Jesse's recent blog post about the YNAB method made me think a bit harder about Rule 3 today. I'm not sure I get it properly. I understand how the program works, it's the concept I'm wrestling with. Maybe you can help.
If I leave the overspend red, then YNAB forces me to take the hit next month because there will be less income available to budget and it is likely that means you put less toward rainy days categories in the following month.
If I whack-a-mole and move money between categories in this month instead, that means I'm likely to be taking money from my rainy day funds this month instead and leaving more money to budget next month. This is what I have been doing because I wanted to get to a full buffer ASAP.
So which technique is right?
I suspect you will all say both. If so, how would you decide which method to use?
Also, in Jesse's post, the overspend was a significant proportion of the budget yet he said this was a normal month. Doesn't that mean that the buffer won't be full for next month or am I missing something?