Getting Started Finally

darkranger85darkranger85 Posts: 25Member
edited March 2013 in Desktop
Hey guys,

I'm just getting started for real and I'm kind of tweaking cause I don't really know what I should do.

It's well into the month and we just got an inheritance check for $10,000. Once all our bills are paid off we will have around 3000+ left over.

This might sound kind of dumb but I need a step by step on how I should get this going in my budget.

Also, how should I list paypal accounts? As their own accounts or should I have a paypal catagory?

Thanks guys!
Post edited by Unknown User on

Comments

  • T8ermommaT8ermomma Posts: 208Member
    I would enter your check as income for the month. The full amount, then enter each "bill" as a transaction as outgoing. Once you have all that done, you have to decide how you will use the remainder.

    Will it be part buffer (Full buffer?) Will it be emergency fund, rainy day fund, groceries and other spendables? What does it need to do for you??
  • T8ermommaT8ermomma Posts: 208Member
    Paypal?? That's a new one as I haven't seen it mentioned before. Do you have a regular income from paypal? Or do you have an amount sitting in there?

    If you have money sitting in there that you regularly use, then I would put it on account. using the current total as your starting balance.

    I don't leave money sitting in Paypal, but I do use it. I just put it in as a regular outgoing transaction from my checking account. So I don't even mention it on YNAB.

    If you just receive income via paypal and don't leave the money sit, but transfer it to your regular accounts, then again, I would just leave it off and just enter it as income to your account.
  • darkranger85darkranger85 Posts: 25Member
    Ok,

    One thing I'm worried about is that since it's already the 11th of the month, what do I do about next month?

    I was hoping to have the money all cleared to start before the first months pay period. So if I started putting our pay away for next month, we would be one paycheck behind. Of course I suppose I could put the lost money into next months from the check this month.

    I'm sorry if I seem kind of dumb but this kind of stuff just tweaks me out cause I'm so afraid I'm going to screw it up somehow.

    So tell me if I have this right:

    1. Tally up how much money we have in the house. Both in cash and bank accounts, and set that as the starting amount.
    Cash: I'm thinking about initially setting this as being in the account and then having a transaction taking it out of the account and into "spending cash" or whatever.
    2. Assign the money a "job" based around what I think our bills will be this month.
    3. Change the amount assigned to each bill based on new information?
  • Budget_NinjaBudget_Ninja Posts: 4,762Member, Beta Tester
    ...
    So tell me if I have this right:

    1. Tally up how much money we have in the house. Both in cash and bank accounts, and set that as the starting amount.
    Cash: I'm thinking about initially setting this as being in the account and then having a transaction taking it out of the account and into "spending cash" or whatever.
    2. Assign the money a "job" based around what I think our bills will be this month.
    3. Change the amount assigned to each bill based on new information?

    For item 2, you want to assign the money jobs until your available to budget = zero. If you still have more 'work' required and not enough money, then you'll have to wait for more money to come in. For this reason it might be a good idea to assign money to jobs in chronological order. If your not in danger of running out of money by the end of the month, then don't bother with the extra work of assigning dollars jobs in chronological order.
  • darkranger85darkranger85 Posts: 25Member
    Ok, I really need some hand holding cause my brain just doesn't want to wrap around this.

    I have 3 bank accounts linked to the budget. One has 227.44 in it. I took out two transactions from that to represent the money we have currently in our pockets in cash. My father hasn't come home yet so I have to add that in and then take out a transaction for that as well.

    The second one has 215.98 in it. This is the account that the 10,000 check is in but that wont clear till friday.

    I'm not sure yet what is in the third account but it isn't that much.

    Once the 10,000 clears we are paying off all of our back debt. My father is also getting a bonus this week of around 1600 which should be tomorrow or the next day.

    Once we pay off all the back debt and bills for this month the rest is going to carry us through this month while we put our paychecks toward next month and hopefully take out enough from the bonus and inheritance to make up for the amount from the paychecks we got last week into next months.

    Could someone give me an overview of how I would enter that into the program?

    I tried and my head got all screwed up and I ended up having our food and gas for the month budgeted on top of what will be left over from the checks after bills.

    This is my first time doing this and it's just boggling my mind. I'm sorry if I sound retarded lol.
  • Budget_NinjaBudget_Ninja Posts: 4,762Member, Beta Tester
    Ok, I really need some hand holding cause my brain just doesn't want to wrap around this.

    I have 3 bank accounts linked to the budget. One has 227.44 in it. I took out two transactions from that to represent the money we have currently in our pockets in cash. My father hasn't come home yet so I have to add that in and then take out a transaction for that as well.

    The second one has 215.98 in it. This is the account that the 10,000 check is in but that wont clear till friday.

    I'm not sure yet what is in the third account but it isn't that much.

    You'll first want to ensure your starting balances in the accounts match what the bank has (or had) on your start date. If you have pending transactions enter them into YNAB and leave them uncleared. Your cleared balance should equal your bank balance. Your transactions listed in the registry of YNAB should mirror the transactions you have at the bank with the exception being stuff like checks your wrote that haven't posted to your account. Your budget will only be as accurate as the data in the YNAB account registry.

    ...
    Once the 10,000 clears we are paying off all of our back debt. My father is also getting a bonus this week of around 1600 which should be tomorrow or the next day.

    Once we pay off all the back debt and bills for this month the rest is going to carry us through this month while we put our paychecks toward next month and hopefully take out enough from the bonus and inheritance to make up for the amount from the paychecks we got last week into next months.

    Could someone give me an overview of how I would enter that into the program?

    I tried and my head got all screwed up and I ended up having our food and gas for the month budgeted on top of what will be left over from the checks after bills.

    This is my first time doing this and it's just boggling my mind. I'm sorry if I sound retarded lol.

    Here is what I would do.
    1. Update the accounts to ensure they are accurate according to the bank.
    2. Budget what ever money you have 'Available to Budget' to those bills and expenses you have to pay next.
    3. Do the above until you run out of 'Available to Budget' money or are done budgeting.
    4. Take note of the amount left in the 'Available to Budget' as it sounds like you will have excess.
    5. Reopen the transaction for the 10,000 or the starting balance for that account and create a split transaction.
    6. In the above split transaction categorize one line as Income available in April and make the amount equal the current 'Available to Budget'
    7. In that same split transaction categorize the remainder as 'Income Available in March'.
    8. Send all subsequent income to <next month>

    There are alternative handling's for this. They include.
    • Leaving the excess unbudgeted and let if roll over to next month. Budget it to zero in April and each month moving forward budget to zero.
    • Budget the excess to the categories you want it go to in April but do it in March. The excess in the category will be available for you in April.
    • Put the excess in a buffer category in March. Then negative budget that category in April
  • darkranger85darkranger85 Posts: 25Member
    Thanks!

    I joined the introduction seminar last night as well and hopefully today I'll be able to get things going.

    Getting the android app later today too. :)
  • darkranger85darkranger85 Posts: 25Member
    Oh, the home study guide thing in the store.

    Is the dvd content downloadable after purchase?
  • ozzageozzage Posts: 29Member
    One has 227.44 in it. I took out two transactions from that to represent the money we have currently in our pockets in cash. My father hasn't come home yet so I have to add that in and then take out a transaction for that as well.

    If you create an on-budget Cash account, you can just enter the starting balance based on what's in your pocket right now, when you create the account.

    You don't need to create dummy transactions against accounts, which I suspect may put your accounts out of balance with the bank unless you really know what you're doing.
  • darkranger85darkranger85 Posts: 25Member
    ozzage wrote:
    One has 227.44 in it. I took out two transactions from that to represent the money we have currently in our pockets in cash. My father hasn't come home yet so I have to add that in and then take out a transaction for that as well.

    If you create an on-budget Cash account, you can just enter the starting balance based on what's in your pocket right now, when you create the account.

    You don't need to create dummy transactions against accounts, which I suspect may put your accounts out of balance with the bank unless you really know what you're doing.

    I also heard that some people simply consider cash as being already spent. So like when you withdraw money you would have it in a category like Wallet or something and just consider it gone.

    But I personally think that that doesn't track your money spending habits as well as the cash account would.
  • SuperboneSuperbone Posts: 1,456Member
    I also heard that some people simply consider cash as being already spent. So like when you withdraw money you would have it in a category like Wallet or something and just consider it gone.

    But I personally think that that doesn't track your money spending habits as well as the cash account would.

    It depends on how much cash you spend. I try to use my card for everything so I don't spend much cash. So I just put it in my misc category. If you use it often you should definitely be tracking it in a cash account.
  • darkranger85darkranger85 Posts: 25Member
    Ok, here is what I did.

    I made accounts for each of our cash wallets. I started them with what we have in our pockets and then allocated that to the budget under catagories like "Moms Pocket", "Dads Pocket" and so on.

    Does this sound right?

    No, seems wrong to me.

    I changed it so I just budgeted for what things we might buy with the pocket money instead of budgeting to a pocket catagory.
  • JoelJoel Posts: 9,783Member, Beta Tester, Beta Moderator
    Once the money is in my pocket, it is spent for my budget. I categorize it as whatever I will likely spend it on. If my budget was for multiple people in a household, I would absolutely do this. I spend very little with cash, and almost always try to use a card if possible.
  • darkranger85darkranger85 Posts: 25Member
    On the android app what category do you select for income and how do you transfer money between accounts?

    And now when I log on to YNAB on the computer its saying it can't sync with dropbox. How do I fix that?
  • gostumpygostumpy Posts: 432Member
    I agree with the cash being 'spent' when withdrawn... I cannot keep track accuratly where the cash goes from my wallet, be it $20 or $100... If I spend it all in one place, no problem, but quite often cash is a coffee here, donut there, sandwich, lots of little things...

    The only way I could make cash work is to accept it as gone when I enter it, so now it's up to me to make the cash in my wallet last as long as possible!
  • darkranger85darkranger85 Posts: 25Member
    The thing about it is I want to track where cash goes.

    However I plan on not using cash as much as possible now.
  • JoelJoel Posts: 9,783Member, Beta Tester, Beta Moderator
    The thing about it is I want to track where cash goes.

    However I plan on not using cash as much as possible now.

    Do you have a smartphone? I have a cash account (primarily for parking) and have found maintaining it with a smart phone to be easy.
  • darkranger85darkranger85 Posts: 25Member
    Yeah I already have the android app.
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