Budgeting with Equity (RSUs)
I am new to YNAB and could use some basic guidance in two areas. I tried looking through past forums but got lost so hoping someone can just directly answer my question here relating to budgeting with RSUs.
Right now, I have an emergency fund, some cash (depleting), and a lot of money in vested RSUs (growing; I get 50% of my comp in RSUs). My partner is no longer working since the pandemic and we now spend more than my cash salary each month But with my vested RSUs flowing in on a regular monthly basis, we have a comfortable margin. So I need to count my RSUs as part of my budget (before I wasn't touching them).
My question is: what cadence/strategy would you use to fund my budget? For example, I could just sell a bunch of RSUs and fully fund everything for the next 6 months. In other words, fund 2x a year. Or should I figure out the monthly amount I need for true expenses and selling that amount of RSUs each month? For some reason, the fact that this is RSUs is tripping me up.
Hi, there! Welcome to YNAB! :) When it comes to the timeline you use selling those stocks, that's totally up to you. You might talk with any financial planner(s) you may have on your team and consider:
- How easy is it to sell and transfer the funds? Do you want to do this action more or less frequently?
- What return can you expect now vs in the future?
- What would be simplest? What action would give you the peace of mind you and your spouse need right now?
No matter how often the money enters your account, you'll handle it the same in YNAB: Enter the income as Inflow: Ready to Assign and give every dollar a job—whether you're assigning money this month or future months. All the best to you both!