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Author: ishtarastarte Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Re: Got debt? Date: 4/11/2014 3:57 PM
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Let's say grocery spending ends up being 160.00, would you leave the extra 13.72 in groceries? If you did then it added in the next month's budgeted amount, I might tend to over spend since I see the money is there and forget part of it was from the previous month. Does that make sense?

Yes, your concern makes sense, but that's the beauty of YNAB - it's flexibility.

YNAB is not a "set it and forget it" budgeting thing. It's not "I'm going to budget the same amount every month in every category."

There are choices.

At the end of the month, I could sweep that $13.72 into a savings category.

I could let it roll over and budget less next month (so, budget only $160, bringing the total in the category back to $173.72).

I could let it roll over and build a bit of a cushion in that category to be used in Nov/Dec when I buy extra stuff.

I could do sort of a combination and allow say, up to a $50 cushion in the category and sweep anything over that into a savings category.

It's essentially an "envelope" budgeting system.

I have this stack of cash. I have these envelopes with "groceries" "gas" "snacks" "clothing" written on them.

If I need more in one, I have to make a choice about which other envelope to take it from. Likewise, if there's extra in one, I can figure out another, better place for it to be.

Ishtar
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