I know I would have paid the same in taxes; that's unavoidable. I wouldn't notice anyway. We keep 2 savings b/c the first smaller account does instant transfers for emergencies, whereas the Ally bank takes 2-3 days to transfer, but makes better interest. Big banks are greedy misers. But why then are there interest categories ? Short for You Need A Budget, YNAB is one of the better established budgeting tools. By the way, you don't have to use any of the default spending categories that come with a new YNAB budget. It just makes it easier for me. A certain amount each month, and then at some point I decided I'd add interest income into it as well. I have an "Interest" category in my savings master category. However, I realize you have to say that, so other people, who may actually care about the reports will know not to follow my example. Stash has 3 tiered plans from you to choose from. None of my categories or groupings of categories add up to any particular account balance (3 checking 3 savings, 4 CDs, 1 giftcard, 3 cash). :), Hi - I know this is an old thread, but I just wanted to ask a question about this. 1 In the Immediate Obligations category group, create a category to hold your interest … Currently I have 2 savings account, 1 for university and 1 to hold any "extra" cash to benefit from some interest … I'm simply saying it works for me. You Need A Budget - 2.94k Followers, 260 Following, 3178 pins | We teach the YNAB Four Rules to help you stop living paycheck to paycheck, get out of debt, and save money faster. You budget all $500 of it to groceries.You have an automatic transfer that puts $50 into a savings account. No, really, are you kidding us? That's a number with a comma in it, a long, long way from my first year with it's piddling $2.85 interest earned for the entire year. I'm migrating from YNAB 4 and am halfway through my trial period.  I suggest Inflow: To Be Budgeted. Expense report has given me good information that was a bit unwieldy to get in All Accounts (like real data for split transactions). They're moderately interesting, but maybe not earth-shattering. Bruce There are certainly things I can think of to make them more useful (show hidden categories, rearrange category groups to compare for just the reports, drill down into categories in multiple groups and "all other categories," showing graphs of budgeted and available amounts, and making it easier to change the date range, to name a few - all of which I've requested at least once). Embrace your true expenses. But I can see what you're saying, and any other time any other source of extra income comes my way (bonus, windfall, 3rd paycheck of the month etc.) In 2019  I felt so accomplished when it added up to a 4-digit number. Are you kidding us? The location of my money (account) has nothing to do with the purpose (category). The cat cannot catch all the mice if it is kept out of the kitchen. Thanks. I'd likely still have the same bank balance. You are saving that money for something or somethings, otherwise you wouldn't be saving it. Others are variable: vehicle registration r… Health Savings Accounts (HSAs) are tax-advantaged medical savings accounts, and they’re on the rise in popularity. It's simple to account for the interest charges and fees that come your way if you're carrying a balance. Budgeting so you can …  (Not asked disrespectfully, but in frank and sincere surprise.). The purest would say everything must be on budget. Health Savings Accounts. The realist would say do what optimizes your work. ... A discussion subreddit for popular budgeting software You Need A Budget. Account Types: Budget vs. Tracking. So when deciding how much to budget in the future based on the averages, your average spent will be lower than what you actually spent. Just a little tweak I have for making it slightly easier to fill my Christmas category. I have made my budget categories and have my accounts (Linked) entered in nYNAB. This is to help keep track of your net worth, but I use Personal … Several of these are  savings accounts which are just that, savings accounts and will not be used for expenses. and along the way their savings account earned a penny of … By the way, you don't have to use any of the default spending categories that come with a new YNAB … Some expenses are fixed: utilities, rent, cable. It's just a quick shortcut that makes me have to think less, and one more step towards automating the budget. This is the only category I do this with, and I have a specific amount per month that I budget to the category in addition to this abnormal, divergent abuse of my budget. YMMV. I also have some separate American Express high interest savings accounts for long term savings; one for a roof fund, one for house repainting, one for vacations, etc. Truly, it's one of very few pleasures I've ever had as a result of taxation. Follow YNAB to get support and lots of great ideas on budgeting, https://www.youneedabudget.com/the-relationship-between-your-budget-your-accounts-its-complicated/. Khaki Network Yes, give it a category. There is no seperate savings account now for that goal. Money transferred from one to the other is instantaneous. For the 1 general account, I maintained a separate spreadsheet to keep the breakdown. Your eyes are drawn to it by design so you'll fix it. maybe twice, just to see what they looked like. The Savings Monetized (Sort of) If your average checking account balance is $6,000 (not at all unusual for a YNAB Budgeter following Rule One), you’ll earn $30 per year … I'll see how I feel when I get my next interest income. See image. This is why YNAB suggests just having a checking account and not having a savings account at all. They earn interest. Stash Beginner is just $1 a month and is … I even got a T5 tax form from my bank that had to be filed with the Canadian tax man because I crossed a reporting requirement threshold in 2019. Well, yes, it’s nice to get a little bit of interest on the money you’re saving anyway. For Natalie and Larry, YNAB helped bring them from living paycheck to paycheck to saving enough money to reach their dream of adopting a child (a big win!) I'm not saying follow my lead. nolesrule  I can live with that. Example, my BMO savings account had a .05 interest … Hi All - I decided to give interest earned a job of going towards Emergency Expenses - at least for now. I'm a little confused as how to categorize savings account interest. Yeah, I see what you're saying, in this case, I've kinda said "when it comes to interest expense, Christmas is my highest priority." For a very simplified example, let's say you get $500. YNAB also gives you the option of adding accounts for “Tracking” purposes only, like investment accounts or a mortgage. I suppose I could put it into TBB and then directly into Christmas. It can earn interest … If you want that to be Christmas, that's your call. All of them. But we’ve always dreamed of the day when we could cut that down to just one account. Once that goal category is fully funded (accomplished), I may open a new saving account, move the money from main savings account into new saving account, and treat the new acctount like a tracking account (a.k.a out of budget). 1. Follow YNAB to get support and lots of great ideas on budgeting. On the other hand, if I had a savings account that I added to and withdrew from, then I'd put the account on budget and mingle the money into categories on the budget. I am more discerning about priorities, and Christmas usually loses out at that time. As we are paying off our credit card, home equity or other loan debt, we are still accruing interest on the account. But Still...  shrug. As a True Expense, I'd expect that you already have a target amount in mind to spend for Christmas. Thanks for trying to rescue me from myself. I know that is the standard, and appropriate place for it to go, but I, at some point decided that (in addition to my normal monthly budget amount) I would add all my interest income into my Christmas category. Savings is really just deferred spending, so EVERYTHING in YNAB is savings. YNAB. They are not to be budgeted, they are savings accounts earning interest. Anyway, I suppose I could put it into TBB and then directly into Christmas. It can earn interest and I'll reconcile it whenever, doesn't really matter because I don't plan on using it until I die. I use an "Interest" payee to keep track of exactly how much I receive in interest. Hi. But Net Worth has always been nice to watch, the spending trends/proportions are moderately interesting, Toolkit's balance over time is interesting, and the Income vs. Purple Hammerhead Budget categories are for spending (or for savings... aka deferred spending). Some investment accounts, such as TFSAs, lack that functionality, but the system works well with your primary chequing/savings accounts… That one could be used for some sort of interest charge, such as a credit card finance charge. When you add an account in YNAB, you'll notice that there are two types of accounts to choose from: Budget Accounts and Tracking Accounts.It's important that they be set up as the correct account type, because their type will indicate how they behave in your budget.. A Budget Account … lol...  Ok, you've inspired me to at least take a look at the reports and see what I'm  missing. That’s why for the past 15 years at YNAB, we’ve recommended folks keep one checking and one savings account. This means all the dollars in your budget need jobs—it doesn’t matter if that job is immediate, a few months from now, or years down the road. Credit Card Interest & Fees. I have a bank checking account that my salary flows into. So how did YNAB become one of the best budgeting software, rivalling even Mint? You still have $500 in your groceries category, it's just now $450 in checking and $50 in savings account. Feel free to post any news, questions, budget strategies, tips & tricks and advice related to YNAB… That one could be used for some sort of interest charge, such as a credit card finance charge. It was launched in 2003, mainly as an app for the owner and his … My setup of YNAB has evolved and I have been successful in reorganizing existing accounts and categories in YNAB to support this evolution. nolesrule Yes, I've heard that argument, but you know how many times I've used the reports? Since interest varies, I target an amount that will consistently be there as part of my nominal plan (or template or goals if you use them). When you set up your YNAB account, you’ll be able to sync your accounts for automatic data import. Now, granted, inflowing direct to category wouldn't change anything. I need a little help understanding how to manage and budget for some of my savings. How do I account for them? I just transfer it to my savings account (which i don't have in YNAB… We keep one checking around 1-2k, ~5k in a same bank savings account making 1% interest, then have the rest of our bigger savings in a Ally bank savings making 2.2%. With Rule 1 in the YNAB Method, you'll Give Every Dollar a Job. So I actually just put it directly in there, instead of putting it into TBB and then possibly forgetting that I intended for it to move into Christmas spending. That's why savings accounts are Budget Accounts--you'll give each of your savings … You want to categorize that interest as Inflow: To Be Budgeted. They figured out how to make budgeting fun. I may spend some time trying to understand them, but at first glance, I haven't found a ton of value in them...  We'll see. Once that goal category is fully funded (accomplished), I may open a new saving account, move the money from main savings account into new saving account, and treat the new acctount like a tracking account (a.k.a out of budget). And another time or two when I was trying to hit "All Accounts" tab and actually hit "Reports". I always put anything over that amount toward whatever top-priority category I'd like to accelerate or increase. Thanks for your feedback. nolesrule Thanks. Personal Budgeting Software for … I don't use averages for this category. I guess I can see why you wouldn't bother using the reports; there's nothing particularly useful (or wonderful) in them. I have a goal (wish farm seed in community speak) to save up for a funeral in cash. Purple Hammerhead Budget categories are for spending (or for savings... aka deferred spending). This is fantastic if you like to maximize every penny you have earning interest. When I got paid, I would dutifully transfer money from my checking account to the appropriate savings accounts Then I would go over to the budget and make sure my savings categories all matched up with my savings accounts. All money coming into your budget should go to that category unless it's a refund or reimbursement. So for me, that makes no difference. You Need a Budget combines easy software with Four Simple Rules to help you quickly gain control of your money, get out of debt, and save more money faster! Is there a way of satisfying this so that that message goes away? If you are actually going to use YNAB now that you've migrated, since it appears you really weren't following the method in YNAB 4, you should read this until it clicks: https://www.youneedabudget.com/the-relationship-between-your-budget-your-accounts-its-complicated/. This skews your reporting, because it hides how much you actually spend on Christmas. If there was $435.19 in the new computer account… Yes, I do. I can see that this is going to be distracting because my eyes will keep coming back to this. Decide what you want to do with each dollar that comes into your bank accountbefore you spend it. Any help with this would be greatly appreciated. Stash. And I don't really use the reports, so I don't really care if it messes up the reports. Budgeting Your Savings. Bruce It also skews your averages calculated on the budget screen even if you don't look at reports. However our online banks and credit unions are more generous. Been waiting 5 years for the Stealing From the Future fix... YNAB book topics online: https://support.youneedabudget.com/r/q5w48j. Today we discuss how you can combine your physically separate savings accounts into one savings account, and the use YNAB (as it was intended!) Should this be a) Income to be Budgeted or b) Financial:Interest? Money will sit in those accounts … Yes, give it a category. Nolesrule is exactly right! I know that I'm in a rare group of people, feeling smug about having to report interest income and pay taxes on it. You can customize as much as you want to align with your own priorities and spending/savings. Also, here's an article on how that Interest & Fees category is intended to be used: docs.youneedabudget.com/article/140-credit-card-interest, If you still have questions, please don't hesitate to ask! I entered my interest as you suggested, using Interest as the payee, but it is telling me that I need to enter a category. Review: YNAB vs. Quicken YNAB. After you let that needlessly cryptic message sink in, really it's up to you. Before I used YNAB, my spending decisions were generally driven by the balance in my checking account… All of my savings accounts are on budget and the funds in them are budgeted to various categories. But what about interest? It sure would be nice if there was a keyboard shortcut / Quick-Budget button to put the contents of TBB into the selected category (or distribute them even across multiple selected categories). I just want to put interest back into my savings account. Like any statistic, take them with a grain of salt. One of my biggest joys with YNAB has been looking at the reports and seeing the steady growth, year over year, and one of those growth markers has been my annual interest income. In YNAB … Our interest rates have fallen a lot since the recession, and from what I've casually and personally observed, have yet to recover. YNAB revolves around 4 easy-to-understand rules: 1. 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