Net Income
I'm only two day in, so sorry for all the questions, haha! Why under 'reports' is my net income red?
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Hi Purple Mermaid !
There's never a reason to apologize for asking a question! :)
When Net Income is Red it means it's negative - you've spent more money this month then you've made. This actually happens in my budget every month, because I'm paid at the end of the previous month and then pay bills on the 1st - essentially spending money that I didn't make this month.
Since it's still early on in the month, this will change as the month goes along and could balance out depending on the income you receive. :)
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Faness at YNAB Okay, thank you!
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I'm still a little confused...I started YNAB with $627.85 in the bank to be budgeted but my net income is -279.81. It also doesn't list my income or the amount I started out budgeting at the top of the reports page. Did I do something wrong?
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Purple Mermaid Did you categorize any income received since then as Inflow: To Be Budgeted? Your Starting Balances aren't included in your report, only transactions categorized as Inflow: To Be Budgeted are seen as income. So if you haven't received any income, your Net Income would be in the red until you do.
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Faness at YNAB Got it! Thanks!
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Faness May I ask why starting balances are not reported as income? I made the money so in my eyes it should be. If I change the "Starting Balance: payee to say like "Previous income" I noticed it will show up in my reports. Is there some reason I shouldn't do so that I am unaware of that would mess something up. I'm well buffered and it seems not including this is like having a big chunk of income missing in my reports. Is there something I'm missing here that makes sense for it not to report as income?
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Jamn Judy I hope you don’t mind if I jump in for Faness here! In accounting, a starting balance is considered equity, not income, so we decided that the starting balance shouldn't be included in the Income vs Expense Report.
More pragmatically, it would be confusing to people to see that they had all that "income" in their first month when they looked at their reports for the year (or for whatever the time frame).
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Jannelle Thanks for the reply, I get it, I still would like to see it so as long as it doesn't really effect anything else I am going to change it to previous income since I know why it shows it all in one month and for me I believe it shows a more accurate picture in the long run of what my net income really is, but then again I'm no accountant:)
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