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?
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.