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. 

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  • You can also budget money into the next month. For example, you receive a check on January 31, click ahead to February and start budgeting the money in February.

    Reply Like 3
  • 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 Like 5
  • What do you mean ‘I don’t like using minus values to budget’. Can you explain??

    Reply Like 1
    • satcook Adding minus values in the budgeted field doesn't seem right, but essentially that's what happens when we move funds from one category to another. 

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      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 2 mths ago
      • 2
      • Reported - view

      Green Banjo What about it doesn't seem right? You are taking away (subtracting) money from one envelope to put it into another one.

      If you mean you don't like having to admit that you previously allocated more to one category and less to another category than your current situation requires, I mean, don't let the perfect be the enemy of the good.

      Reply Like 2
      • Green Banjo
      • Green_Banjo.5
      • 2 mths ago
      • 1
      • Reported - view

      bevocat you hit the nail on the head, I need to stop thinking to have the perfect budget where each category precisely funded permanently. It's a living thing and will change day to day.

      Reply Like 1
      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 2 mths ago
      • Reported - view

      Green Banjo Yep, I have no fonder hope than a house that I've cleaned and laundry that's all done and food that's all bought and cooked and ready to eat all the time forever so that I never have to do anything ever again. And guess what? We don't get to have that! Bummer; let's cry it out. And now, I'll be over here answering the same question at work for the eight millionth time then cleaning my litter boxes that'll just have to get done again tomorrow, and you'll be over there moving money from your clothing budget to your gas budget (or whatever) that you're just going to have to top up again later.  What a world. 😋

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  • 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!).

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    • Faness Yes, that's what I mean. I will try your suggested method as well. Thank you for your help.

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