Budget Rainy Day Fund as Inflow to be budgeted or directly to category

I receive a direct deposit to my savings account. I keep all the funds in my rainy day fund and I want to let that category grow, so I avoid taking funds from my savings. 

Right now the direct deposit is set as Inflow to be budgeted, but could I change the category directly to Savings? Dosen't this affect the "income in" balance in YNAB? 

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  • As someone who's done it both ways, yes. Treat it as income (To Be Budgeted). 

    Make a category for your Rainy Day Fund, and ensure that the current amount you have in your savings account starts off in that category.  To keep the status quo going, set a goal for the amount of your direct deposit, and budget that amount to the category monthly. Then, don't touch the money in that category (unless it's raining...). 

    HOWEVER, there is a better way!

    To use YNAB to it's full potential, do these two things:

    1. Consider what kind of rain, specifically, you are saving for. Job loss? Medical deductible? Car repair? Unforseen expenses? Make categories for those things and determine how much you'd like to contribute.  If you need ideas, search for category ideas on the forum.  There's at least one compilation post. 

    2. Read this article. https://www.youneedabudget.com/the-relationship-between-your-budget-your-accounts-its-complicated/

    I assume you're just getting started, so if #2 clicks for you, fantastic - you just saved a ton of work and can maximize budget, spending, and cash flow decisions easily.

    If it doesn't click right away, don't worry about it. Just work on getting the hang of the software: entering transactions, using the budget to inform spending, organizing categories, etc. Come back to the idea when you're ready. It sometimes takes people a while to wrap their head around. Nbd.

    Good luck!

    Your question was the main thing I wish I knew when I started - I had money in my savings account, being my emergency fund before YNAB. Unfortunately, I didn't realize I had budgeted that money into other categories until about 2 months in. It was a bit painful to feel the (seeming) setback, so I hope you learn from my mistake!

    Like 2
    • Move Light Sound Life thanks. I don't have any trips planned just making a buffer category for later

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