Budgeting when there is no income
Hi, I am currently not working (my choice, practicing early semi-retirement), so there will not be any income to my budget. However, I plan to live on my savings which already exist in my budget and budgeted to the imaginative category of 'Savings'. I have been saving for just this day for many years. I want to test living on a particular amount per month and I am wondering the best way to this. I want to allow myself so much 'budget' and live towards it.
So far the best way I can think of is to create a new category called 'Monthly Allowance' and to move my target living amount to it from 'Savings'.
Now when I budget for the month and need to get TBB from Red to Green I would only move money from 'Monthly Allowance' and once it has gone it has gone.
If I needed more in any month I would move it from 'Savings' as a last resort.
Is there a better way, I'd love to hear of any suggestions.
Another challenge I have is how to know how much I have budgeted for the month; the only way so far is the record the amount in the 'Savings' category at the start of the month then deduct from the amount remaining at the end of the month - the difference is the amount I have budgeted to the other categories.
I have thought about moving my Savings into tracking accounts which would enable me to move money into TBB as an income but my Savings are in many accounts so this seems complicated, but doable.
I am sure there is an easy way to achieve what I need.
Thank you for your help.
I would set up the account with the savings as a tracking account. Then I would physically transfer money to an operating bank account that is a budget account. When you transfer money from a tracking account to a budget account, you have to categorize the funds. You can categorize the monthly transfer as TBB as if its income, and then budget as normal.
dakinemaui Moohouse MXMOM
Thank you these are all good ideas.
MXMOM I had been playing with moving funds off budget then back again to generate a transaction that YNAB would see as income, I can do this in YNAB without actually moving any money at the bank.
I will have a further play as I do my August budget, the first without any real income.
Thank you for your help