Confused moving to weekly salary cycle
My new job pays me weekly and its causing me a headache (although I appreciate the more frequent paycheques!).
I have large lump sums due on particular days and it would mean reserving money from one cheque to the next, or paying smaller sums ahead of time in some cases.
I can't visualise how this will work in ynab. If I create budget goals to cover these amounts there doesn't seem to be a way to view what my commitments are in advance and therefore ensure I don't spend that cash.
Once buffered this won’t be an issue because you can budget the whole month at once.
For mow if you beed $100 to pay a bill and you need to use money from 2 checks, you will put $50 in the category with the first check so you won’t spend that money and then add another $50 from the next check so you’re ready to pay the bill.
In addition to having dates in the category names, I put a note below the month in the budget page which days we get paid on. This may be one of the customizations allowed by the ToolKit Chrome/Firefox extension, I honestly don't remember. In any case, under May the note says 5/3, 5/17, and 5/31. In June it says 6/14 and 6/28.
Also, when you've been doing this a while you may put recurring transactions for the things that are on autodebit or autobilled. For example, my mortgage is sucked out every 2 weeks and Netflix is billed monthly. Mortgage is a recurring transaction in my checking account, Netflix is a recurring transaction in one of my credit card accounts. So if I highlight the mortgage category, in the inspector on the right there's a bar for Budget for Upcoming. Before I was fully buffered, I'd budget 1/2 of the mortgage payment with each paycheck. I still need to be careful to budget correctly the months in which 3 mortgage payments are taken since my standard monthly target is what I pay with 2 payments.
Hi Aquamarine Wildcat ! Congratulations on the new job! 🎉
The YNAB Method will work with any pay schedule. In fact, I think this is where YNAB shines the brightest. :) If you have a few minutes (five, to be exact!), watch this Whiteboard Wednesday episode.
Another way to view those commitments are Scheduled Transactions ! They don't just keep you organized, they help you plan ahead for your expenses. When you select a category in your budget, you'll see your upcoming transactions in the right sidebar. YNAB will even tell you how much you'll have Available after all of this month's upcoming transactions in that category.
If you haven't budgeted enough to cover a scheduled transaction:
- The Category Available amount will show as yellow.
- You will see an option to Quick Budget the amount needed to fund that category.
Our Help Docs have more information on using scheduled transactions in your budget!
I do the following. I have been using YNAB for almost 4 years
Name ($) Due Date
Maintenance ($690) 15th
Mortgage ($450) 15th
Other items such as groceries I just put a monthly goal and then each paycheck I add as I go.
When I am buffered it also helps me to know at a glance the amount when I want to fund each category. I use goals for my true expenses.