I need help with entering some transactions related to my emergency fund.
1) I have two accounts, one checking and one savings, both on budget.
2) In my savings account, I have $2000 set aside as an emergency fund.
3) I have a main category of savings with 4 subcategories on my budget, one being emergency fund.
Here is what happened:
1) Yesterday, I had to have some dental work done that costs $306. I would like to use funds from my emergency fund to pay for this, since that is what I set that money aside for.
2) I payed with my debit card which brought my checking account balance down $306.
3) I then went and transfered money from my savings account into my checking account for $306.
1) I need to enter a transfer transaction in YNAB from savings to checking - DONE
2) I need to enter a transaction in my checking account for the payment. What category do I put this in? Do I categorize this payment as emergency fund so it deducts the money straight from there? Or I do I categorize it as doctor/dentist and then enter a negative budget of 306 on my emergency fund and budget 306 on my doctor/dentist category?
I can see doing it both ways, so I wanted to get some help from the experts.