Create YNAB accounts for each of your accounts (checking, savings, visa, etc): If using YNAB Pro : Create accounts on the Register by clicking the “+” tab If using YNAB Basic : Create accounts on the “Overview” sheet.
To make the starting balance of an account available to be budgeted right away, categorize its starting balance transaction in the Register as “Income: Supplemental” (just called “Supplemental” in YNAB Basic).
Go the Budget window and tweak/customize the Categories to fit your specific situation. (We recommend leaving the “buffer” category for now. You’ll need it later) If using YNAB Pro : Right-click on categories to add/edit/delete categories If using YNAB Basic : Click in the category column to add/edit/delete categories
The large “Available” amount (at the top of the Budget window right under the current month) should be the total of the balances that you entered as Supplemental income in step #2. Using this “Available” number as a reference, start budgeting amounts to every Category that needs to be funded before you get paid again.
Do step #4 until the “Available” amount at the top of the page reaches zero ($0.00). It is important that this number is never negative!
If you have any money left after step #4 then just assign it to a Category named “Buffer” to help save up a month’s worth of income so that you can fully utilize the YNAB methodology with the software.
As you spend money, record every transaction in the register, categorizing it as appropriate. This automatically puts the total you spent under the Outflow column in the Budget window. This applies whether you wrote a check, transferred electronically, debit card or cash. If it’s categorized, it’s all the same in your budget.
When new income arrives, repeat steps 2 through 6 and keep doing #7.
Once you have saved up a full “Buffer” (1 month’s worth of normal expenses) then you can start entering your income as Primary which tags it as available for the next month.
And most important of all. Stick to your plan or this whole exercise is just a waste of your time. You are the master of the budget and once in place, the budget is the master of your money. Follow that and you’ll win.
