Wow! It's so different!
I've been a user of YNAB3 and YNAB4 for 12 years now and finally decided to check out nYNAB. I've avoided it because it's pricey and we can't take advantage of what I see is the main reason for the annual fee: the automatic linking to our bank accounts. But YNAB4 is gradually grinding to a halt with 12 years of budget data packed into it so I thought I'd check out nYNAB and see if it was worth paying a hundred dollars a year for or just archive my old budget and start afresh with YNAB4. MAN! What have you guys done?!! Where is the "Income: Available to Next Month" category? That was such a big part of the YNAB philosophy and you've abandoned it? So everything is THIS month's money now? Isn't that living paycheck to paycheck? Did you guys kidnap Jesse and corrupt his beautiful creation while he was tied up in a cell, unable to stop you? I can't even wrap my mind around the way it works now. So, all the money is just available always and I can flip back and forth from month to month and assign it where ever I feel like? Also I can't roll over overspends into future months and therefore keep track of debt on my Fun Money category? So I can spend a $1000 of my $100 fun money (because it was a BARGAIN honey! I had to buy it RIGHT NOW!) and next month it's refreshed with a new balance of $100 and no sign I overspent it?...hey...that's actually not a bad feature... 😉
YNAB was unique and bound by the Four Rules and the goal of getting a Buffer. But now, I'm not sure. Are you long term users and especially YNAB4 converts sure it's still great? It seems really weird now whereas YNAB original seemed to make perfect sense right from the first time I discovered it. Is there a Blog (or a lot of blogs probably, you YNAB bloggers are prolific!) detailing the reasons for the changes from YNAB4? Especially the loss of the "Income: Available to Budget Next Month" category which intrigues me.
And why does my Credit Card activity show $85 on the top view but the true value of $95 when I drill down? I know it's deliberately showing me only the FUNDED CC activity but why? Isn't that kind of hiding my overspending on the Credit Card? I know I will see the big red $10 in the spending category. But just wondering about the philosophy of showing Credit Card Activity=$85 when in reality there was $95
Not rolling overspending into next month is one of he best features of ynab. You are forced to deal with the reality you have overspent and not just roll the ball down the road. The $909 on your example does not just disappear. If it is cash based overspending you will have $900 subtracted from next months tbb. If it is credit based overspending you will increase your credit card balance by $900 and will have to budget to pay that off.
Where is the "Income: Available to Next Month" category?
It's pretty easy to manually recreate this bufferdom.
1. Make a category called Income for Next Month (INM). Since you're starting out now, you'll just assign the sum of your July income to the category.
2. After you've gotten the rest of your budget organized with proper amounts in savings categories, delete the number in the cell in July, then flip to August and budget it there.
3. Categorize inflows throughout August to INM. I use scheduled transactions to save work.
4. When it's time to budget September, go to All Accounts, select your INM transactions, and recategorize to Inflow: RTA.
5. Assign in September.
Repeat steps 3-5 in tech subsequent month.
So, all the money is just available always and I can flip back and forth from month to month and assign it where ever I feel like?
Not quite. It's flow forward from when you receive money.
Some people do seem to budget months in advance, but it's more efficient to just use the INM and have a separate category for loss of income (6 months or whatever).
Does it think i'm still in July because of the real date?
Yes, and I really disagree with this design choice.
I only use the Savings Builder: Monthly Contribution targets because of this.
When the month turns over:
Any positive available amount left in a category will roll over and stay in that category in the next month.
Any negative available amount in a category due to cash spending will be taken from the next month's RTA.
Any negative available amount in a category due to credit spending will be (is already, technically) added to the credit card debt (no CC debt means the amount available in the CC Payment category is the positive equivalent to the working balance on the card at all times).
The Assigned cells, which simply represent the math of moving money into/among categories in a given month, will be empty in the new month.
Maybe using it in the "clever" ways I have has really only allowed me to overspend while feeling like I was in control haha
That does seem to be the consensus of people who have migrated from YNAB 4 and given this new way a chance.
We would have to make sure that she pays it back every month which is not a bad idea, but it's lost functionality. It is back to YNAB3 functionality I believe and that was great even without that feature, but the rollover into the next month is really useful for tracking money owed and money spent on projects where you don't know the end cost so nothing was budgeted. How do we do that now?
I honestly don't mind changing the way we do things. I would just like to know the reason things were changed and how things are better done in nYNAB.
The way to do things for reimbursements now is either to seed the category or float it on credit. There's a help doc on the official YNAB sure, and it's addressed (maybe buried) in that Red Arrow thread I mentioned.
The reason it was changed is because, evidently, a lot of users were abusing the privilege. This is also mentioned in the other thread.
You know what, I think I'm just going to go to Darling Daughter and say, "You know that $1500 you've accumulated over the years? You have to pay it ALL this month because I've switched to the new YNAB and it's not capable of handling your profligate ways any more." 😂
In all seriousness, though, she won't change overnight, so you can choose to
A) put #hername on the memo of all her transactions, including when she pays. Then you'll search/filter for #hername in All Accounts. Select all those transactions and you'll see how much she owes.
B) make her an off-budget tracking account and change the payee to be a transfer to that account. This cuts out a having to filter to see her total, but it also gets rid of the payee. Getting rid of the payee will make it harder for you to remind her what the $50 was for two weeks ago, and it will also likely make things more complicated with importing*.
*I know you can't direct import, but file-based import can be handy sometimes.
Welcome Kingston !! I've been around since YNAB3 as well, although I admit to remembering basically nothing. I held off from the new membership fee for about 3 months before making the switch, and didn't look back. I've found that reimbursements from my kids got trickier, but my budgeting has improved 100 fold.
If you have a chance, check out this video on Creating Your Budget in YNAB - I think it's the most efficient overview.
I used YNAB4 for years and finally switched to nYNAB in ‘19, reluctantly. I finally found my way into workarounds for the buffer and red arrow changes. It was a learning curve but it’s fine for me now. Be grateful you’re not just now starting. The live on last month’s income and buffer explanations from the YNAB4 days changed my financial world, whereas age your money is diluted and non-concrete. I’m not sure it would’ve had the same impact for me now.
I combined YNAB and Ramsey's Baby Steps too. I found them around about the same time and they revolutionised everything for me.
Me too. However, after I was out of credit card debt, I deviated greatly on credit cards and his investing philosophies as well as BS6. He eventually wore thin on me and I stopped listening. Especially the constant selling of his preferred providers. Turns out that it's quite easy to invest on your own and not take a financial advisor hit on your investment funds.
Using credit cards in YNAB is no different than cash since all of your purchases are cash based and then just transferred to the CC each month. Might was well get the cash back rewards and a good credit score.
For investing, the Bogleheads are invaluable. There are very simple 2, 3, or 4 fund portfolios that are just as effective if not more than what the average financial advisor will do with your money. Fiduciary or not. Did you know that just 1% in fees each year can add up to you ending up with 1/3 less money after a 40 year investing period?
And as far as paying your house off, everybody's situation is different and there is no one size fits all solution like Ramsey would have you believe. For me it makes NO sense to do that. I have a very low 2.875% rate and I'm not in my forever house plus I live in a very high cost of living area so my mortgage is quite large. My money is much better off sitting in liquid equities rather than illiquidly buried into my house.