Latest Update Overspend change

We have been using YNAB succesfully for about a year now but the recent upgrade makes this software hard to use.

We used to budget our month, we had alot of subcategories etc.  At the end of the month if a category was in the red it would roll over red to the following month which would mean you needed to top up or add to that category to take it out of the red.

This new update doesnt roll this over to the next month, or i cannot find an option to allow this to happen.

Can someone help me here please.  We want to use this option as we are not alot in debt so we have the flexibility to go over but we also like to be disciplined and watch our spending.

Thanks

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  • Hey  Green Cello thanks for reaching out on this. This is definitely one of the bigger changes from YNAB 4. 

    While there's not a way to change how the rollover works, here's one of the reasons why we've made the change in the new YNAB. Because the YNAB Method is built upon the foundation that you can only budget and spend the money you have in your hands right now, we built that in to your budget. 

    If those dollars were overspent in a category, and they rolled over as a negative in the new month, you couldn't fully trust your budget in that month, even if that overspending was for a temporary period! Sure you had -$15 overspent in a category, no big deal, right? But then you couldn't fully trust the other available amounts in your categories since that overspending hasn't been dealt with. Did you really have $250 for eating out? Maybe.

    That's why Rule Three is really a rule in the new YNAB. We want to make sure your budget always reflects reality, so the new YNAB is a more honest picture of your budgeting reality.

    It's definitely a large shift in thinking, so let me know if you have any questions!

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  • Hi, Green Cello

    in the web version of YNAB, you cannot carry a negative forward in the category to next month (or borrow from next month's category allotment).  An overspend this month if done in a cash-based account and if left unaddressed now reduces your total to be budgeted next month, and you decide when filling out next month's budget which category gets a little less.  There is no option to change that.

    Edited to add:  I find change difficult when it's a ritualized process that works well for me, so I know this might be annoying or grating to you. I would not dismiss what you are feeling for anything.  But I can testify that  I have come to realize that for myself choosing to spend less in another category this month for an overspend is what enabled me to really turbo-charge my savings rate in the last four years.  It's only in looking back that I now realize how some of that success is the result of many minor overspends I chose not to make because I was unwilling to reduce another category.

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      • JoeDid
      • Remember: It is To Laugh
      • Purple_rain
      • 1 yr ago
      • Reported - view

      HappyDance Well said! Thanks for explaining where that hypothetical -$15 actually ends up, TBB.

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