Best way to track Savings Budget/Transfer?
We are curious on the best way to track a transfer to Savings as a budget item with a goal. Currently, we have budget category called Emergency Fund with a goal amount. We then do a transfer from our main account to a savings account but it shows Category not needed. Subsequently, the transaction doesn't get recognized for that budget category. What is the best way to track this so we can set an amount and it gets registered?
Hi Orange Saxophone !
When you have a moment, give this a read: The Relationship Between Your Budget & Your Accounts.
Budgeting funds towards your Emergency Fund category is how you put money aside for your Emergency Fund. Each month, you'll budget more towards that category and the Available amount will tell you how much you have Available in your Emergency Fund.
Orange Saxophone said:
I don't see how this enables us to account for the money that is in there already and keep it tracked easily.
You have to categorize the original amount! Sounds like you already categorized it elsewhere.
- Categorize your existing savings to your Emergency Fund.
- Categorize future savings to your Emergency Fund.
- Watch the Emergency Fund savings grow every month.
That's it. Don't get hung up on accounts. I have my EF and more in my savings account. The only purpose of the savings account is to get more interest on your funds. YNAB doesn't care where the funds exist.