Savings account conundrum

After 2 years on YNAB, my checking account has swelled to the point that I want to move some of it into a savings account (yay YNAB!) I don't want anything to change in my budget though. I am budgeted out several months into the future rather than having a generic "savings" category. So how do I move a lump sum from my checking account to a money market savings account without YNAB counting is as an expense? For what it's worth, both accounts are at the same bank. 

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  • Add your savings account as a budget account in YNAB, starting balance of $0. Enter a transfer from checking to savings that matches real life. You're done!

    Going forward, you'll use a two step process for spending decisions:

    1. Do I have enough in this category? If not, adjust the budget or purchase.

    2. Do I have enough in this account? If not, transfer from account to account. 

    Tip: Turn on your running balance and use repeating scheduled transactions to get an idea of the cash flow in your checking account.

    I usually look ahead a month and ensure that my checking has a low point of $X immediately before I get paid each month. The rest I'll move to savings to maximize interest. Others like to keep a minimum of a month's expenses plus $X in checking. You'll find your comfort zone 

  • Move Light Sound Life said:
    starting balance of $0

    Actually, set a starting balance of whatever the current savings account has. Then make plans for all those dollars (assuming there are some).

    If you want to transfer, just transfer. There is no impact to the budget. Purpose (category) and location (account) are completely independent concepts.

    Move Light Sound Life described the mechanics, having cash flow decisions (where money is located) based on the running balance. Here is some additional background information:

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    • dakinemaui If the OP opened the Money Market Savings Account after they started YNAB, even if the account has money before putting it in YNAB, as long as that money originated from the checking account, the starting balance should be zero.

      Otherwise, either the budget would be inflated (and checking wouldn't reconcile) or the equivalent transfer in checking would have to be transferred to the ether and categorized as an expense, which is neither accurate not what the OP wanted. 

      Or maybe I have misunderstood?

      • dakinemaui
      • dakinemaui
      • 13 days ago
      • Reported - view

      Move Light Sound Life whatever it takes to make the YNAB account balance agree with the real world account. If TBB is nonzero after that, give those dollars a job, too.

  • That worked great, thanks for the help!

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