Rolling over spending into the next month
I was just looking at my budget, and I can't figure out if there is a way to do this or not. I thought there was, but I'm not seeing it.
If I over spend in a category this month, but know that I'm going to get paid for something next month, I'd like that over spending to show up in my next month's budget. This would be spending on a credit card, so it's not going to put me over budget in cash flow. Is there a way to have that over spending roll over to next month?
Overspending does not stay within the category into the next month.
Overspending in cash comes out of your TBB in the next month.
Overspending on a credit card does not transfer the spending to your credit card payment available, implicitly increasing your credit card debt.
The money's gotta come from somewhere. In real life, you can't pay for something with an IOU in a zero-sum system. You should correct for the overspending now and then make adjustments to next month's plan to correct for the changes you make now.Reply
YNAB is not about "cash-flow", it's about reality of your financial state at THIS moment in time. I mean, cash-flow in a traditional sense is essentially stealing money that you intended to use on Expense A to pay Expense B and hoping you don't get caught with your shorts down. In your particular case, you simply have a temporary debt increase.
Categorize the inflow back to the same category (so total spending = $0) and reallocate for debt reduction. (Move funds from that now higher category to the CC Payment category.)Reply
Hi farfromtheusual !
Only positive amounts in your categories will roll over into the next month. Negative amounts will not. What happens to those overspending amounts depends on whether the overspending was with cash or credit.
- If cash, that amount will be deducted from To be Budgeted in the new month.
- If credit, the overspent amount will be represented as an increased balance on your credit card account.
The option to carry that negative from month to month was allowed in YNAB 4 but we did away with that option because we wanted to keep your budget honest. When there are negatives in your budget, you can't trust the amounts you're seeing.Reply
Faness Thanks for your reply.
While I understand YNAB's stance on this, it makes it difficult when you KNOW there will be money coming in from somewhere, but it crosses over the month date marker, which is arbitrary anyway.
This isn't a situation that I'm making a habit of, but it happens once in a while, and it would be far easier to track it if YNAB allowed for the option to roll the over spending across the month. Most credit cards aren't even due on the 1st anyway, so the date as a marker that doesn't coincide with anything.
As it is, I feel like it's easier to "hide" the debt if you're over spending on a credit card by having the debt not roll into the next month. If it's credit card spending and you over spend in a category, then the category ends up at zero when the month changes, and that means you have to consciously go apply extra funds to the credit card in order to not accrue additional debt on the card. It's way easier to ignore the debt on the card and add new funds the categories with the next income in the new month. It's essentially a free pass to start over with your categories, while the debt hides over on the accounts column.
It would be helpful if this is a feature that could be turned on or off for specific categories.
Hopefully Jesse Mecham can work on some options to improve the system even more.Reply