Budgeting at the end of the month
I get paid twice a month(middle and end). What's the best approach for budgeting the money I receive at the end of the month?
A)Budget the same day until nothing is left to budget, this way categories fill have some funds available going into the next month.
B)Don't do anything, so the new month starts with the "To be budgeted" amount and make the distribution during the first day of the new month.
I did the option A, however I don't like using minus values to budget.
The money for my February budget was earned throughout January. Some of it arrived on January 31.
As that money arrived, I gathered it in a category I created called "Income for Next Month". I do that because I prefer to budget it all-at-once rather than piecemeal (as each inflow arrives.) On February 1, I emptied that category out and applied it to my February budget. Rinse, repeat.
This is a workflow popularized in previous versions of YNAB, often referred to as "Living on Last Month's Income."Reply
Hi Green Banjo !
When you say minus values, do you mean budgeting in the past month (January) but then moving money in the current month (February), so the Budgeted amount is negative when you move funds? If so, and you want to avoid that, you can move forward to February, even at the end of January, and start budgeting ahead. That puts Budgeted amounts in February so you can move money around without creating negatives (though negatives are not a bad thing in the Budgeted column!).Reply