Capital One 360 user
I have been using Capital One 360 for years. I have 20 separate accounts and have been moving money from one to the other every month, such as from Pet Expenses to Visa. YNAB is like learning a new language for me. Can anyone guide me a bit? Here are my questions:
1)Should I close each of these C1 360 accounts and move the money into one account in a high(er) interest bank?
2) I have amounts saved into each C1 360 account, such as Pet Expenses. Should I move that amount already accumulated ($155) to December Pet Expenses and then continue to budget the $20 per month after that?
I used to have multiple CO 360 accounts. Once I started using YNAB in 2014, I consolidated them down to 1. I noted that the balance of the Hawaii vacation account was $X before I closed it and made sure that my Hawaii category had $X budgeted to it and so forth for the various accounts as I went through the process of closing them. And if your Pet Expenses do require $20/month, then yes budget $20/month to the category, but it doesn't matter where the money lives.
Also, as an aside, I recently closed my CO 360 savings account and moved all the money into a CO 360 Money Market Account because the interest rate was better (1.3% for balances over $10K vs 0.75% on the savings account though if your balance is under $10K it is only 0.60% in which case the Savings Account is better).Reply
I used to have multiple savings accounts dedicated to specific tasks but after watching YNAB videos back in 2013 and reading several articles I realized that simplification of accounts is better, less to manage. Here is a link to simplification topics created by YNAB. https://www.youneedabudget.com/guides/simplify/Reply
I also used to have multiple sub-accounts at Captial One (or ING) for every possible saving goal I had - emergency fund, vacation, car repairs, medical, etc. After getting the hang of using YNAB, I consolidated down to 1 account just called savings. Over in my YNAB budget, I have a category that corresponds to each of the savings accounts I used to have. I put the amount of money into the category that was in the savings account until the total amount I had saved was accounted for in my YNAB savings categories. I was really nervous when I did this, mostly because we are conditioned to have lots of different savings accounts, so I thought I was going to mess something up. It was so freeing! I wish I had done it sooner. Now I don't have to account for piddly little amounts of interest in several different accounts. Plus, in YNAB I get to move money around quickly and easily as needed and it has no effect on my Capital One account.
I'd recommend getting yourself down to 1 account and let the budget do the heavy lifting for you!Reply
Perfect. Thanks! I also have a number of bank accounts for sign up bonuses, which I will close when the required 90 day period is up. I plan to get to one high interest on-line bank and the brick-and-mortar for every day transactions and cash needs. I am retired and keep $100K+ in various accounts, in case of a downturn in the stock market. Would you know how to set up an account in YNAB for a specific amount owed to me? I loaned 3 of our kids money that they repay monthly. Thank you!Reply
So I have added the Other Asset for each of the kids' loans. When 2 of them pay me, part of the check goes to the loan repayment and part goes to auto insurance. I would split the transaction and do a Transfer to Other Asset, Seth Car Loan. What would I list as the Category? On the other part of the transaction, the Category would be Auto Insurance. Who would be the Payee?Reply
Just hopping in to add to the wonderful advice you've gotten: check out the Simplify Guide for more on whittling down those accounts.
You were probably using those accounts to give jobs to your dollars, but your categories in YNAB do that for you now.Reply