Dealing with overspent after month rolls over.
Hi all! My son in law got laid off with no notice a couple of weeks ago and unfortunately their housing was provided with the job so they were homeless also. I made an unplanned trip to the west coast to pull a uHaul trailer back. I left on June 26 and got home on July 3. I didn’t have time to set up the budget to take into account the trip expenses. I am just getting around to reconciling all my accounts. I knew I had the money to do the trip (Tks YNAB) but it wasn’t budgeted for those expenses. I have two questions:
1. a bunch of my categories show overspent. I had income at the end of June that I haven’t budgeted yet so I have cash to cover everything. I’m not sure if I cover overspent will it apply to the June transactions or will it mess it up somehow if I cover those now. Some are orange and some are red. I get confused with monthly roll overs at the best of times. I put most of my expenses on my credit card so I want to budget the expenses and have them calculate to be paid against the card. They always say YNAB is only forward looking so I’m not sure what will happen with the June expenses. At this point I have reconciled my bank accounts and credit cards and I’m ready to do my budget but I’m worried that it will get messed up.
2) The trip expenses were a “one off” - would it make sense to put all the expenses in one category group so they don’t distort my regular expense categories? Or should I just leave them in the regular categories: ie gas, hotel (travel) etc.
Thanks for any input !
I would put those expenses in a dedicated category so averages are descriptive of "normal" usage.
Fixing overspending is up to you, and you can cover it in June's area if you like -- it is recommended practice.
If you don't, then the July TBB will be reduced to cover the red overspending and the CC Payment category will be short in the amount of the yellow overspending. You would need to budget to the payment category to allow a larger payment and restore paid-in-full status.
I would only add that you can also put things into YNAB retroactively and it will show up correctly for reporting purposes. To clarify a bit... if you go back and add a special category for these expenses, then make sure that you change the budgeting month to last month in the browser, then budget funds for the unexpected expense, it should end up with those original categories not in the red (since you moved the transactions to the new category as recommended by dakinemaui ). Then your reporting for the previous month will show up correctly any time you go back and look at it. Nothing wrong with modifying dates of transactions to get them into the correct month... even if that month is in the past. Hope that helps along with what was already suggested.