Which means that you have to carry a ton of cash. Do you have non-monthly expenses coming up? It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered. It took a while for the whole concept of YNAB to click for me, even though I was already using an "envelope" based system in my manual spreadsheet. The free version of Goodbudget includes 10 e-envelopes, and works with one account for up to two devices. Anyhow, I need to transition my envelopes into YNAB categories. Also, how do I add money to the envelope/category each pay period? Repeat each time you get paid. In the web app, click the question mark near the bottom right of your budget, select Send a Message, and you'll see the option to chat if a member of our Support team is available. When you start to budget, you have bank accounts that you add to YNAB. i am getting confused. Then, you only use the available cash for that category – and when the envelope is empty, you can’t spend any more in that category. YNAB software makes sure that every dollar has a purpose. in English Literature from Indiana University–Purdue University Indianapolis, and lives with her husband and children in Indianapolis. For example, let's say that in YNAB I have $600 in Groceries, $300 in House supplies and $90 for eating out. Your categories are virtual envelopes. Also known as the envelope system, zero-based budgeting requires you to “give every dollar a purpose” so that every corner of your budget is accounted for. Well, between paying rent and other essential bills with that first paycheck, we didn’t have $300 left. :-), Keto TN Beer Cigar LOL. And don’t even get me started with how we worked it out (by putting money back in the bank, usually) when we decided to buy something online. For unpredictable expenses like gifts and clothing that may come up at any time, I build up cash in the envelope. That pile of money is what you use to fill your envelopes, and it appears in the "To Be Budgeted" (TBB) at the top. How do I do this? Swiping a card doesn’t have the same effect. Thanks for sharing! But I might make the software available if anyone’s interested. I have a paper that has my monthly budget on it and I carry it around with me in my wallet. So I just withdraw the cash from the ATM, record a split transaction in YNAB and separate the cash in my wallet using the division or just paper, a-la Envelope System. Or he had to swipe the debit card, leaving our budget unbalanced for the month. Side note: I’ve used Ally for years now, and haven’t had any reason/desire to look elsewhere. You start out by budgeting with the money you currently have in … And one of the goals is to break that cycle, so that you are neither living paycheck to paycheck, not budgeting paycheck to paycheck. I also add a savings account to track my true savings (not my bank savings, but rather, the savings that is left after all of my budgeted spending and forecasted income). I may still use a credit card and “recycle” the cash in my allowance the following week, requiring me to withdraw less money. At one, I tried Dave Ramsey’s envelope system. William, can you say a bit more about how the budget sub-account and the savings works? With YNAB you have a monthly income amount but you don’t fill the envelopes. This is because YNAB doesn’t analyze your spending habits, but rather gives you an opportunity to change the way you see your finances and how you spend your hard-earned money. They are no longer all around and, if I need one, I know exactly where it is. (And risk being murdered by the people behind you?) And you can’t withdraw $243 directly from the ATM. I use Ally Bank and did exactly that, creating separate checking accounts for envelopes. I can’t speak to that at all, and can only say from personal experience that their checkings, savings, and bill-pay services work well. Opinions expressed here are author's alone, not those of the bank, credit card issuer, or other advertiser, and have not been reviewed, approved or otherwise endorsed by the advertiser. Mint is a little more fluid. If so, obviously you could go through each category and set a goal for 1/2 the amount you need to budget per month. Unless you are very, very good at planning ahead and would never be without the cash you need at the time you need it, envelope budgeting can be annoying in this way. The trick is YNAB takes the envelope concept further and doesn't let you put money in the envelopes until you actually have it. Since YNAB is online, you can easily sync with your mobile device. Fortunately, two of the best budget software programs available retain the simplicity of the traditional envelope budget system while, at the same time, making it relevant to the cashless age. Of course, that only works if you have the money available in your TBB. I know that budgeting is one of the hardest things to get right with your money. That’s why you are only supposed to budget with money you have today as opposed to what you expect to receive this month. The transition from envelope system is confusing for my poor little brain. (Which, by the way, will leave you with weird amounts of change that you probably don’t have.) Then record the split transaction in YNAB, … Super-Strict Budgeting Isn’t Always Helpful, 3. Enter your transactions in the account register, giving them the appropriate category. 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