when budgets start in the middle of the month rather than on the 1st
I'm sure this isn't recommended as a YNAB rule either... well that's too bad because it is not possible for me to budget on the first unless you wanna give me free money to start off that way.
Looks like YNAB was designed to work from the 1st of each month automatically but, I'm sorry my budget doesn't work that way; when the 22nd rolls around my budget for the next month has already started and I can't seem to do that anywhere but Mvelopes where I could set the date of each budget for each day if needed.
How do I start my budget in the middle of the month? I could do this on YNAB 4 by fooling it and starting it on the next month but i can't do that with the online version.
You absolutely don't have to budget on the 1st. When you get paid, you decide which dollars from your paycheck need to cover expenses for rest of this month, and which will be budgeted for next month. In the long run, you will be a month ahead, so that 100% of your April paychecks get budgeted to cover expenses in May and beyond, but YNAB works fine regardless of your payday.
Based on your post, it's not clear to me that you know that you can click ahead to next month and start budgeting money there any time. For example, it's currently April 26 and I already have May fully budgeted.
So how do I split my paycheck across two budgets then? I get paid around the 2nd or 3rd week of each month which covers most bills that are due right when I get paid then there are a lot of bills and subscriptions that are due during the 1st and 2nd week of the new month
So if you get paid 5,000 how are you supposed to split your bills, money and whatever you owe across like that? How do you keep $2,500 for the two weeks and then $2,500 for the other two weeks?
I prefer to think of it as a month rather than spiting it as it logically makes sense for me, my May budget already starts before May even hits and to me that makes more sense, I am not bound by the calendar technically.
It makes no sense to budget for April and May with one paycheck like that... not especially since I've already started 4 days ago and I tend to budget for everything for the entire month so that I can see what my spending looks like as I like to have an overall picture not half and half. I'm aware of giving every dollar a job, that's not a problem here because every dollar does get a job :D
There's a recording of a workshop that specifically touches on this. Take a look: https://www.youtube.com/watch?v=sQeS5kTE6wU
The essence is that you budget what you have now and ask yourself which categories need to be funded before your next paycheck arrives. That's basically it. Setting up a budget template and ordering your categories in the order they need to be funded helps with this.
I get paid between the 24th and the 27th. And sometimes do bits of freelance work that can be paid at any time. It doesn't make the slightest difference. You budget the money you have, when you have it, taking into account what obligations you can't get out of paying that you have coming up before the next time you expect to be paid.
You can put the money in next month if you like, or if you put it in this month but don't spend it, it will be in next month already when you 'turn the page'.
Watch the online classes and tutorials. They really help.
lindsay_g the two group budgeting method makes sense, but its not simple enough for me and my wife so that's not going to work and is too much headache when something changes (but life is full of changes and things WILL change and YNAB is good at going with it).
I get everything all at once so I tend to budget it all at once also; its just that much easier for me to put each dollar to work but I also prefer to work on a 30 day cycle so I don't overspend like someone mentioned because doing it any other way will give me a false sense of extra funds. My payment pays for everything so everything has to be funded even though my bills tend to be spread across the first 3 weeks of the budget period and unfortunately I cannot change some of the bills which makes certain things a bit more difficult than they have to be.
I like your approach best, I am aware that YNAB does rollover; but I'm confused, if it rolls over then it adds to the budgeted amount that I've already set or should I leave it to 0 until I'm ready to fund it? I actually don't mind clicking a button that asks to budget the categories from last month when I'm ready, I suppose that works just as well....
Hello - I hope it's ok for me to ask an additional question here.... I'm a complete newbie to YNAB, and sensible budgeting as a whole tbh - even though I have had 'vague' ideas of what I have to spend on certain things each month! Nothing like this - and long term savings end up getting eaten into because I've not got a real terms clue about what I'm doing with my income!!!
But... Thanks so much for the advice here as this is what I'm struggling to get my head around just now... I get paid on the 25th (it was so lovely adding money to the budget for the first time!!!) and I've gone ahead and put in the whole amount I earmark for petrol into April... - but I've just filled the tank this week and won't do so again until the 2nd May(ish)... have I done the wrong thing adding the total amount into April's budget? f
And if so ... how do I go about changing that? I think what Peter
you are saying about topping up towards the end of the month is what I'll have to do in future -but I'm not sure what to do just now - and I may be over-stressing as I really want to get this right!!!!
And... if I put some of that money/all that's left back into 'To be budgeted' and then add it into May's budget will the underfunding in April make a difference to May's budget?
Sounder that video from Nick True was really helpful - I'd put all my amounts into April without thinking it through - so I've gone back and moved that money into May's budget for everything that is going out on or after the 1st! Phew!!
So yeah - thanks! I'm just not sure about the things that I am partly using this month and next... and things like my 'Birthday's' budget - if I've earmarked money into that category but not bought any presents - does that roll over or should I take it out and move it into May myself???????
Thank you ... very glad! 😊
monkeyhanger That is great! Thanks... so I could have left it as it was - I was a bit mithered it would negatively effect next month! That's great to know it all just moves forward, which makes complete sense now I think about it because I suppose some months I won't have to (e.g.) use as much petrol - and that 'over-budgeted' amount has to go somewhere - it wouldn't just cease to exist!!!!! Thankee - much appreciated!