Budgeting Your Savings
With Rule 1 in the YNAB Method, you'll Give Every Dollar a Job. 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. That's why savings accounts are Budget Accounts--you'll give each of your savings dollars a job, too.
What are you saving for?
Imagine you've got a savings account with $4,200 in it. Maybe you've never even thought about how that money might be used. It's just savings, right? But you're a budgeter now, so this is the time!
After some reflection, you decide that money is really for your new bike, for vacation, and for some part-time classes you're taking. Perfect.
- Add your savings account.
- In your budget, make sure you have categories for the jobs those savings dollars are waiting to do. In this case, your bike, your vacation, and school.
- Budget all the money in your savings account to those categories you just set up.
That's it! Your money is protected and waiting for just the right moment. You don't have to worry about spending your savings--you have dedicated categories for your savings, so that money is won't accidentally be spent on groceries. You'll be ready for that new bike when it's ready for you!
Want to boost your savings even more?
Add a Goal to your savings categories. Goals help you focus your savings even more, by helping you reach target amounts or due dates.
Transferring money to a savings account?
You'll notice making a transfer from a checking account to a savings account (one budget account to another) doesn't require a category or change anything in your budget. That's because those dollars already have jobs.
If you'd like to increase a savings category by the amount of the transfer, move money from To be Budgeted or another category—giving those dollars a new job!