I'm just started using the trial of YNAB and having read the help that comes with it I'm very keen to get my head around the rules and get in control of our finances.
We already budget monthly based on categories, and we're good at only spending up to what we earn each month. However we're starting off from a position in large overdraft.
We get paid towards the end of the month and I was planning to use YNAB as follows:
- Put in my budget figures for next month based on our current budget plans
- Add in some budget categories to start chipping away at the overdraft
- Add our salary payments this month as 'income available next month' as this is pretty much how we already treat them
I'm assuming that this way we'll start reducing the overdraft while sticking to the budget etc. My concern is that doing this seems to imply in the software that we have a buffer, which in reality I guess we dont?