Blip in cash, drop in AoM

Hello!

I've been using YNAB for several months and was days away from hitting the 60-day AoM milestone. (We're points people and charge everything, so 60 days has been our first target.) 

However...

We had a large amount of cash in one of our accounts last month for earnest money for a new home, but only for about two weeks. Since then, our AoM dropped to 28 days.

Now I understand that there's much controversy around the value of AoM, but it's been a useful metric to satisfy my ego and make me think I'm doing something right.

Our months, thankfully, our very similar from one to the next. Should I expect AoM to shoot back up as quickly as it fell, or am I really back to 28 days?

Thank you!

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  • Age of Money has what I like to call a Rule 2 problem. It builds up while you are saving money in your budget for future expenses because you are living below your means, but as soon as you spend it, it's gone. And with a big chunk like that, it's going to make a huge drop because it's consuming a large amount of past income.

    It takes much longer to build back up than it does to drop for this very reason. The max it can increase in a day is by 1 day, although you will see some fuzziness due to the fact that it's an average age of your last 10 transactions.

     

    So no, it will not get back there quickly at all.

    Reply Like 1
  • Couple of data points.

    1. When we made the down payment on our house purchase, AOM dropped by 45 days that month. It took 4 months to get back there. But that drop is artifical because it was only 6 months after we had started YNAB and our income was still mapping back to starting transactions.

    2.  When I bought my car, AOM dropped 76 days that month. It took about a year to recover.

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  • Not the answer I was hoping for, but I at least my expectations are now in line with reality.

    Thanks for the quick answer!

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      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 7 days ago
      • 1
      • Reported - view

      Jeff 

      Because I'm paid once a month, my AoM drops by 30 days on the most inconsequential purchases, like a pack of gum. Talk about disconcerting. Spend less than $2, and watch your AoM plumet 30 days. If the next month is an average or lower than average spending month, my AoM rebuilds back to where it was, and sometimes surpasses it.  But as soon as I complete spending an equivalent of one-month's pay, I drop by 28 or 30 again. Join us in the AoM challenge and share the ups and downs of your bouncing metric and read about what others are seeing in their budget. It's entertaining, but it's not always a metric of how well you're doing.

      Reply Like 1
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 7 days ago
      • 2
      • Reported - view

      HappyDance I was a good boy with my response, wasn't I? 😈

      Reply Like 2
      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 6 days ago
      • 1
      • Reported - view

      nolesrule 

      lol. Yep. Ya done good.

      Reply Like 1
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