Building Up My Savings Account
I have several budgeted items I'm saving for with goals.
When my paycheck arrives in my checking account, do I simply transfer money into my savings account? How does that reconcile with my budget savings goals?
I'm confused on this. Please help!
Rule-1 says to give every dollar a job (category).
Rule-2 says that some of those jobs should include long-term / infrequent expenses like "Christmas Gifts", "Car Repairs", "Vacation", etc.
If you're following those rules, then naturally some portion of your money will be "saved" -- it's assigned to jobs that you don't expect to happen right away.
At some point, you might observe that your checking account balance is growing pretty large with all of those "savings", and you might want to transfer some of that excess money over to a different bank account where it can earn better interest. You don't have to do this -- YNAB doesn't care, and it is indeed simpler to keep all your cash in a single account! But the interest earning potential could make it worth the effort.
Of course, once it's time to pay for those "True Expenses", you might find you need to transfer some money back to your checking account.