Age of Money ->Seems to be impacted by On-Budget account transfers
I understand the age of money metric for the most part. (How long a dollar lives in your account before spent) I've noticed, however, that moving money between accounts that are "on-budget" (Not tracking) negatively impacts the age of money.
My Question is Why? Details of what I am doing is below;
A high-interest savings account where I keep my emergency fund, and other savings goals to maximize my interest gain from that money as it's going to sit for >6 months or more. I budget ~2 months ahead, and when each next month is 100% funded, I make a bulk transfer from checking to savings.
The transfer is split between the categories as an outflow from checking then inflow to checking. The Pay-ee is Transfer From xxxx then Transfer To xxxx.
Doing this seems to drop my AoM, but its not consistant.
Using the YNAB toolkit days of buffering I am >175 days, and I carry very little debt.
I figured it out,I was doing my transfer incorrectly.
Read this Blog Post:
Deleted, and re-entered the transactions, and my AoM more than doubled. :-)