starting balances

Why is YNAB telling me I need to budget my starting balances. I have money in a checking and savings account that were not inflows of money in Jan yet YNAB is asking me to assign a category. 

 

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  • The category is to be budgeted. And then you do need to give that money jobs 

    ynab is a digital envelope system. Imagine all your money laid out on the kitchen table and then you are stuffing it all in envelopes 

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  • So if this money was being saved for a house what would I do in YNAB

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      • jenmas
      • jenmas
      • 2 wk ago
      • 4
      • Reported - view

      Ivory Vacuum create a category called Down Payment. Allocate funds to that category. Done.

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  • Rule 1. Give every dollar a job. Every dollar. Not just new dollars. The money you currently have in accounts is in those accounts for a reason or (more likely several reasons). Those reasons are the jobs.

    So the inflows of the starting balance go to Inflow: To Be Budgeted category. Then on the budget screen you assign that money to categories. if the category you want doesn't exist in your YNAB budget, add a new category.

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  • I just started and this also threw me off. I realized I had savings "just because" and I wasn't putting it to any goal. So I looked at what I wanted my savings to be for and made those into category groups and categories. One category group is my short-term savings goals (annual fees, gifts, city parking, etc) that I put a little in each month - I broke down those specific items and put the date (I always have to buy a city parking sticker in June, so it's a target with that date). My long-term savings I marked as emergency fund and vacation savings. Using the category groups lets me see that my savings that are actually in those two accounts match what YNAB thinks I should have budgeted each month, and the next month it automatically adds to those savings. 

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      • Annieland
      • I was told there would be no math.
      • Annieland
      • 2 wk ago
      • Reported - view

      RachelAKG That's the way to do it!  Way to go in getting up and running so quickly!  You're already a pro :).

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    • RachelAKG That's how it's done! 

      Ivory Vacuum When you're starting YNAB, it can be like sitting down for a very personal interview. "So, what's this money in your savings account for?" "I dunno, it's savings." "Yeah, but savings for what?" "Well, some of it's for a down payment, and some for unexpected car repairs, and..." "GREAT! Make those categories and put that money in them!"

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