YNAB Budget With Me | Ernie’s Monthly Rollover

Introduction and Welcome

In this section, Ernie introduces himself and welcomes the viewers to the monthly rollover edition of "The Budget with Me" series. He mentions that he is joining from Eau Claire, Wisconsin in the United States.

Ernie's Introduction

• Ernie introduces himself as one of the teachers at YNAB.

• He greets the viewers and mentions that he likes to do these sessions on Zoom and YouTube.

• Ernie asks the viewers to check their budget and share how much money they have left in the eating out category.

Checking Eating Out Category Balance

In this section, Ernie asks the viewers to check their eating out category balance and shares his own balance.

Checking Eating Out Category Balance

• Ernie asks the viewers to quickly check their budget for how much money they have left in the eating out category.

• He shares that he has zero dollars left since last Tuesday when they ate out.

• Viewers start sharing their balances, ranging from zero dollars to forty dollars.

Viewer Balances and Getting Started

In this section, Ernie acknowledges some viewers who were present in his earlier live sessions. He then proceeds to start with the monthly rollover process.

Viewer Balances and Getting Started

• Ernie recognizes some viewers who were present in his previous live sessions.

• He mentions that there are more people with money left over than he anticipated, praising them for being good budgeters.

• Ernie confirms that everything is working fine and proceeds to start with the monthly rollover process.

Starting Monthly Rollover Process

In this section, Ernie explains that he will be transitioning his budget from July to August and shares a screen with his budget.

Starting Monthly Rollover Process

• Ernie mentions that he is doing the monthly rollover and shows his budget screen (not the actual budget, but similar).

• He explains that this is a tradition for him to tidy up the previous month's budget on the last day of every month.

• Ernie emphasizes that he wants to avoid surprises in category balances, account balances, and payment categories.

• He states that he will start with the account side for most of his rollover process.

Importing New Spending and Pending Transactions

In this section, Ernie explains how he imports new spending transactions and checks for pending transactions to avoid surprises in the next month.

Importing New Spending and Pending Transactions

• Ernie mentions that he usually imports new spending transactions early in the morning but doesn't have any to import at the moment.

• He adds that he manually checks individual bank accounts for any pending transactions.

• Ernie emphasizes adding pending transactions himself before the month rolls over to avoid overspending situations from unimported transactions.

• He shares an example of overspending caused by late imports on credit cards.

Purpose of Adding Pending Transactions

In this section, Ernie explains why he adds pending transactions before the month rolls over and how it helps with needed-for-spending targets.

Purpose of Adding Pending Transactions

• Ernie reiterates that adding pending transactions avoids surprises in category balances.

• He shares a personal example where adding pending transactions helps with needed-for-spending targets.

• Ernie explains how entering spending in July ensures correct calculations for future spending cycles without unnecessary prompts or overspending situations.

Conclusion

In this section, Ernie concludes the monthly rollover process and mentions that everything is marked as paid according to YNAB.

Conclusion

• Ernie concludes the monthly rollover process.

• He mentions that he has added pending transactions and marked them as paid according to YNAB.

• Ernie assures that there are no surprises in his budget for the next month.

Reconciling Accounts

The speaker discusses the process of reconciling accounts in YNAB and explains how to match transactions and account balances.

Reconciling Checking and Savings Accounts

• Reconciliation is done by matching transactions and keeping all information up to date.

• After adding pending transactions, the speaker reconciles each account, ensuring that the current balance matches the bank's balance.

• If there are no unclear transactions, the accounts are considered reconciled.

Handling Savings Accounts

• For savings accounts with minimal activity, there is usually no need to add transactions manually.

• However, if interest is posted between 9 PM and 9:30 PM, the speaker adds it manually as a transaction categorized as "Ready to Assign."

• This ensures that the cleared balance in YNAB matches the current balance at the bank.

Managing Cash Account

• The speaker has a cash account which allows them to be their own banker.

• They count the cash every Friday and compare it with the recorded balance in YNAB.

• If they match (e.g., $995), they reconcile the cash account.

Credit Card Accounts

The speaker discusses managing credit card accounts in YNAB and their approach to using multiple cards.

Importing Transactions for Credit Cards

• The speaker imports any pending transactions for their credit card accounts.

• They sign into Discover and Chase accounts but find no pending transactions.

Utilizing Direct Import Reconciliation Feature

• With direct import reconciliation feature enabled, the speaker can reconcile more frequently.

• By comparing recent bank balances with cleared balances in YNAB, they ensure accurate matching of transactions.

Finalizing Monthly Rollover

The speaker concludes the monthly rollover process by reconciling the mortgage account and updating tracking accounts.

Reconciling Mortgage Account

• The speaker updates the mortgage account balance after paying the mortgage on the first of each month.

• If they forget, they sign into their bank to check the current balance and reconcile accordingly.

Updating Tracking Accounts

• The speaker updates their tracking accounts (e.g., Roth IRA) at the end of each month.

• They don't monitor these accounts during the month, so it's a surprise to see how much money has been gained or lost.

This summary provides an overview of the main points discussed in the transcript. It is recommended to refer back to specific timestamps for more detailed information.

Monthly Rollover Process

In this section, the speaker discusses the process of monthly rollover in YNAB and the challenges faced when accessing accounts.

Accessing Accounts for Rollover

• The speaker mentions that they need Christy to be present to provide a one-time pin to access her accounts.

• They express uncertainty about the performance of the stock market.

Creating Adjustments and Updating Balances

• The speaker creates adjustments for account balances.

• They mention that new users may have new YNAB numbers during their first monthly rollover.

Tracking Accounts and Personal Preferences

• The speaker asks if anyone is experiencing their first monthly rollover.

• They state that tracking accounts are not necessary for everyone and can be overwhelming.

• The speaker enjoys monitoring retirement account balances but acknowledges that it may not be suitable for everyone.

Reconciling Accounts and Challenges

• The speaker reconciles their Roth account balance.

• They mention the challenge of reconciling accounts when Christy is away from home.

• Texting Christy for a one-time pin is mentioned as a potential annoyance.

Undoing Reconciliations

• The speaker accidentally reconciles an account twice but highlights the ability to undo reconciliations in YNAB.

Reviewing Net Worth and Category Balances

In this section, the speaker discusses reviewing net worth changes and category balances after reconciling accounts.

Checking Net Worth Changes

• After updating investment account balances, the speaker checks the change in net worth using the net worth report.

• They mention that it's more of an interesting observation rather than something actionable.

Assessing Category Balances

• Once all account changes are accounted for, the speaker moves on to reviewing category balances in the budget.

• They mention that tracking accounts do not impact category balances in their case.

• The speaker uses the focused views feature to ensure there is no overspending in categories.

Addressing Overspending

• The speaker emphasizes the importance of covering any overspent categories before the month rolls over to avoid surprises.

• Cash overspending results in a negative amount in the "Ready to Assign" category, while credit overspending may lead to increased credit card debt or insufficient funds for payment.

Adjusting Category Balances

• The speaker mentions occasionally making adjustments at the end of the month, especially if it ends on a Saturday.

• They cover expenses such as eating out, groceries, and gas money during this adjustment period.

Finalizing Monthly Rollover

In this section, the speaker concludes the monthly rollover process and prepares for the next month's budget.

Sharing Budget Information

• The speaker mentions that they will share their actual budget on Instagram for August 1st but were hesitant about sharing specific balances previously.

Releasing Holding Category Funds

• The speaker moves money from the holding category (current month's paycheck) to "Ready to Assign" category.

• They explain that this action clears out the holding category for August paychecks.

Summary of Monthly Rollover

• The July budget is considered ready with accurate account balances and updated net worth.

• No overspending is present in the budget.

• Money is ready to be assigned for August 1st.

• The speaker briefly checks category balances for potential adjustments but finds no immediate changes needed.

Reviewing Comments and Instagram Announcement

In this section, the speaker reviews comments and announces an upcoming Instagram session about budgeting.

Instagram Announcement

• The speaker mentions that there will be a live session on Instagram tomorrow at 7 PM Eastern Time.

• The session will focus on budgeting and the speaker will set up their camera to show their laptop.

Releasing August Money

This section discusses whether it is better to release August money on the last day of the month or wait until August 1st for budgeting purposes.

• The speaker recommends releasing August money either on the last day of the month or waiting until August 1st, depending on personal preference.

• Assigning money to August before the month ends allows for more budgeting opportunities.

• It is important not to end the month with any overspent categories as they do not carry over to the next month.

Reviewing Overspending and Making Adjustments

This section explains how to review overspending in different categories and make necessary adjustments.

• To track down overspending, check the "Underfunded" and "Overfunded" views in your budgeting tool.

• Overspent categories are highlighted in yellow, making them easy to identify.

• Scroll through each individual category to ensure there are no negative available balances.

• Pay back any overspent categories before starting a new month's budget to avoid surprises.

Living Off Last Month's Income

This section discusses living off last month's income and how it affects budgeting.

• The speaker explains that they are currently living off money earned in June while being paid in July.

• They hold their July paychecks unspent from July 1st until July 31st.

• At the end of July, they release the money in the holding category and assign it to the August budget.

• Being a month ahead allows for better budgeting and planning.

Deciding on Bank Accounts

This section addresses choosing bank accounts based on features and which accounts to prioritize.

• The speaker prefers a simple account structure with easy access to funds.

• They recommend having one savings account for simplicity but also consider high-yield savings accounts for optimizing interest rates.

• The speaker personally avoids opening new accounts just for better interest rates, as simplicity is more important to them.

Overfunding and Holding Category

This section explains how overfunding works when using a holding category for next month's money.

• With the speaker's workflow of holding current month's paychecks, overfunding is not an issue.

• If assigning current paychecks to the next month's budget, overfunding may occur.

• On August 1st, during the monthly rollover, check if any overfunding situations arise due to recalculations and assigned amounts.

Building Towards Being a Month Ahead

This section discusses gradually working towards being a month ahead in budgeting.

• It is possible to use a holding category even without being fully a month ahead.

• Start by aiming to be a month ahead with one bill or expense and gradually expand from there.

• Variable income earners can also utilize the holding category as paychecks come in unpredictably.

Changing Categories and Adjustments

This section addresses changing categories and making adjustments without affecting previous months' data.

• Categories can be changed without impacting previous months' data by merging old category data into new ones when necessary.

Monthly Rollover and Instagram Session

In this section, the speaker discusses the monthly rollover process and provides information about an upcoming Instagram session.

Monthly Rollover Workflow

• The speaker mentions that there are two groups of people when it comes to relying on filters for budgeting.

• The Instagram session tomorrow will not be posted on YouTube but will be saved on Instagram for later viewing.

• The speaker apologizes for not saving the previous session and assures that this time it will be saved.

• If unable to catch the session live, viewers can watch the recording later.

Handling Overfunded Categories

• The speaker is asked if they put any extra dollars or pennies in overfunded categories in "Ready to Assign" for the next month.

• They respond by saying that they don't do that. They prefer to be thorough at the end of the month and trust the budget when it rolls over.

Closing Accounts in YNAB

• A question is asked about closing accounts in YNAB when they are closed in real life.

• The speaker suggests closing accounts in YNAB as soon as they are closed in reality.

• Closed accounts will then appear under a "Closed" tab, out of sight but still accessible if needed.

Support and Resources

In this section, the speaker highlights the availability of support resources for users.

Fantastic Support Team

• The speaker encourages viewers to reach out if they have any questions or need assistance.

• There is a fantastic support team available to help with any queries related to YNAB.

Support Documents

• The support team has created helpful documents that cover various aspects of using YNAB throughout one's journey with the software.

• A link is provided to access these support documents.

Additional Support

• For those who are still confused or need further clarification, the speaker suggests visiting the support page.

• The support page contains information about end-of-month rollovers and covers topics such as positive amounts in categories, negative amounts, and assigned amounts.

The transcript is already in English.