Income for Next Month Category - When to Release Funds

Hello all, I've been using the Income for Next Month Category since I've started using YNAB and it has been working well. One question I do have about it though is:

 

Once it is funded with both of my paychecks from the current month, in which month should I release the funds to use for budgeting for next month? The current month or the month I am going to be budgeting? I didn't know if either way adversely affected the reporting.

 

Thanks in advance!

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  • In order to keep my reporting clean what I do is I initially have the paychecks set up to inflow directly into the Income for Next Month category and once I am ready to budget my next month, I go back and change the categorization to Inflow: TBB (it’s only 2 transactions) and then go about budgeting. 

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    • jenmas sounds like we do it two different ways....when the paycheck comes in, I let it go to TBB and then "budget" it to the INM category. Your method sounds like it counts the income as "spending" towards the INM category. 

       

      Any advantages of disadvantages of either method?

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      • Budget_NC
      • Tomato_Snow_237e7f17927
      • 3 wk ago
      • Reported - view

      Pianomanmatt I'm doing it the same way you're doing it.  When I'm ready to enter the budget for next month, I move it back to TBB, move forward to the next month, and allocate it across the budget.  I suspect that there is no difference between the 2 methods.  As long as an inflow is recorded against TBB at some point then it should be part of income for that month in reporting.

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      • nolesrule
      • Been waiting 5 years for the Stealing From the Future fix...
      • nolesrule
      • 3 wk ago
      • 1
      • Reported - view

      Pianomanmatt 

      Pianomanmatt said:
      Your method sounds like it counts the income as "spending" towards the INM category. 

       It does, but only until you recategorize it. I do that at the start of the month after I've closed it out. It's quick and easy.

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      • jenmas
      • jenmas
      • 3 wk ago
      • Reported - view

      Pianomanmatt - Yes, as nolesrule states, it's a temporary thing that makes sure that as my paychecks come in they are segregated into the INM category without me having to pay too much attention, but then when it comes time to budget, I can quickly get the exact amounts into TBB, and my INM never shows a negative in either the budget or activity columns.

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  • It doesn't matter what month you release them in. The paychecks came when they came so they'll count toward that month. As far as the timing of when to do it and when to budget, some wait until the end of the month or the beginning of the next month.

    I do it as soon as get my last paycheck of the month. Sometimes 10 days before the end of a month like in May. But the earlier you do it, the more chance you have to steal from the future. With my mature budget, I keep an eye on it but it hasn't been an issue. If things are tighter, you might want to wait until the end of the month.

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