Budgeting steps for a new month
I LOVE the first day of the month! If you budget a month at a time, it’s time to get February done, if you haven’t already!
Here are the steps I take to budget for a new month, using YNAB:
1. Enter the deposit amount of my paycheck into YNAB – to be budgeted.
2. Balance my bank checking account against my YNAB checking account, to make sure YNAB is accurate in all transactions and current amount available.
3. Balance my credit card account against my YNAB credit card account – the same way I do with my checking account – to make sure YNAB is accurate in all transactions and amount due. I do this, because I use my credit card for all purchases throughout the month, but I track them the same as a checking account.
4. Ensure there are no categories in my budget with negative amounts available. If there are, cover them with money from another category. This assures I’m starting with an accurate amount of money available in all categories.
5. Review my spending plan for the month and make any necessary changes.
6. Budget all money from “to be budgeted” into my various categories, according to my spending plan – this includes my savings categories!
7. Pay all bills for the month (except those that are set up for auto pay. Double check to make sure those categories are all funded, so there are no issues with auto pay!)
8. Make any necessary transfers between bank accounts (checking & saving).
I’ve been budgeting for several years, so this only takes me about half an hour. It may take you longer in the beginning, until you get your system down to a science that works for you, but if it feels time consuming now, trust me – that will change!
Questions about the budgeting process? Want tips for budgeting for less than a month? Have useful budgeting tips? Let’s chat! firstname.lastname@example.org