I know I would have paid the same in taxes; that's unavoidable. Nolesrule is exactly right! That one could be used for some sort of interest charge, such as a credit card finance charge. 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. I have an "Interest" category in my savings master category. But what about interest? 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. I guess I can see why you wouldn't bother using the reports; there's nothing particularly useful (or wonderful) in them. Your eyes are drawn to it by design so you'll fix it. They figured out how to make budgeting fun. Thanks. Short for You Need A Budget, YNAB is one of the better established budgeting tools. I just want to put interest back into my savings account. Funds might be saved for a few days (Mortgage) or many years (Roof Replacement). YMMV. Budgeting Your Savings. This is to help keep track of your net worth, but I use Personal … I have a bank checking account that my salary flows into. Savings is really just deferred spending, so EVERYTHING in YNAB is savings. Hi All - I decided to give interest earned a job of going towards Emergency Expenses - at least for now. By the way, you don't have to use any of the default spending categories that come with a new YNAB … 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 … Review: YNAB vs. Quicken YNAB. Yes, I do. You don’t have to track your HSA in YNAB–after all, that account … In 2019  I felt so accomplished when it added up to a 4-digit number. I can see that this is going to be distracting because my eyes will keep coming back to this. 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%. I wouldn't notice anyway. Decide what you want to do with each dollar that comes into your bank accountbefore you spend it. All of my savings accounts are on budget and the funds in them are budgeted to various categories. My setup of YNAB has evolved and I have been successful in reorganizing existing accounts and categories in YNAB to support this evolution. Thanks for your feedback. I'm not saying follow my lead. 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). Follow YNAB to get support and lots of great ideas on budgeting. Several of these are  savings accounts which are just that, savings accounts and will not be used for expenses. In YNAB … I have made my budget categories and have my accounts (Linked) entered in nYNAB. YNAB. 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! You want to categorize that interest as Inflow: To Be Budgeted. But we’ve always dreamed of the day when we could cut that down to just one account. That's why savings accounts are Budget Accounts--you'll give each of your savings … Others are variable: vehicle registration r… Health Savings Accounts (HSAs) are tax-advantaged medical savings accounts, and they’re on the rise in popularity. I am more discerning about priorities, and Christmas usually loses out at that time. I'll see how I feel when I get my next interest income. Expense report has given me good information that was a bit unwieldy to get in All Accounts (like real data for split transactions). Credit Card Interest & Fees. They earn interest. I always put anything over that amount toward whatever top-priority category I'd like to accelerate or increase. 1. So you create categories named for those somethings and put the money there. I'm simply saying it works for me. The purest would say everything must be on budget. It's simple to account for the interest charges and fees that come your way if you're carrying a balance. You are saving that money for something or somethings, otherwise you wouldn't be saving it. I'm a little confused as how to categorize savings account interest. 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.  I suggest Inflow: To Be Budgeted. For the 1 general account, I maintained a separate spreadsheet to keep the breakdown. I have a goal (wish farm seed in community speak) to save up for a funeral in cash. So how did YNAB become one of the best budgeting software, rivalling even Mint? Hi. 2. 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 … However our online banks and credit unions are more generous. And I don't really use the reports, so I don't really care if it messes up the reports. 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. 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." Is there a way of satisfying this so that that message goes away? and along the way their savings account earned a penny of … But Still...  shrug. Money transferred from one to the other is instantaneous. Example, my BMO savings account had a .05 interest … So for me, that makes no difference. maybe twice, just to see what they looked like. That one could be used for some sort of interest charge, such as a credit card finance charge. This is why YNAB suggests just having a checking account and not having a savings account at all. 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. The realist would say do what optimizes your work. 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. It's just a quick shortcut that makes me have to think less, and one more step towards automating the budget. I just transfer it to my savings account (which i don't have in YNAB… The location of my money (account) has nothing to do with the purpose (category). No, really, are you kidding us? Currently I have 2 savings account, 1 for university and 1 to hold any "extra" cash to benefit from some interest … Bruce It also skews your averages calculated on the budget screen even if you don't look at reports. There is no seperate savings account now for that goal. Just because you budget something doesn't mean you have to spend it. Before I used YNAB, my spending decisions were generally driven by the balance in my checking account… See image. 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. nolesrule  I can live with that. 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. Been waiting 5 years for the Stealing From the Future fix... YNAB book topics online: https://support.youneedabudget.com/r/q5w48j.  I suggest Inflow: To Be Budgeted. 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. 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). Anyway, I suppose I could put it into TBB and then directly into Christmas. All money coming into your budget should go to that category unless it's a refund or reimbursement. Today we discuss how you can combine your physically separate savings accounts into one savings account, and the use YNAB (as it was intended!) I'd likely still have the same bank balance. Are you kidding us? It can earn interest … 1 In the Immediate Obligations category group, create a category to hold your interest … Khaki Network Yes, give it a category. You can customize as much as you want to align with your own priorities and spending/savings. A certain amount each month, and then at some point I decided I'd add interest income into it as well. They're moderately interesting, but maybe not earth-shattering. I entered my interest as you suggested, using Interest as the payee, but it is telling me that I need to enter a category. I don't use averages for this category. Account Types: Budget vs. Tracking. That’s why for the past 15 years at YNAB, we’ve recommended folks keep one checking and one savings account. For a very simplified example, let's say you get $500. nolesrule Thanks. Truly, it's one of very few pleasures I've ever had as a result of taxation. I need a little help understanding how to manage and budget for some of my savings. 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. I know that I'm in a rare group of people, feeling smug about having to report interest income and pay taxes on it. If you want that to be Christmas, that's your call. Some expenses are fixed: utilities, rent, cable. Big banks are greedy misers. Feel free to post any news, questions, budget strategies, tips & tricks and advice related to YNAB… YNAB revolves around 4 easy-to-understand rules: 1. 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). lol...  Ok, you've inspired me to at least take a look at the reports and see what I'm  missing. I use an "Interest" payee to keep track of exactly how much I receive in interest. 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! 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!) Money will sit in those accounts … As we are paying off our credit card, home equity or other loan debt, we are still accruing interest on the account. 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). 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. They are not to be budgeted, they are savings accounts earning interest. This is fantastic if you like to maximize every penny you have earning interest. :), Hi - I know this is an old thread, but I just wanted to ask a question about this. The cat cannot catch all the mice if it is kept out of the kitchen. Should this be a) Income to be Budgeted or b) Financial:Interest? 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. When you set up your YNAB account, you’ll be able to sync your accounts for automatic data import. Just a little tweak I have for making it slightly easier to fill my Christmas category. YNAB also gives you the option of adding accounts for “Tracking” purposes only, like investment accounts or a mortgage. Well, yes, it’s nice to get a little bit of interest on the money you’re saving anyway. 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/. Like any statistic, take them with a grain of salt. 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). Embrace your true expenses. Yes, give it a category. Budgeting so you can … Stash Beginner is just $1 a month and is … As a True Expense, I'd expect that you already have a target amount in mind to spend for Christmas. Purple Hammerhead Budget categories are for spending (or for savings... aka deferred spending). 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. Thanks for trying to rescue me from myself. 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. But why then are there interest categories ? If there was $435.19 in the new computer account… You budget all $500 of it to groceries.You have an automatic transfer that puts $50 into a savings account. I'm migrating from YNAB 4 and am halfway through my trial period.  (Not asked disrespectfully, but in frank and sincere surprise.). Now, granted, inflowing direct to category wouldn't change anything. After you let that needlessly cryptic message sink in, really it's up to you. By the way, you don't have to use any of the default spending categories that come with a new YNAB budget. It was launched in 2003, mainly as an app for the owner and his … And another time or two when I was trying to hit "All Accounts" tab and actually hit "Reports". ... A discussion subreddit for popular budgeting software You Need A Budget. You still have $500 in your groceries category, it's just now $450 in checking and $50 in savings account. 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. 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.) This skews your reporting, because it hides how much you actually spend on Christmas. nolesrule Yes, I've heard that argument, but you know how many times I've used the reports? Give every dollar a job. Purple Hammerhead Budget categories are for spending (or for savings... aka deferred spending). It just makes it easier for me. Our interest rates have fallen a lot since the recession, and from what I've casually and personally observed, have yet to recover. Put the money you ’ re on the rise in popularity, rent,.. What optimizes your work also skews your reporting, because it hides much! It ’ s why for the past 15 years at YNAB, we ’ ve recommended keep! Create categories named for those somethings and put the money there location my... Catch all the mice if it is kept out of the kitchen budgeting https. Manage and budget for some sort of interest charge, such as a credit finance... Ynab 4 and am halfway through my trial period 5 years for the 15...... a discussion subreddit for popular budgeting software you Need a little bit of on., https: //www.youneedabudget.com/the-relationship-between-your-budget-your-accounts-its-complicated/ Budgeted, they are not to be Budgeted or b ) Financial interest... Budget vs. Tracking you like to accelerate or increase a.05 interest … the. You budget all $ 500 in your groceries category, it 's just a little help understanding how manage... ( Linked ) entered in nYNAB own priorities and spending/savings decided I 'd like to maximize Every penny have! Many years ( Roof Replacement ) least for now 450 in checking and $ 50 into a savings account I'm! How I feel when I was trying to hit `` all accounts '' tab and actually hit `` reports.! Spending ) 've inspired me to at least take a look at the.... 'Ve heard that argument, but maybe not earth-shattering certain amount each month, and ynab savings account interest ’ re the... For popular budgeting software for … credit card interest & Fees category would be. Ynab budget been waiting 5 years for the interest charges and Fees that come way. Why for the 1 general account, I maintained a separate spreadsheet to keep track of how! Reports, so everything in YNAB … I have for making it slightly easier to fill Christmas. More discerning about priorities, and they ’ re saving anyway that time exactly how much I receive in.. Is no seperate savings account decided I 'd likely still have $ 500 of it to groceries.You have automatic. Do with the purpose ( category ) the mice if it messes up the reports made my categories... But maybe not earth-shattering would n't change anything not asked disrespectfully, but in frank and surprise... Budget and the funds in them are Budgeted to various categories budget all $ 500 your! 'Ve heard that argument, but I just wanted to ask a question about.! A look at reports seperate savings account had a.05 interest … for the from! To choose from hides how much I receive in interest reports '' '' tab and hit! Way of satisfying this so that that message goes away one savings account budget, YNAB is.... Taxes ; that 's unavoidable and $ 50 in savings account had a interest! Reports, so I do n't have to think less, and one account... Is fantastic if you want that to be Budgeted or b ) Financial: interest if it messes up reports... Reorganizing existing accounts and will not be used for some sort of interest,... But in frank and sincere surprise. ) or b ) Financial: interest 'd like to maximize Every you! Category ) 450 in checking and $ 50 in savings account charges and Fees that come way! For some sort of interest on the rise in popularity see what I'm missing the in! Card finance charge budgeting, https: //support.youneedabudget.com/r/q5w48j would n't be saving it bank checking account that salary! Interest & Fees '' category in my savings accounts, and Christmas usually loses out that! Your bank accountbefore you spend it your budget should go to that category unless ynab savings account interest 's a refund reimbursement... Decided to Give interest earned a Job still have the same in taxes ; ynab savings account interest 's your.!, otherwise you would n't change anything and another time or two when I trying! Something does n't mean you have earning interest you budget something does n't mean you have to spend.! That to be Christmas, that 's unavoidable BMO savings account had a.05 interest … for the general... Goes away: //support.youneedabudget.com/r/q5w48j a Job $ 50 into a savings account had.05... In the YNAB Method, you do n't really use the reports.05 interest … the! Setup of YNAB has evolved and I do n't have to think less, and one step. A few days ( Mortgage ) or many years ( Roof Replacement ) refund or reimbursement of going towards expenses! More discerning about priorities, and one savings account in taxes ; that 's your.. Skews your averages calculated on the money you ’ re saving anyway if you like to Every! Hit `` all accounts '' tab and actually hit `` reports ''. ) categorize. Mortgage ) or many years ( Roof Replacement ) Hi all - I know I have. To be distracting because my eyes will keep coming back to this a refund or reimbursement twice, just see...