Where in this Original Post does the word "categories" appear?

      I have one savings account which I have separated in my budget to actual savings then savings for things such as car tax, car ins, holiday, birthdays etc.  What I'm wondering is would it be sensible to open another savings account purely for my savings and have the existing account for the savings which will be spent.

      I see you edited your original reply to my last post (or deleted and re-posted, probably) and I'm glad you're no longer afraid.

      No, I am not matching accounts to categories. I'm happy with the way my budget works in YNAB, and I'm glad you like your method better.

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      • WordTenor
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      JoeDid I decided to edit because I thought pointing out that you are right, you clearly don’t understand the bicycle analogy, probably because you don’t understand how not to match your accounts to categories was a little ruder than I wanted to be. So I took that part out in the interest of civility. But since you’ve called me on the edit, there you are. 

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      • WordTenor
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      JoeDid PS despite the sniping (which I tend to do when someone snipes at me) I really am happy to help you learn how to use YNAB the way the rest of folks here are talking about. The one where you make in interest enough to make YNAB free. But you seem convinced it’s your way only (again, an atttidue I’m familiar with because that’s totally how I did it at first) and you don’t seem to want that info, so I’m not trying to give it the way I might to someone who is genuinely looking for help. But I’d be happy to, if you are actually interested in more than a debate of “I like my system, so it doesn’t matter if there’s a better way.”

      I like helping people use this software and start killing it beyond their wildest imagination.

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      • JoeDid
      • Remember: It is To Laugh
      • Purple_rain
      • 1 yr ago
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      WordTenor If I was sniping, I apologize. I guess I felt you were attacking me as being one of those stubborn newbies who don't want to learn your way of doing things, which you believe is the best.

      We can leave this here: I seem to keep failing to express myself the way I want, but I will repeat one more time: I am not matching my Future account balance to my categories. I am not doing that.

      I tried that early on and found it was a hopeless effort. There's no correlation between the two.

      Again, thanks for trying to "convert" me.

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      • WordTenor
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      • WordTenor
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      JoeDid I think you're saying exactly what you mean to say; I just suspect you don't recognize that it belies that you could think about what you're doing differently. 

      "matching accounts to categories" more broadly is also thinking of an account as being for xyz kind of money. This is matching the purpose to the location. So if you  (both generic "anyone" and you specifically) have an account that is for "future expenses" and that's how you think of it, that falls under the umbrella of having not fully embraced account/category independence.  Your transfers back and forth might actually be unnecessary depending on what your cashflow looks like. For example, if in the month that you need to buy the thing you are saving up for you don't transfer any money out to the "future account," it's possible you could just spend money from your checking directly on the thing without moving money back into checking.  

      It's the very act of "this money is for this thing" that traps people in the cycle of "transfer here, transfer there." Whether they are automatic or not...there's an even better, more straightforward way to do it that comes from fully embracing the fact that YNAB doesn't care where your money is. And then you can start doing crazy things like transferring $1667 from checking to savings just to grab a $50 bonus. What is the $1667 for? Who cares? It's just money and Capital One will give me $50 for moving it around. 

      Reply Like 1
      • MsTJ
      • Gray_Nomad_f6eeb59e1a1c
      • 1 yr ago
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      JoeDid I also sometimes wish there was more to do in my budget.  Glad to see I'm not alone.😀

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      • JoeDid
      • Remember: It is To Laugh
      • Purple_rain
      • 1 yr ago
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      MsTJ Thanks. The way I have it set up is so easy, that I'm reluctant -- no: I don't see any reason or need -- to change it. Having a tough time getting others to understand that. My budget: my method. It works fine, other than giving me too little to do with it.

      Reply Like 1
    • JoeDid
    • Remember: It is To Laugh
    • Purple_rain
    • 1 yr ago
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    WordTenor said:
    "matching accounts to categories" more broadly is also thinking of an account as being for xyz kind of money. This is matching the purpose to the location. So if you  (both generic "anyone" and you specifically) have an account that is for "future expenses" and that's how you think of it, that falls under the umbrella of having not fully embraced account/category independence.  Your transfers back and forth might actually be unnecessary depending on what your cashflow looks like. For example, if in the month that you need to buy the thing you are saving up for you don't transfer any money out to the "future account," it's possible you could just spend money from your checking directly on the thing without moving money back into checking. 

     If the location of the $$ doesn't matter (everyone here says that: right pocket/left pocket, etc.: doesn't matter) why are you telling me I shouldn't keep the $$ in an interest-bearing savings account? Are you saying I should keep it in my non-interest bearing checking account instead? To avoid transfers?

    I pay the expenses from my checking account, not from the Future account. Transfers from it to checking, both in YNAB and at my bank, are made automatically, exactly when needed, without any intervention on my part, as are payments out to the providers when the bills are due.

    I assure you, I'm not being contrary on purpose. I don't see where I am, in your estimation, failing in my application of YNAB.

    Please keep in mind that everyone's financial (and in my case, health) situation is specific to the individual.

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      • WordTenor
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      • WordTenor
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      JoeDid We're not telling you not to keep your money in an interest-bearing account. That's where you are demonstrating that you don't understand what I mean. In fact, fully separating accounts from categories is about maximizing the amount of money that is sitting around getting interest. 

      Say you receive $1000 each month and spend on average $800 (just to keep numbers easy). So every month, you sock away $200 in categories and you have an auto transfer to savings of that $200 to your future expenses account. $50 of that is for a $150 quarterly bill. Your method has you auto transfer $200 to savings each month, and then the month of the quarterly bill, you transfer $150 back to checking to pay the bill. When in actuality, because you receive more extra income than you need to pay that bill, you can pay that bill easily in the month it is due without ever making the transfer back from savings. In that month, you will send only $50 to savings, keeping $150 of the recent pay deposit to pay the quarterly bill. Add in a credit card with a grace period and it all gets even more wonderfully crazy--you only need to worry at any given time about last month's statement, and any payments that must be made with the checking account. As long as that money is in checking, everything else can be sitting around earning interest. 

      I'm with you on the different financial situations. The thing is that this actually works no matter how much money you're talking about. Where I went wrong early was in going, "I don't think you all understand; I'm a broke graduate student living very much on the edge, I don't have any extra money to pretend that my categories and accounts are separate." I had a cash net worth of $7 the day I started using YNAB--what savings I had was entirely offset by the balance on my credit card. I figured all these people doing this stuff with their money were just way better off and that was why it worked for them. I was really wrong about that, and as a result, now I'm one of those people who is doing this stuff with my money and having way more success and fun as a result. 

      Reply Like 1
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 yr ago
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      WordTenor I love the credit card timeshift when it comes to cashflow management. I also love being able to just generally cashflow my checking account. Even though I locked all that money away at Ally till mid-January, I was still able to cashflow quarterly property taxes and our upcoming credit card bill that include a 12-night cruise pay off.

      The only thing I can't do right now is send the monthly leftovers off to Vanguard, but I'll be doing that as soon as I build up a more comfortable balance in the checking account or when I get back from the cruise I can unlock some of that money from Ally.

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      • WordTenor
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      • WordTenor
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      JoeDid As I tell my students, I can’t read your mind. I can only read your writing. 

      You have described someone who is using YNAB less efficiently than they could, and you keep demonstrating through your replies that you don’t understand what the rest of us are talking about. If you don’t actually use YNAB that way, sorry about that, but that’s not what you’ve written here. It’s quite disengenious to get upset about someone else taking you at your word. 

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      • JoeDid
      • Remember: It is To Laugh
      • Purple_rain
      • 1 yr ago
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      WordTenor You realize you just insulted me, right? Disingenuousness has never been part of my makeup. Nor am I upset (another assumption): I'm frustrated because you haven't convinced me how it is that you think I'm matching the Future Savings account balance to the category balances to which those funds apply. They do not match.


      I'm only repeating what I said earlier, that you have no idea what the status of my finances is. The scenario you posited earlier doesn't work for me.


      You deleted the part in your post, which arrived in my mailbox, where you said that I <quote>don’t understand what the rest of us are talking about, starting with the idea that this was somehow about direct import.</quote> I never said I use or don't use direct import. That tells me you're misreading my posts. Anyway, you edited it out of the final post online, so maybe you realized that was wrong.

      I don't need anything from you, going forward. Interesting exchanges, nonetheless.

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      • WordTenor
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      • WordTenor
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      @JoeDid  Yes, I edit because when I realize I did something like accuse you of doing something that someone else did, I figure I should fix that so that I don't wrongly accuse you of something. That is good etiquette. Most people would go, "Whaaaaa I didn't say that....oh wait, that user edited that out, I bet because they realized I didn't say that." But if you want to get angry that I made a mistake that I then fixed...okay? I can't stop you. 

      I remain unconvinced by what you have written that you understand what we're talking about, nothing you have written convinces me otherwise, and you don't want to explain further, so we are at an impasse. Sorry about that, but I can't draw on anything more than what's here to make a judgment. Online forums, amiright? 

      Reply Like
  • Semi-related / attempt at finding a middle ground in this debate:

    I operate a joint YNAB budget with my wife, but I'm the primary manager of our family finances and am more steeped in the YNAB methodology. She still clings pretty hard to the budget-by-account-balance mindset, despite my best efforts.

    My tactic is to keep our checking account balance as low as possible -- just enough to meet our cashflow needs -- and park most of our money in CDs and savings accounts that my wife does not frequently monitor. It reinforces the feeling that we're "poor" and constrains those spending impulses of having a big pile of cash burning a hole in your pocket. Out of sight, out of mind...

    If you're all-in on the YNAB methodology, you shouldn't need that extra reinforcement -- your category balances should guide your spending, not your account balances. But old habits die hard, and some users might never fully embrace the YNAB way. So by all means, adopt whatever combination of tools and techniques works best for you and helps you achieve the best outcomes!

    ** With that said, I strongly discourage anyone from attempting to synchronize account balances with YNAB category balances. As others have pointed out, that's hugely time consuming and doesn't provide any real benefit.

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      • JoeDid
      • Remember: It is To Laugh
      • Purple_rain
      • 1 yr ago
      • Reported - view

      bret 

      Thanks. I appreciate your point of view.

      I also keep my checking account balance as low as possible, but only because it doesn't earn any interest.
      Every month I drop ~$65 into my Future Expense account. They're automatic transfers in YNAB and at my bank.

      Over time the funds build up as assurance that I'll be able to pay the long-term expenses that they cover.

      Three times a year I transfer funds back to the checking account when that becomes necessary, to be sure the expense is covered. Since it's so infrequent, it's easy to program those transfers in YNAB and with my bank. All I need do is monitor and approve the transfers. I get bored because I have so little interaction with YNAB, despite looking at it lovingly every day, sometimes more than once, hoping against hope that there's something I need to do.

      And I'll repeat again, just for sh!ts and gr!ns, that I don't synchronize account balances with category balances.

      Reply Like
      • bret
      • bret
      • 1 yr ago
      • Reported - view

      JoeDid 

      Sounds like a solid approach. Once a person adopts the YNAB mindset, maximizing interest earnings and avoiding overdrafts should be the only considerations when deciding where (= which account) to store their money. It sounds like you already have that mindset, but many beginner users don't.

      Reply Like
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