Would it be possible for you to address your workaround regarding the "overdraft" account, but use the terms for this "paycheck parking" strategy so we can see how it might actually be applied? Should I: 1. ...I also assume a non-US style overdraft account whose balance can go negative. Navy Blue Wizard If they have no longer have a need to plan/use with overdraft funds, a single transaction in the Overdraft Limit account categorized to the Reserve category will "spend" those funds, taking them out of the budget. With the right mindset, it is obvious, but without that viewpoint, it will seem absolutely bonkers! Embrace your true expenses. For the US-style overdraft protection, you would have 3 accounts: checking (positive balance), overdraft protection (negative balance), and overdraft limit/ceiling (positive balance). Why would you want YNAB to not work the same way? For example. To enable, select View and check Show Running Balance in the web app. You buy ETFs and pay a 2 euro fee. Thanks very much. One of the few advantages to the new web-based YNAB (from my personal perspective, of course), is being able to customize your budget with little tweaks here and there. If you choose to set a date, YNAB will prompt you to budget so that you will have that amount available in that category by the given date. Should I: 1. You see exactly where your money is going, and that awareness will help you reign things in. Really, really sound advice and workable methodology. The interest rate is generally just a bit above mortgage rates. Look, one view holds the OD is debt, which of course it absolutely is, but that's not the only way to look at things. Offset accounts like you're describing are usually recommended by our team for Line of Credit accounts. Incidentally, the fact the "effective debt" can be different from the "real-world" debt is exactly how older versions of YNAB handled debt. Park categories in the negative account to reduce the real-world debt, while keeping separate track of the effective debt. They have a chequing account (TD) where they have accumulated some funds and have been budgeting these funds to an over draft reserve category in the budget, When the time came they moved that money to the chequing account (Scotia) which was in an over draft position. For example, if your bank shows $500 and your budget shows $850, record an adjustment (just like any other transaction) for $350 outgoing dollars. Adding Credit Cards & Debts. I'd like to have a simulator, if you will, in place before I'd ever actually engage in real money use. Payments make the balance go down, but interest makes it go up. This creates a transaction for the difference in which I type “Market Changes” in the memo. I don’t register this. Now your budget and bank agree: you have $500. I've tried YNAB over and over but never understood how to deal with our perpetual overdraft. I’m a simple girl and like to keep things simple, so once a month I reconcile the mortgage account. YNAB is a great tool to help you bring your finances under control. We recommend this method to hope that a user is able to work away from overdraft (and reduce spending where needed), instead of incorporating it. I mean, the bank goes out of its way to make spending with OD funds identical to spending with your own cash. Rules 1-4, no sweat. Finally I feel like I have a way to start digging myself out. Most HELOCs cannot be used as direct checking accounts so money must be transferred back to the working checking account to pay bills. Cornflower Blue Commander No doubt that would be nice. What I decided to do right now, is to just bear with the red mark on the TBB sign, as this is limited to just two accounts and easily trackable. However, that said, I am following up on another post regarding a "paycheck parking" strategy to which you linked this post. Obviously, you used to be able to handle and overdraft in pre-YNAB debt, and that was great, but I struggled to work out how to do this in new YNAB. I did a balance adjustment, when I went to my budget I saw that I was $0.88 cents into the red for next month, but when I took it out and entered a false $0.88 transaction things balanced, and no red ink. At the end of the month, your total balance is 2,105. It only makes sense to incorporate this into the plan for your cash (a.k.a., the budget). An account wasn't syncing right, the balance YNAB said didn't match my actual bank account – something was just off. Many people come to YNAB for the debt freedom, but they stay for the budgeting freedom. In Oz, overdrafts on checking accounts effectively act in the same way. Paying off the overdraft account -- getting a positive balance -- will happen well before the Reserve category is full. I'm using YNAB 4.3.857. Hi dakinemaui ! The Reserve category segregates the overdraft money that's not part of the normal spending plan. interest compound frequency and rate and maximum granted overdraft. Is there a way to clear it or do you just hide it? They are basically an Interest Only Mortgage that acts like a checking account. YNAB. General. No wonder I came unstuck and struggled to work it out. There’s no money to budget. Record a single transaction (categorized to the Reserve category) in that Overdraft account to zero out the account, close it, and then HIDE the Reserve category. dakinemaui Bingo! You can learn all about how to increase the time between when you earn money and when you spend it and get to see the budget live in action! Have I sussed it? As it turns out, overdraft users actually have an agreement with their bank that allows them to spend $X of cash that's outside of their main account. No, you do not make transactions, just budget entries. Ben K. Using the approach I outlined, you can absolutely follow all 4 rules. Though again, pay attention to nolesrule 's comment about the risk of the bank abruptly close or lower your HELOC which I believe is not a risk in the non-US offset accounts that are the origins of this thread. Reconciliation Balance Adjustment Stealing from the Future If you add income while To be Budgeted is negative in the current month or in any future month, YNAB will automatically apply that income to cover the overbudgeted amount. New to YNAB, still learning, all was going well but today my checking account balance is way off, by over $1000. I would do more research. When you hover over the name of one of your accounts, you'll see an edit icon. If it's yellow, your overspending happened on a credit card. 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