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!
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.
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.