Best practice when overspent in a category?

Hi all - curious to know if there is a certain way this needs to be done.

 

Lets say I overspend by $5 in a category. Should I increase the total budgeted amount (I.e. change budgeted amount from 25 to 30) OR do I have to move money from another category to cover the over-expenditure?  It is also important to note that the money that would be added to the budgeted amount is leftover money I have (everything has been fully funded for the month and I have a little leftover).

 

thanks! 

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  • Your To Be Budgeted amount should be zero after you have finished budgeting — every dollar should be in a category, whether or not that category is for bills, regular spending, or savings.  If you funded all your categories for July, and still have money in TBB, then move that money to a saving category.

    So with that said, the only place then to cover overspending from is another category.

    Reply Like 1
  • You should move money from a category (or multiple categories) to cover the overspending.

    If you just increase the Budgeted, then your To Be Budgeted will go negative, and that  is what is called being Overbudgeted... a state where you have assigned more money than you have to categories.

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    • nolesrule 

      Can you elaborate on this a little more? If I have extra money in the be budgeted that would go to extra savings or the future, why should I not just use some of it to cover an over expenditure?

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 mths ago
      • Reported - view

      Green Filly My assumption was that To Be Budgeted was zero. It should always be zero except when you receive income (or are in the process of your initial setup) and are preparing to budget it to categories. You should not be leaving money in To Be Budgeted. It should always be put into categories. Money intended for savings should have categories for the intended savings.

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      • jenmas
      • jenmas
      • 2 mths ago
      • 1
      • Reported - view

      Green Filly oh, the assumption is that your TBB is 0 because it should be. Yes, if you have money left in your TBB you should budget it to an overspent category. And then keep budgeting as needed to get that TBB down to 0! (but if you have already budgeted in August, you need to hop over there and back some of the numbers out because adding to a category in July can make TBB go negative in August if you have already budgeted there without finalizing July).

      Reply Like 1
  • Doesn't matter how -- either manual budget adjustments or using the Move Money or Cover Overspending dialogs. What matters is that you have covered the overspending and TBB is 0.

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