![]() This is desirable because the “Net Income” line in YNAB reporting is misleading (IMHO). In the ‘Budget’ view, create a “Buffer” category group and add a single budget line called “Cash Buffer”. The funds available in the buffer are any unallocated dollars that are sitting in a tracked budget account (such as a checking account).Īlso, since unallocated money lives in the buffer account, any cash on hand at the creation of a YNAB account is ‘buffer’ money. In YNAB methodology, “buffering your expenses” means to have at least one month’s worth of cash on hand, so that each new month’s expenses get paid from last month’s income.Īs I use it here, a “buffer” is a budget category that allows moving one month’s worth of income into ‘To Be Budgeted’ so that monthly budgets can be establish in advance of income. In order to do monthly style budgeting in YNAB, a “buffer” needs to be created. I won’t cover #3 in this post, but I’ve found a good way to solve #1 and #2 through some budget line-item configuration and the use of a “buffer”.
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