Fresh start - how to handle excess cash balance

I’m doing a fresh start after using for YNAB for a year and erasing $40k in debt.

How do I handle remaining checking account balance in “To Be Budgeted” when all expenses and sinking funds are funding?

Create a category and place it there?

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  • The various categories that you'll use in the future probably need the balances they had before. Budget whatever is needed to restore them.

    In truth, I think a Fresh Start is more work, because most categories were probably already correct in the old budget.

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  • Thank You! All balances are addressed and I also am able to cover my budget 60 days out

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  • Alice Blue Mill said:
    I also am able to cover my budget 60 days out

    Opinions vary, but I prefer to put money for months past next month in an Income Replacement category. As I see it, messing about editing things across each of the next 6 months (working on more since I work in a tough field) when a bill increases or my priorities change is a lot of unnecessary busy work. 

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    • dakinemaui Thank You! You essentially create a category and place the money there?

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    • Alice Blue Mill yep. Grow it over time like any category. If it has 6x my monthly income, I know I can last at least 6 months without income, more of I cut back on spending. If I lost my job, I'd just move a month's income to TBB and budget as usual.

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  • PS: GREAT job knocking out that debt!!

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    • dakinemaui Thank You! Feels awesome!!!

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