YNAB - forecasting

DD265

So I have YNAB and am putting in all my daily expenses etc in there and reconciling frequently.

I've also put in my direct debits and standing orders in so there is some forward planning. These don't deduct from my balance however.

Now I want to start putting together my pots. E.g. putting to one side for car maintenance, hair cuts, horse feed etc. Expenses that are not necessarily monthly.

Do I need to transfer it into a different account? (I do have spares so it's not an issue)? Do I just leave it in the bank account but put a transaction in for it?

Example:

Bank Account - £100 balance.
Standing order - £20 deduction (£80 balance)
Horse feed - £50 not spent but should be put aside

I would like to be able to see that my budget for horse feed has £50 available to it and to know that I can't spend this from my bank account. I think I may have answered my own question in so much as transferring out is the best idea, but all suggestions are welcome

Edit: I should add that my accounts in YNAB are my actual accounts.
Bank account 1
Bank account 2 (horse's account)
PayPal
Purse
Credit card 1
Credit card 2
Savings account 1 (emergency fund)
Savings account 2 (empty)
ISA (empty)

So I do have plenty of "pots" to use!

SeduLOUs

You put the money to 'one side' by putting it into a category on the budget screen. Take all of the money you have and put it into categories (give it a job) until your available to budget is zero.

The £50 for horse is giving the £50 a job. It doesn't mean you have to spend it this month. If you don't spend the money that you budgeted into the category, it will carry forward.

So next month your horse category will have a starting balance of £50, and if you budget another £50 to it, the balance will become £100. It will not go down again unless you take the budgeted money out and put it elsewhere or spend it.

When you spend, you should rely on your category balances, not your bank balance.

If that £50 was all you had left and you had spent everything in your other categories, then all of your balances except horse would be zero - you would know from your categories that the only thing you are 'allowed' to spend on is horse feed, unless you change your budget.

Whether you move the money out is up to you, but YNAB is actually easier to run the fewer physical bank accounts you have.

DD265

Thanks SeduLOUs, I have purely been looking at the accounts and not the Budget. I thought the Budget workshop class was something else so I will do that.

Cheers!

SeduLOUs

DD265 wrote: »

Thanks SeduLOUs, I have purely been looking at the accounts and not the Budget. I thought the Budget workshop class was something else so I will do that.

Cheers!

Yep, it's all focussed around the budget, to the point that eventually your account balances don't even matter - you just keep them up to date to ensure your budget is reliable and you haven't missed anything you've spent and forgotten about.

Have a read around the site a bit more and do the basic budgeting class and I'm certain you'll be well on your way