changing the rollover date
Hi everyone, is there a way to change which date the new month starts? I get paid a few days before the end of the month so want spending in the last few days of the month to come out of the next month's budget, if that makes sense..?
No. You can't adjust the months to align with your paycheques. That would keep you in paycheque to paycheque mode, which YNAB aims to help you eliminate. The goal is to be able to not need any of this month's income because you're already covered from previous months' income.
I have the same pay schedule as you. All the income I receive at the end of this month is used to budget next month. When starting, you may have to budget some of your paycheque to the final purchases and bill payments of this month. If you can adjust money you already have in your accounts to cover the rest of this month by redefining those funds to needed immediately, then you can free yourself from the cycle and budget all of January's pay in February.Reply
If you spend money this month, the category in this month's area needs money. That doesn't mean you cannot budget your paycheck entirely in next month's area -- in fact this is encouraged, in order to get ahead. With the check you receive toward the end of January:
1. Budget for the remaining expenses in Jan.
2. Budget for expenses in Feb that will occur before your paycheck.
3. Budget for the monthly portions of any True Expense categories.
4. Get ahead by budgeting toward outflows occuring after your Feb. check. Even a partial contribution is great.
You'll note that if you can do #4, then you won't have to budget any of the Feb. check in Feb's area. Then you have achieved your goal of budgeting the Feb. check entirely in March's area.
Depending on the size of your outflows at the end of the month, it may take a few months of increasingly larger partial contributions until those categories are filled out, but eventually you'll get there.Reply
Hi RowS !
That’s a great question! The YNAB Method will work with any pay schedule. In fact, I think this is where YNAB shines the brightest. 😀 If you have a few minutes (five, to be exact!), watch this Whiteboard Wednesday episode for more info.
With YNAB, it’s not only about the calendar, it’s about the method (trust us on this one). What you do when you’re paid is more important than the date itself. Just use these three steps:
- Record your income.
- Give those dollars a job. Ask yourself, “What does this money need to do before I’m paid again?”. Do you have an Immediate Obligation that needs to be taken care of before your next payday? Budget money there. If you have extra, budget towards your True Expenses.
- Spend. Don’t forget to check your category balances first! :)
Rinse & repeat! Once you get into that rhythm, you’ll notice how it’s not about the calendar or the pay period or having multiple accounts to handle different things. You’ll see that it comes right back down to those three steps, and that one very important question: “What does this money need to do before I’m paid again?”.
To jump in with both feet, I recommend taking a workshop or two! A great place to start is with the “Learn the Four Rules” one.Reply