Tardigrade Yes, this was what I was going to say, just move the money to the category when you use it. Only tried YNAB, not a regular user, but here's my take. Are those funds strictly for apocalyptic dangers or are they a "Loss of Income" safeguard? It only becomes an issue if you want to use the money in the tracking account for more than one purpose. Navy Blue Foal Other than my very first post here lamenting having to move to YNAB, or not liking the lack of better reimbursement handling, or not liking the red arrow's being gone, or not liking the odd implantation of pacing on category balance by date goals, or not liking the single-month view, and probably some others, you're spot on in your characterization of my views. Jobless dollars are a weak link. Edited to add: If you have a shorter-term savings horizon, plan to pull the funds out within a few years, and the funds are invested in guaranteed investments like a HISA (high-interest savings account), then that type of TFSA investment won't cause you trouble being an on-budget account. But I'm not going to sugarcoat its idiosyncrasies. Less so since reducing how much is kept on budget. I'd gain nothing from doing that. nolesrule That is a fair point, but I would have to ask how often are you having those "emergencies" and what are you counting as one. You're trying to budget-by-account in a budget-by-category software. But between YNAB’s own materials, and Nick True becoming the unofficial official material, the idea that savings shouldn’t be a tracking account gets lost. Matthew Sure. Unexpected Expenses (… Turns out it's not important. Do You Need A Budget? With so many accounts to manage, no wonder their blog is "Busy Budgeter". I stopped seeing my emergency fund as "emergency fund" (unusual or unlikely happenstance) and began seeing it as a Life Happens fund (inevitable expenses with unknown timing). If you've made a transfer between real-world accounts and both of those accounts are set up in YNAB, you'll be making a transfer in the app.. It doesn't even have to be an emergency to make changes. It’s like having a built-in emergency fund that you just keep in your checking account. Just need a second facings account. You can also get that information by instead of directly using the emergency fund category, just move the money to the category it was needed in, and look at your average spending to see if you are budgeting enough. If you think YNAB has arithmetic errors, you should probably stop using it and find something that doesn't have math errors. I transfer $1,000 from checking into savings to save as my emergency fund. I'm facing some confusion as I try and reconcile my budget recently. Navy Blue Foal The same applies to on-budget accounts, so that’s pretty poor reasoning. But ive found reducing on budget funds (by moving emergency savings off budget) has greatly reduced both the amount and frequency of this. Habanero Salsa Ya, you said that, but did you mean it? The closest thing is that I'll order a dress in multiple colors and/or sizes with the hope of actually keeping 1, so that clothing is overspent for the period between the order and the return but the actual item that I keep is well within the category available. The reason many seasoned users don't recommend more than a month out is that when your plans change, instead of only having to change one month, you have to change 3-6 months worth of budget entries. Then make a line that says ‘emergency savings’ and budget it there. I've found a way to manage these by giving it less to mess up with. The point is, the balance in my accounts is not related in any way to the balance of my categories. Easy peasy. I am going to say something very controversial for the ynab community and say no it's not "wrong" if that's what works best for you. I have done it that way in the past as well. HAHAHAHAHAHAHA. Navy Blue Foal A. A financial emergency is something unexpected that happens that has not been planned for elsewhere in the budget and needs to be dealt with immediately. Navy Blue Foal We recommend including your savings accounts in your budget, because leaving them off-budget means you aren't budgeting them. But saying it's for car repair/replacement, and job loss, and medical deductible, etc., tends to make us really underestimate our need for savings. Foal well, generally speaking, the electric bill ’ s pretty poor reasoning try and my... Very few things change for us to track your emergency fund category or sits budget! Sending account is an arbitrary line in the budgeted column, you should n't a! 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