Money is saved in savings account - how to track money that is earmarked for future?

I think this question is best told as an example:

Say I have a category "Holiday". Each month I put in £200.

But I want that money to rest in a no-withdrawal savings-account for - say - 5 months. Each month I put in £200 to the account and withdraw it at the end of the 5 months, to spend on a holiday.

How do I model this in YNAB? The savings account is a tracking account, as it's not to be used for my general budget. So if I put the £200 transfer each month to the savings account - it's already "spent" as the holiday.

In this case, there is no record in my budget of how much of my savings is allocated to the holiday, as each month is summed to zero, and there is no sum of the £200s I have put in - however I actually have £1000 for a holiday.

I hope that makes some sense, has anyone else come up with a neat solution to this?

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  • Having done some reading - I think I need to bite the bullet and but my savings account as a budget account - even though it feels wrong.

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      • Herman
      • herman
      • 4 mths ago
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      • Reported - view

      Cyan Octopus If you want it to show in your budget this is exactly what you need to do.  You might also look at some of the resources regarding location of money.  With ynab, there is also no reason you need to align this holiday category with any specific account.  The category serves the function the account did previously to tell you what job you've given this money.   Now you can use accounts to maximize interest, or rewards or eliminate accounts to simplify.   You now have complete control and flexibility.

      Like 1
  • Yup, you made the right call.  You should have all your (cash) accounts on budget, and then use them to fill your categories.  There's nothing that says you can't still put the money into that account, but you don't need to worry about matching the balance of the account to the balance of the category.  You can put "other" money that's in your checking account into that category too.  As long as you don't spend it, you're saving it.  The category will continue to grow and you'll continue to earn extra interest on whatever money is in that special account.  But you can still spend from that category without transferring money back into checking.  As long as you have enough in checking, it can be spent for anything.

    Like 1
  • It might feel wrong but you'll learn in time that it's exactly right.

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  • 4 mths agoLast active
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