How to Handle Refunds and Returns in Your YNAB Spending Plan

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How to Handle Refunds and Returns in YNAB

Make sure your spending plan reflects money that’s coming back—without confusion or frustration.

Why Tracking Refunds and Returns Matters

Returns and refunds are part of life. Whether it’s a pair of shoes that didn’t fit, a subscription you canceled, or a double charge at the grocery store, the way you record that money in YNAB impacts the accuracy of your spending plan.

Many users new to YNAB struggle to reflect those changes clearly. If you simply ignore the refund or treat it as new income, your categories and reports can quickly fall out of sync with reality.

Fortunately, YNAB gives you simple tools to handle refunds cleanly—whether they’re credited back to your card, given as store credit, or still pending.

The Most Important Principle: Mirror Reality

YNAB isn’t about perfection. It’s about clarity. Your job as a YNAB user is to represent what’s actually happening with your money. That means if you return something and receive a refund, your spending plan should reflect the correction.

You’re not getting new money—you’re getting money back. That distinction helps you record the refund correctly and make informed decisions with your updated category balances.

Scenario 1: You Return Something and Get a Refund Back to the Card

Let’s say you buy a $100 coat from a clothing store, categorize the purchase as “Clothing,” and then decide to return it. The store refunds the amount directly to your credit card.

In YNAB, here’s what you do:

  1. Enter a transaction in your credit card account for -$100 (a negative outflow).
  2. Categorize it to “Clothing”—the same category as the original purchase.
  3. That refund will raise the balance in your Clothing category, giving you the ability to reuse those dollars or leave them as a cushion.

This method ensures that your spending report is accurate and that the original purchase is essentially reversed.

Scenario 2: You Return Something, But It Was Already Paid Off

This one confuses many users.

Let’s say you paid off your credit card in full, and now you get a refund. If you follow the same steps above, YNAB will still credit the refund to the spending category—but your credit card account now has a positive balance.

That’s okay.

You have two choices:

  • Leave the positive balance until your next card payment
  • Transfer the extra amount back to your checking account (and record the inflow with no category)

The key is to make sure your categories reflect the corrected purchase—and to trust that the dollars are still accounted for in your overall plan.

Scenario 3: You Receive Cash or a Gift Card Instead of a Card Refund

If a store gives you a cash refund, record the transaction in the account where the money actually went. For example, if they hand you $25 cash:

  1. Record an inflow of $25 in your “Cash” account.
  2. Categorize it to the original spending category.

If you receive store credit or a gift card, things get more nuanced. Technically, the money is no longer part of your YNAB plan—it’s stuck in a gift card.

Some users create a separate tracking account for gift cards. Others treat it as “money spent” and don’t worry about the return value unless they use it. Either way, the goal is consistency. Decide how you’ll treat gift cards in your plan and stick with it.

Scenario 4: You Return Something But Don’t Get Refunded Yet

If you’ve initiated a return but haven’t received the refund yet, don’t record anything in YNAB. Wait until the refund hits your account.

You can add a memo to the original transaction noting that a return is in progress, but you don’t want to inflate your plan with dollars that haven’t actually arrived.

YNAB’s philosophy is to only budget money that you physically have—not money that might be coming.

How Refunds Affect Your Spending Reports

When handled properly, refunds reduce the total amount spent in the category. So if you spent $400 on “Clothing” this month but returned a $100 coat, your report will show $300 of actual spending.

This makes your monthly reflections much more meaningful and helps you avoid thinking you overspent when you didn’t.

You can double-check your totals in the “Spending by Category” section of YNAB’s Reports tab.

What Not to Do with Refunds in YNAB

  • Don’t categorize refunds as “Inflow: Ready to Assign.” This makes it look like new income and inflates your Ready to Assign balance incorrectly.
  • Don’t skip recording the refund. You’ll forget where the money came from and lose track of what happened in the category.
  • Don’t recategorize the original expense. Let it stand. Add the refund as a separate transaction to maintain an accurate history.

As YNAB emphasizes, your goal is not perfection—it’s awareness.

Real-Life Coaching Example: The Grocery Refund

A client named Lisa recently messaged in a panic. Her grocery store charged her twice for the same $120 purchase. She caught the error two days later, and the store issued a refund.

Lisa had already categorized the first transaction to “Groceries” and wasn’t sure what to do with the second.

We walked her through the process:

  1. Enter the second $120 transaction as a negative outflow in the credit card account.
  2. Assign it to the same “Groceries” category.
  3. Confirm that her Groceries category now showed the correct amount.

She replied, “That was way easier than I expected. I feel like I actually understand how this works now.”

The takeaway? Refunds aren’t setbacks—they’re part of real-life planning.

When to Use Notes or Flags

Sometimes it’s helpful to add a note or flag to the original purchase when a refund is in progress, especially if:

  • The refund will take a while to process
  • You’re tracking multiple returned items
  • You want to explain discrepancies in the category

You can add a note like “Refund requested on 4/10 – pending” and remove it once the money hits your account.

This kind of self-documentation helps you stay organized and confident as you navigate category adjustments.

Don’t Let Returns Undermine Your Confidence

It’s easy to feel like you’re doing something “wrong” when you have to edit or correct transactions. But in YNAB, flexibility is the whole point.

Spending plans should reflect reality. That means:

  • Tracking refunds just like expenses
  • Adjusting categories without shame
  • Embracing updates as part of the process

You’re not backsliding when you edit your plan. You’re getting better at aligning it with your life.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Need Help Fixing Refunds and Cleaning Up Your Categories?

Whether you’re unsure how to record a return or want a cleaner, more confident approach to tracking your finances, Master Budget Coaching can help.

Schedule Your Free Consultation

How to Build an Emergency Fund Using Your YNAB Spending Plan

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How to Build an Emergency Fund with YNAB

Set up a safety net that makes financial setbacks feel manageable.

Why Emergency Funds Matter More Than You Think

Life is unpredictable. Even the most carefully crafted spending plan can be disrupted by a car repair, medical bill, job loss, or home emergency.

That’s where an emergency fund comes in. It’s not just a stash of cash—it’s your peace of mind. It gives you room to breathe, respond instead of react, and avoid taking on debt when life throws a curveball.

But many people delay building one because it feels overwhelming or impossible.

Let’s change that.

YNAB gives you a clear, doable way to create and grow an emergency fund—without derailing your other goals or putting everything else on hold.

What an Emergency Fund Actually Is (and Isn’t)

An emergency fund is a financial buffer. It’s money set aside specifically for unexpected expenses—not irregular bills (like annual insurance) or planned costs (like vacations).

It’s not:

  • A catch-all for everything unplanned
  • A backup for overspending in other categories
  • A guilt trip waiting to happen

It is:

  • A designated savings cushion
  • A core part of financial stability
  • A way to break the cycle of reacting with credit cards or loans

You get to define what counts as an emergency in your life. And YNAB gives you the tools to prepare for those moments in advance.

Step 1: Create a Dedicated Emergency Fund Category

Start by creating a separate category called “Emergency Fund” (or something meaningful to you—like “Peace of Mind” or “Safety Net”).

Place it in its own group if that helps you visually prioritize it. This isn’t a savings goal you’ll dip into regularly. It’s your long-term buffer against life’s surprises.

Step 2: Decide on a Realistic Target

Most financial experts recommend 3 to 6 months of essential expenses. That’s great—but if you’re starting from zero, it can feel impossible.

That’s why we recommend a tiered approach:

  • Starter Goal: $500–$1,000
  • Intermediate Goal: 1 month of essential expenses
  • Long-Term Goal: 3–6 months of expenses

YNAB’s Savings Target feature lets you visualize your progress and gives you feedback as you get closer to your goal.

The key is to focus on progress over perfection. Every dollar you assign to your emergency fund increases your security and resilience.

Step 3: Fund It Like a Monthly Bill

If you wait until “extra” money appears, your emergency fund will never grow.

Instead, treat it like a recurring expense. Even $10 or $50 per paycheck adds up over time.

Within your Ready to Assign balance in YNAB, prioritize your emergency fund just as you would rent or groceries. Use a Monthly Funding Target to ensure it’s built into your plan—not tacked on later.

Step 4: Separate It (If That Helps)

Some people prefer to keep their emergency fund in a separate savings account for psychological clarity or to prevent accidental spending. That’s totally fine.

YNAB allows you to track your emergency fund by category regardless of where the money physically lives. What matters is that the funds are assigned with intention.

If you do keep it separate, make sure it’s still easily accessible in a true emergency—but not so convenient that you’re tempted to use it for everyday spending.

Step 5: Know When (and When Not) to Use It

An emergency fund is there to be used—but only for actual emergencies.

Situations like medical co-pays, emergency car repairs, appliance breakdowns, or sudden income loss absolutely qualify. YNAB’s flexible tools make it easy to reassign funds, reflect what happened, and get back on track.

What doesn’t count? A last-minute vacation deal, a holiday sale, or spending that could have been anticipated. That’s what true expense categories are for, which you can learn more about through YNAB’s official features page.

The goal is not to avoid using the fund, but to protect it for real needs.

Step 6: Rebuild Without Shame

If you’ve used your emergency fund recently—good job. That’s what it’s there for.

The next step is to rebuild it. In YNAB, reset your savings target and return to your monthly funding habit. Whether it takes a few weeks or several months, the habit of replenishing builds momentum.

Clients often feel discouraged after “dipping in,” but we remind them: that was a win. You didn’t go into debt. You used your plan. Now you’re simply adjusting.

Step 7: Consider a Layered Emergency Strategy

Many clients find it helpful to separate their emergency fund from other “surprise” expenses by building a layered system of protection:

  • A Mini Emergency Fund for immediate, low-cost needs
  • A Major Emergency Fund for large, unpredictable crises
  • Rainy Day Categories for common but irregular costs like home maintenance, vet bills, or vehicle repairs

This approach keeps your true emergency fund reserved for real crises and avoids unnecessary disruption to your core spending plan.

For tips on how to structure these categories effectively, refer to our YNAB category setup guide.

Real Client Story: Anna’s Emergency Fund in Action

Anna came to us with a goal of paying off debt and building savings. Like many clients, she’d tried for years to get ahead but struggled with consistency.

We helped her create a starter emergency fund goal of $1,000 and set up monthly contributions of $50. Three months in, she hit her milestone—just in time.

Her dog needed emergency surgery. The $430 bill was stressful, but not catastrophic. She paid it from her emergency fund and said, “I didn’t have to freak out or put it on a card. I just handled it.”

That’s the difference preparation makes.

Final Thoughts: Don’t Wait for Calm to Start Preparing

The best time to build your emergency fund isn’t “someday when things settle down.” It’s now.

Even small, regular contributions matter. With the right structure, mindset, and tools, you can build a cushion that supports—not restricts—your life.

YNAB helps you stay calm in the face of uncertainty. Master Budget Coaching helps you build a personalized plan to make that calm a reality.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Ready to Build an Emergency Fund You Can Rely On?

We’ll help you take the guesswork out of getting started. Whether you’re saving your first $500 or trying to reach three months of expenses, we’ll create a plan that fits your life and your priorities.

Schedule Your Free Consultation

How to Get Back on Track with Your YNAB Spending Plan

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How to Get Back on Track with YNAB After Falling Off

Life happens. YNAB is flexible enough to help you restart at any point.

You’re Not Alone—Everyone Falls Off Sometimes

You started with the best of intentions. You set up your categories, assigned every dollar, and maybe even tracked spending for a few weeks. But then… life happened.

A busy season at work. A vacation. An emergency. Or maybe you just got tired of opening the app and seeing red.

If your YNAB spending plan has been collecting dust for days, weeks, or even months—take a breath. This happens to almost everyone at some point.

The good news? YNAB is built for real life. And there’s no shame in restarting. In fact, there’s a proven path to getting back on track—and we’re going to walk you through it.

Step 1: Let Go of Guilt

Before you do anything else, pause and give yourself some grace.

Falling behind on your spending plan isn’t a failure. It’s feedback. Something about your setup—or your season—stopped working. That’s not a moral shortcoming. That’s information.

The sooner you release guilt, the sooner you can get curious:

  • What made it hard to keep up?
  • What could make it easier next time?
  • What actually matters in your plan?

Self-compassion is step one. Every time.

Step 2: Pick a Restart Point

Here’s where people get stuck: they try to “catch up” before moving forward.

But with YNAB, you don’t have to enter 47 old transactions or reconcile the last three months perfectly. You just need to decide: when am I starting again?

We recommend restarting with the current month. Set a clean slate and go from here. If there are a few important expenses from last month you want to add for context—great. But don’t let the past paralyze you.

In fact, if things feel really messy, consider starting a brand-new budget file. Sometimes a fresh start is exactly what you need.

Step 3: Reconcile Your Accounts

Once you’ve picked a restart point, head into YNAB and reconcile your bank accounts. This step aligns your accounts with real life so your numbers reflect reality—not memory.

Here’s how:

  • Open your bank app or statement
  • Find your current balances
  • In YNAB, select “Reconcile” and enter the correct amount
  • Let YNAB make an adjustment if needed

This zeroes out any previous mismatches and lets you move forward with confidence. It doesn’t mean your old data is lost—it just means you’ve chosen accuracy over perfection.

Step 4: Assign What You Have Now

With clean accounts, it’s time to assign your current funds.

This is where YNAB’s power shines. You don’t need to forecast or guess. You simply ask:

“What do I want this money to do before I get paid again?”

Start with essentials:

  • Rent or mortgage
  • Utilities
  • Groceries
  • Transportation

Then look at upcoming bills, minimum payments, or must-do savings goals. Assign every available dollar a job until your Ready to Assign balance hits zero.

This step rebuilds trust in your spending plan, fast.

Step 5: Trim What No Longer Serves You

One common reason people fall off their YNAB plans is clutter.

Too many categories. Too many goals. Too many decisions.

Now is a perfect time to simplify. Review your category list and ask:

  • Do I still need this?
  • Can I combine this with another category?
  • Would this be easier with fewer buckets?

Don’t be afraid to delete or archive categories that feel irrelevant. Less can be more when it comes to staying consistent.

Want help with simplifying? Check out this article on creating effective categories:
➡️ The Best Way to Set Up YNAB Categories

Step 6: Set Small, Sustainable Habits

Restarting your spending plan is great. But consistency is what keeps it going.

Here are a few habits we recommend to coaching clients:

  • Open YNAB once a day—even if just for 60 seconds
  • Log transactions every evening, or enable automatic import if your bank supports it
  • Reassign dollars once a week—it’s normal to move things around
  • Review categories before big purchases, not after

Remember: you don’t have to be perfect. You just have to keep showing up.

Step 7: Plan for What’s Next (Not What’s Behind)

Once your plan is back in motion, you can start rebuilding momentum.

That might mean:

  • Setting new savings goals
  • Creating categories for upcoming expenses
  • Looking ahead to annual bills or holiday costs

The goal isn’t to rehash what you “should have done.” It’s to make your next money decisions with clarity.

And with YNAB, you’re never stuck. You’re always one decision away from progress.

Real Client Example: Jason’s Restart

Jason, a coaching client, started strong with YNAB. But after two unexpected medical bills and a chaotic holiday season, he stopped checking his plan. By February, he felt overwhelmed and frustrated.

We helped him:

  • Reconcile his accounts in one 30-minute session
  • Archive 17 unused categories
  • Create a simple “restart” spending plan with just 10 categories
  • Set weekly reminders to check in for 5 minutes
  • Build a one-month savings target for next year’s medical deductible

Jason said, “It felt like I was driving with my eyes open again.”

Falling Off Doesn’t Mean You’re Failing

The power of YNAB isn’t that you’ll never mess up. It’s that the system is designed to meet you right where you are—and help you build forward, one decision at a time.

So if your plan fell apart? That’s okay. Pick a date. Reconcile your accounts. Assign what you have. Let go of the rest.

And remember: you don’t need to rebuild your entire financial life tonight. You just need to make your next money decision with intention.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Ready to Restart Without Regret?

If you’ve fallen off your spending plan and need guidance getting back on track, we’re here to help. Whether you need a reset, a simplified approach, or accountability, Master Budget Coaching can support you every step of the way.

Schedule Your Free Consultation

How to Plan for Travel Using Your YNAB Spending Plan

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How to Budget for Travel Using YNAB

Whether you’re planning a weekend getaway or a three-week adventure, your spending plan can take you there.

Why Planning Travel Expenses Matters

Travel is one of the most joyful ways to spend money—but it can also be one of the most stressful if you haven’t planned ahead. From flights and hotels to meals and souvenirs, travel costs add up quickly—and they rarely show up all in one place or at one time.

That’s why using YNAB to create a travel spending plan isn’t just about having a number in mind. It’s about building a system that reflects how, when, and why you spend money—before, during, and after your trip.

Whether you’re saving for a once-in-a-lifetime vacation or a weekend road trip, YNAB gives you the structure and flexibility to make it happen without financial regret.

Why Most Travel Plans Fall Short

Many people try to “mentally budget” for travel—or jot down a few estimates—but that’s often not enough. Without a structured plan:

  • You underestimate real costs
  • You forget critical expenses like tips, baggage fees, or pet sitting
  • You overspend mid-trip without realizing it
  • You pay the price after your return—sometimes literally

A well-built travel spending plan in YNAB lives inside your everyday system. That means every dollar has a job—whether it’s for groceries or a gondola ride. And because YNAB is dynamic, you can adjust as your plans evolve without losing control.

Step 1: Create a Travel Category Group

Start by creating a dedicated Travel category group in your YNAB spending plan. This visually separates travel from your daily expenses and makes it easier to assign money with intention.

Inside that group, create subcategories for each part of your trip. For example:

  • Flights / Transportation
  • Lodging
  • Dining Out
  • Groceries / Snacks
  • Activities / Entertainment
  • Travel Insurance
  • Tips / Tolls / Fees
  • Gifts & Souvenirs
  • Pet Care
  • Airport Parking / Rideshare
  • Emergency / Buffer

Traveling with others? Add a Reimbursement category to track shared costs and paybacks.

One Category Can Be Enough

While breaking your travel into subcategories can offer more detail, it’s not a requirement. Many users prefer simplicity—and a single travel category per trip can work beautifully.

Instead of tracking flights, hotels, and meals separately, you might create one broad category labeled “Cancun 2026” and assign all trip-related expenses there. This approach simplifies your planning and still gives you a clear view of how much you’ve saved and spent for the trip overall.

This is ideal if:

  • You’re less concerned with spending analysis
  • You want to track progress toward a total amount
  • You value a cleaner, more streamlined budget layout

At Master Budget Coaching, we often recommend this for newer users or those who travel infrequently. Your spending plan should fit your brain—not the other way around.

Step 2: Estimate Your Costs With Real Data

Don’t guess—research. Use travel websites, itineraries, and past experiences to create realistic category estimates. Look up average meal prices, park entry fees, baggage costs, and currency exchange rates if applicable.

Use a notepad or spreadsheet to total everything before entering them into YNAB using Savings Targets. This ensures you know exactly how much to set aside each month.

Helpful resource from YNAB:
➡️ Using Targets in Your Budget – YNAB Blog

Step 3: Assign Money Over Time

Once you’ve set your travel targets, assign funds gradually—just like you would with True Expenses. If the trip is months away, spread it out. If it’s sooner, you may need to shift dollars from other categories.

This is where YNAB’s Ready to Assign function and flexible category moves shine. You’re not budgeting for a vacation—you’re creating a travel spending strategy that works alongside your entire plan.

Step 4: Use Your Spending Plan While Traveling

Here’s where most people go off course—they plan the trip, then ignore their spending categories once they’re on the road.

YNAB’s mobile app helps you track in real time. Assign transactions as they happen, flag unusual expenses, and know how much you’ve got left—day by day.

Tips for in-trip tracking:

  • Log purchases at the end of each day
  • Use memos for clarity (e.g., “Day 3 – Museum + snacks”)
  • If you overspend in one area, move funds from another travel category

Step 5: Reflect and Adjust When You Return

After the trip, take a few minutes to review your travel categories.

Ask yourself:

  • What worked well?
  • What was over- or underfunded?
  • What could be adjusted next time?

If you travel regularly, consider adding a Recurring Travel Fund as a permanent line in your plan. Saving year-round removes stress from future getaways.

Real Client Example: Melissa’s Girls’ Trip

Melissa, a coaching client, wanted to plan a weekend getaway with friends to Seattle. She wasn’t sure she could afford it and didn’t want to charge it to her credit card.

We created:

  • A travel category group with nine specific subcategories
  • A six-month savings timeline using YNAB Targets
  • Strategies for shifting discretionary funds into travel
  • A reimbursement tracker for shared meals and rides

She funded the trip fully in advance, tracked expenses easily during the trip, and came home with zero financial stress.

Mistakes to Avoid When Planning for Travel

  • Ignoring food inflation: Restaurant meals can cost much more than expected
  • Leaving out small costs: Think of fees, tips, and on-the-go extras
  • Not adding a buffer: $100 set aside for surprises can be a lifesaver
  • Failing to track while traveling: Memory fades—your app doesn’t
  • Forgetting currency conversions: International trips require extra planning

Travel Spending Reflects Your Values

At Master Budget Coaching, we teach that spending plans aren’t just financial tools—they’re value statements.

If travel matters to you, it deserves space in your plan. Whether it’s reconnecting with loved ones, exploring new cultures, or just resting deeply for a few days, travel should feel rewarding—before, during, and after.

YNAB helps you make that possible. And we’re here to help you make it personal.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Ready to Plan Your Next Trip Without Financial Stress?

If travel is part of your ideal life—but budgeting for it feels overwhelming—Master Budget Coaching can help. We’ll work with you to set travel goals, build smart categories, and use YNAB to make your next getaway a financial win.

Schedule Your Free Consultation

How to Customize YNAB with the Toolkit Extension

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How to Use the Toolkit Extension to Customize YNAB

Unlock even more value from YNAB with this powerful browser add-on.

Why Customize YNAB?

YNAB is powerful out of the box—but like most great tools, it gets even better when you personalize it.

If you’ve ever thought, “I wish YNAB showed more info on screen” or “I’d love to see a running balance like my old bank register,” you’re not alone. That’s exactly why the YNAB Toolkit Extension exists.

The Toolkit is a free browser extension built by fans of YNAB to add features that many users (especially power users) have asked for over the years. It doesn’t change how YNAB works under the hood, but it does offer visual upgrades, workflow improvements, and helpful extras to make budgeting faster, easier, and more intuitive.

Let’s explore what it does, how to install it, and which features we at Master Budget Coaching recommend the most.

What Is the Toolkit Extension?

The Toolkit is an open-source browser extension compatible with Chrome, Edge, Firefox, and Brave. It’s not made by YNAB, but it’s well-supported by the community and widely used by long-time fans.

You can find it here:
➡️ Toolkit for YNAB

Once installed, it adds a customization menu to your YNAB interface, where you can toggle dozens of features on or off. These enhancements are only visible to you (they don’t affect your actual budget or sync across devices).

This means you can use Toolkit features only on desktop, while keeping your mobile app experience unchanged.

How to Install the Toolkit Extension

You can install the Toolkit directly from your browser’s extension store. Just follow these steps:

  1. Open your preferred browser (Chrome, Edge, Firefox, or Brave)
  2. Go to your browser’s extension/add-on store
  3. Search for “Toolkit for YNAB”
  4. Click “Add” or “Install”
  5. Once installed, pin the extension icon for easy access
  6. Open YNAB in your browser, then click the Toolkit icon to configure your settings

From there, you’ll have access to dozens of optional features—ready to customize.

Our Favorite Features at Master Budget Coaching

We’ve tested dozens of Toolkit options with clients over the years. Here are our top recommendations for features that improve visibility, save time, or offer strategic insights—without adding clutter.

1. Running Balance (Enhanced View)

YNAB now includes a built-in Running Balance feature, but it’s disabled by default and must be turned on individually in each account register. The Toolkit Extension enhances this functionality by displaying running balances more consistently across all accounts and, in some cases, adding formatting options not available in the native version.

Why it’s helpful:

  • See how your balance changes over time
  • Spot patterns in spending or deposits
  • Monitor your cash flow without opening multiple screens

2. Income vs Expense Report

Adds a new report showing total inflows and outflows side-by-side by month.

Why it’s helpful:

  • Gives you a snapshot of profit/loss (especially useful for freelancers or side hustlers)
  • Makes monthly reviews easier
  • Offers a clearer picture than Net Worth alone

3. Display Target Balance Under Category

Shows your assigned Target amount next to the category name, so you can see how close you are without clicking.

Why it’s helpful:

  • Keeps goal progress top of mind
  • Encourages consistent contributions
  • Eliminates unnecessary clicks

4. Days of Buffering

Estimates how many days your current money would last based on past spending.

Why it’s helpful:

  • Gives a quick check on financial stability
  • Motivates savings and reserve building
  • Helps you stretch toward a 30-day buffer (or more)

5. Hide Zero Balance Categories

Declutters your budget view by hiding any categories with $0 assigned and no recent activity.

Why it’s helpful:

  • Focuses your attention on what matters now
  • Great for monthly check-ins
  • Makes budgeting feel less overwhelming

6. Highlight Negative Numbers

Adds red highlights to negative balances or overspent categories—even if covered—so you don’t miss them.

Why it’s helpful:

  • Improves financial awareness
  • Prevents small issues from snowballing
  • Keeps your spending plan realistic

Customization Without Confusion

It’s tempting to turn on everything—but too many toggles can clutter your interface and reduce clarity.

We recommend choosing 3–6 features to start, based on your budget style and needs. Revisit the Toolkit menu every month or two as your comfort with YNAB evolves.

What the Toolkit Extension Doesn’t Do

Let’s be clear: the Toolkit doesn’t modify YNAB’s actual data. It won’t:

  • Change your budget on mobile
  • Sync settings across devices
  • Offer “official” support from YNAB
  • Store your personal financial data

It’s purely a visual and workflow enhancement for your desktop browser experience. If you disable the extension, everything goes back to default instantly.

Client Example: Jason’s ADHD-Friendly Budget View

Jason, a coaching client with ADHD, found the standard YNAB view too text-heavy and overwhelming. He’d log in, get distracted, and close the tab without doing anything.

We customized his Toolkit to:

  • Show running balances
  • Collapse unused categories
  • Highlight overspending in bold red
  • Auto-focus on current month only

The result? Jason now opens YNAB every morning—and actually enjoys it.

“This version makes sense to my brain,” he told us. “I finally feel in control.”

How to Make the Toolkit Work for You

Start small. Choose 1–2 features that fix a real friction point in your current setup.

Some questions to help guide you:

  • Do you wish you could see more goal progress at a glance?
  • Are you constantly scrolling through unused categories?
  • Would it help to see how long your money will last?

Once you try a few changes, you’ll quickly figure out what adds value—and what adds noise.

Need help choosing the best options for your style? Master Budget Coaching can guide you through a Toolkit tune-up as part of your personalized coaching.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Ready to Customize YNAB for the Way You Think?

If YNAB works—but doesn’t feel intuitive—Master Budget Coaching can help. We’ll walk you through Toolkit features and category strategies that match your brain, your lifestyle, and your goals.

Schedule Your Free Consultation

How to Track Business and Personal Expenses Separately in YNAB

Personal FinanceLeave a comment

How to Track Business Expenses Separately in YNAB

Freelancers and side hustlers can use one budget to keep business and personal finances organized—without the chaos.

When You Wear Every Hat, Your Budget Has to Work Harder

Freelancing, side hustling, running a small business—whatever you call it, managing self-employment is no joke.

You’re not just the service provider. You’re the marketer, the scheduler, the customer support team, and… the bookkeeper.

And when all your income flows into one bank account, it’s easy to feel like your business is tangled up in your personal life.

  • “Was that Canva charge for my client project or my kid’s school newsletter?”
  • “Do I report this Amazon purchase as a business expense or not?”
  • “How do I even know if I’m making a profit?”

The good news? You don’t need complicated tools or extra subscriptions. With a few smart setups, you can track business income and expenses directly inside your main YNAB budget—or a separate one—while staying organized and audit-ready.

Why You Should Separate Your Bank Accounts (But Not Necessarily Your Budget)

If you’re earning any kind of business income—freelance, consulting, coaching, side hustles—a separate bank account is essential. It doesn’t need to be fancy, but it should be distinct from your personal checking account.

Why?

  • It simplifies bookkeeping and taxes
  • Keeps your business income and expenses clearly organized
  • Helps prevent accidental spending of business funds on personal items
  • Makes you look more professional to clients and partners

However, this doesn’t mean you need two YNAB accounts (or subscriptions).

You can still track both business and personal finances in a single YNAB budget, using clearly labeled categories and groups. This gives you a full picture of your cash while maintaining clean separation.

Prefer to keep your business finances totally siloed? That’s fine too. Many business owners choose to create a separate budget (or “spending plan”) within YNAB, especially if the business is large enough to require its own financial system.

The key is to choose the option that helps you stay consistent and confident.

Step 1: Create a Business Category Group

Start by creating a category group called something like “Business Expenses” or “Freelance Work.” Inside that group, add categories for the most common things you’ll need to track, such as:

  • Office Supplies
  • Subscriptions & Software
  • Advertising & Marketing
  • Client Gifts
  • Equipment & Tools
  • Education & Courses
  • Taxes (we’ll come back to this one)

Keep it simple. Don’t build 20 categories before you’ve even made $200. Your setup can evolve as your business grows.

Step 2: Track Business Income with Category Context

Let’s say you receive $1,000 from a freelance project. Instead of leaving it in “Ready to Assign,” assign it directly to a category like “Business Revenue.”

You can also create a “Business Income” group and break it down by:

  • Client name
  • Project type
  • Revenue stream (e.g., coaching, products, affiliate income)

This gives you insight into which parts of your business are working—and how much cash is actually supporting your goals.

If you reinvest that money into your business, move it from your income category to the appropriate expense category. If you “pay yourself,” move it to a personal category like Groceries or Spending Money.

Step 3: Use Notes for Tax Tracking

You don’t need accounting software to start prepping for taxes. You just need good habits.

For every expense that might be deductible, add a quick note in the category or transaction description. For example:

  • “Zoom subscription for client meetings”
  • “Business cards for networking event”
  • “Software renewal for project management”

Come tax season, you’ll be able to run a simple report and filter all your business-related categories or keyword tags. No more scrambling through your bank statements.

Step 4: Set Aside Money for Taxes

This is where a lot of freelancers get burned.

Unlike a traditional job, no one’s withholding taxes from your business income. That’s on you.

Use YNAB’s Targets feature to build a “Self-Employment Tax” category and contribute a percentage of every freelance payment (usually 25–30% in the U.S., depending on income and location).

Example:

  • You get paid $2,000
  • Allocate $500 to your “Taxes” category
  • Now you know you’re covered—and won’t be shocked in April

If you’re not sure what your tax rate should be, start with a conservative estimate and adjust quarterly.

Step 5: Use Color or Flags to Visually Separate Items

Even with well-labeled categories, visual cues help.

Try using YNAB’s flags to mark:

  • Business transactions (red)
  • Reimbursements (blue)
  • Shared expenses (yellow)

It’s not a formal part of reporting, but it makes quick reviews much easier.

Step 6: Track Reimbursements and Shared Expenses

What if you pay for something business-related out of your personal funds—or vice versa?

No problem. You can:

  1. Categorize the expense correctly (business or personal)
  2. Create a “Pending Reimbursement” category if needed
  3. Move money between categories when reimbursed

If you share tools or subscriptions between business and personal life (e.g., Adobe Creative Suite), decide on a percentage split and allocate accordingly.

The goal isn’t perfection—it’s clarity.

A Real Client Story: Claire’s Consulting Clutter

Claire was a marketing consultant juggling multiple client contracts while homeschooling her kids. Her bank account was full of mixed charges, and her spreadsheet tracking system was falling apart.

We helped her:

  • Build a “Consulting Income” group with client-specific categories
  • Set up clear expense categories for travel, software, and supplies
  • Create a recurring tax transfer workflow every time she got paid
  • Use notes to track tax-deductible purchases and project-specific costs

“Now I can open YNAB and see exactly how much I’ve earned, what’s owed in taxes, and how much is really mine to spend,” she said.

Use YNAB’s Reports to Stay On Track

YNAB’s built-in reporting features—found under the “Reflect” tab—are especially useful for freelancers.

You can use the Spending and Net Worth reports to monitor:

  • Total business income over time
  • Business-related expenses by category
  • Monthly profit margins
  • Changes in your cash position

This helps you make informed decisions about raising rates, taking time off, or investing in tools that will actually help.

For more guidance, check out YNAB’s official post on budgeting for freelancers.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Want to Build a Budget That Works for Your Business?

Whether you’re just getting started or trying to untangle years of mixed finances, Master Budget Coaching can help you design a system that works for both your business and your life.

Schedule Your Free Consultation

How to Simplify Your YNAB Spending Plan

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How to Simplify YNAB When It Starts Feeling Too Complicated

More categories aren’t always better. Here’s how to streamline your YNAB setup without losing control.

When Your Budget Feels Like a Burden

You started using YNAB to feel more in control of your money—not to add another layer of stress.

But somewhere along the way, your budget might have become… too much.

Too many categories.
Too many goals.
Too many moving pieces that you don’t even remember creating.

Now, instead of feeling empowered, you feel overwhelmed. Updating your budget starts to feel like a chore. You find yourself avoiding it, delaying check-ins, and questioning if the effort is worth it.

If that’s you, you’re not alone—and you’re not doing anything wrong. It just means it’s time to simplify.

At Master Budget Coaching, we work with people who love YNAB but need to make it work for real life. The goal isn’t to do more—it’s to do less, but better.

As YNAB themselves explain in their post on what to do when your budget feels too complicated, it’s normal to feel overwhelmed. The solution is to zoom out and reevaluate what’s actually helpful.

Why Your Budget Might Be Too Complicated

Most people don’t set out to create an overwhelming budget. Complexity creeps in over time:

  • You add categories “just in case”
  • You set up detailed goals for everything
  • You duplicate categories to track separate things (like gifts for different people)
  • You try every feature at once

The result? A bloated, tangled setup that’s hard to navigate—and even harder to maintain.

The key is to identify what’s getting in your way and intentionally remove friction.

Signs You Might Need to Simplify

Here are some clear indicators that your YNAB budget needs streamlining:

  • You avoid opening the app because it feels exhausting
  • You regularly forget what certain categories are for
  • You aren’t sure which goals are current, paused, or outdated
  • You’re manually entering transactions but falling behind
  • You spend more time maintaining your budget than using it to make decisions

Sound familiar? Let’s walk through how to fix it.

1. Clean Up and Consolidate Categories

This is usually the biggest source of overwhelm.

Start by asking:

“Is this category helping me make better spending decisions?”

If not, archive it. If you’re unsure, move it to a temporary “Review Later” category group. You can always restore it later.

Also look for consolidation opportunities. For example:

  • Combine “Fast Food” and “Restaurants” into “Dining Out”
  • Combine “Subscriptions” into one monthly “Recurring Services” group
  • Collapse all the random “Household” subcategories into one catchall

For more help organizing your categories effectively, read this guide on customizing your YNAB categories.

2. Stop Tracking Things That Don’t Matter (Yet)

Not everything needs a category or a goal right now.

Ask yourself:

“Is this category aligned with a decision I’m making this month?”

If not, consider hiding it. Examples might include:

  • Travel categories when you’re not currently planning a trip
  • Holiday gift categories when it’s March
  • Special projects or wish list items with no timeline

3. Set Fewer, Clearer Goals

YNAB’s Targets feature is powerful—but only when used intentionally.

If you’ve got goals set on 15 categories, it’s easy to lose track of what’s active and what’s not.

Instead, try this:

  • Choose 3–5 categories to actively target this quarter
  • Use “Notes” to track your reason for each goal
  • Pause or remove goals that don’t have funding priority right now

4. Automate More (But Only If It Helps)

Many users try to do everything manually “to stay connected.”

That’s admirable—but can also be unsustainable.

Consider connecting your bank accounts for auto-import, especially if:

  • You fall behind on entering transactions
  • You’re reconciling large backlogs
  • You want to save time while still staying aware

Pro tip: Use a daily or weekly review routine to stay engaged without feeling overwhelmed.

5. Reevaluate Your Category Groups

Category groups should help you navigate—not confuse you.

If you find yourself scrolling endlessly or skipping groups entirely, try one of these simplified frameworks:

  • By Timeframe: This Month, Next Month, Long-Term
  • By Function: Essentials, Lifestyle, Savings, Goals
  • By Control: Fixed Expenses, Flex Spending, Priorities

You don’t need a fancy structure. You just need one that makes sense to you.

6. Use Notes to Reduce Mental Clutter

Rather than creating new categories just to “remember something,” use the Notes section in each category.

Examples:

  • Add the due date for an annual subscription
  • Track the number of months left on a savings goal
  • Record context about a temporary expense

This keeps your categories clean while still giving you memory support.

7. Reflect (Don’t Just React)

If you’re overwhelmed by daily budget decisions, try zooming out.

YNAB’s “Reflect” tab now houses key insights—like your Age of Money, total activity, and overall trends.

Use it monthly to ask:

  • Am I spending in alignment with my priorities?
  • Are there areas I’m consistently overspending?
  • What can I set aside for next month’s needs?

Sometimes, it’s not that your budget is broken—it’s that you’re too deep in the weeds to see it clearly.

A Real Client Example: Brendan’s Budget Burnout

Brendan came to us after hitting a wall. He had over 80 active categories and hadn’t reconciled his budget in six weeks.

“I used to love budgeting,” he told us. “Now it just feels like a second job.”

Together, we:

  • Consolidated his categories from 80 to 35
  • Set targets on only 4 high-priority savings goals
  • Created a weekly 10-minute review routine
  • Hid off-season categories that weren’t relevant

Within a month, Brendan said he felt “back in control” and “actually excited” to open the app again.

Simplifying didn’t make him less committed. It made him more consistent.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Ready to Simplify and Fall in Love With Your Budget Again?

A complex budget doesn’t mean you’re doing more. It usually means you’re doing too much.

Let’s build a streamlined system that works—for your life, your goals, and your peace of mind.

Schedule Your Free Consultation

How to Use YNAB’s Age of Money Tool to Build Long-Term Security

Personal FinanceLeave a comment

Using the Age of Money Tool to Build Long-Term Security

YNAB’s ‘age of money’ tells you how far ahead you are financially—and how to improve it.

What If You Could Pay This Month’s Bills with Last Month’s Money?

Imagine opening your budgeting app and realizing that the paycheck you just received won’t be needed for two weeks. Or even a month. Your bills are covered. Your categories are funded. And you’re not stressed.

That’s the power behind YNAB’s Age of Money.

At Master Budget Coaching, we’ve seen this single metric give clients a deep sense of financial peace—without requiring them to earn more money. Instead, it rewards consistency, planning, and patience.

If you’ve ever wanted breathing room between your paycheck and your bills, Age of Money is your new favorite number.

Why Most People Live Paycheck to Paycheck (Even High Earners)

It’s easy to assume that living paycheck to paycheck only happens at low incomes. But we’ve coached families making six figures who still experience:

  • Panic when a bill hits a day before payday
  • Anxiety watching account balances dip near zero
  • A sense of “treading water,” even when spending is tracked

Why? Because they spend money as soon as it comes in.

This isn’t a discipline issue—it’s a system issue. Without a strategy to create space between income and expenses, every dollar stays in motion. YNAB’s Age of Money helps change that.

What Is Age of Money in YNAB?

Age of Money is a metric that tells you how long your dollars have been sitting in your account before being spent. In other words, it tracks how many days pass between when you receive money and when you use it.

Here’s what it tells you:

  • Low Age of Money (0–10 days): You’re likely spending income immediately as it arrives.
  • Moderate Age of Money (20–30 days): You’re starting to build buffer space.
  • High Age of Money (30+ days): You’re ahead—your new income covers future needs, not current ones.

The higher the number, the more time you’ve built between earning and spending.

Why It Matters

Age of Money isn’t just a data point—it reflects:

  • Your financial margin
  • Your ability to absorb surprise expenses
  • Your capacity to plan long-term goals
  • Your stress level around money

When you raise your Age of Money, you reduce the urgency of every financial decision. It’s like giving yourself permission to breathe.

How to Increase Your Age of Money (Even If You’re Starting at Zero)

We often work with clients who are just beginning to stabilize. They might be using YNAB already but still feel stuck with a low Age of Money. Here’s how we help them grow that number over time.

1. Fund Next Month’s Expenses—One Category at a Time

Don’t aim to fund an entire month all at once. Start with one category:

  • Fund next month’s rent
  • Then the next month’s groceries
  • Then utilities, etc.

Over time, your current paycheck will stretch further into the future—automatically raising your Age of Money.

2. Build a “Hold for Next Month” Category

Create a category where you park money that you don’t need this month. Label it something like “Next Month’s Funding” and treat it like a savings goal.

Each time you receive income, ask:
“Do I need this now, or can I let it sit?”

Even holding onto part of a paycheck for a few days more than usual makes a difference.

3. Reduce Timing Pressure

YNAB encourages you to assign dollars only after they arrive. But when those dollars show up late—or are needed immediately—your Age of Money stagnates.

Try shifting recurring bills after your payday if possible. Even a few days of delay increases your buffer.

4. Resist the Urge to Spend “Just Because It’s There”

As your account balance grows, it’s tempting to spend more freely. But Age of Money rewards restraint—not deprivation, just delayed decision-making.

Remind yourself:
Every dollar that waits increases your financial distance from chaos.

5. Track Your Progress Monthly

You can view your Age of Money under the “Reflect” tab in YNAB. Review it monthly to notice trends—not to shame yourself, but to celebrate momentum.

Even going from 8 days to 14 days is a win.

Real-Life Client Story: Amanda’s Buffer Breakthrough

When Amanda started coaching with us, her Age of Money was 5 days. She felt like she was always reacting—transferring money, worrying about timing, stressing over every withdrawal.

Here’s what changed:

  • She created a “Next Month’s Rent” category and funded it early
  • She paused some optional subscriptions and redirected the money
  • She kept a $50 cushion in “Miscellaneous” instead of zeroing it out

In 3 months, her Age of Money rose to 28 days. More importantly, she described herself as “less panicked” and “finally in control.”

That’s the power of a simple number.

Want to Grow Your Age of Money? Start With a Goal.

Your Age of Money won’t improve by accident. But it doesn’t require a massive windfall, either.

It starts with:

  • Setting a goal to live on last month’s income
  • Choosing one category to fund ahead
  • Letting cash sit longer before you spend it
  • Using YNAB as a proactive tool—not just a tracker

You can learn more about YNAB’s Age of Money here:
Age Your Money – YNAB Blog

Internal Link

Want help prioritizing the right savings goals while growing your buffer?
Start with this foundational article:
How to Set Financial Goals with YNAB (And Actually Reach Them)

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Ready to Build Financial Breathing Room?

You don’t need to overhaul your life to stop living paycheck to paycheck. You just need a plan that creates space—one decision at a time.

Let’s build that buffer together.

Schedule Your Free Consultation

How to Track Cash Spending in YNAB

Personal FinanceLeave a comment

How to Track Cash in YNAB (Without Losing Your Mind)

Still Using Cash? YNAB Can Handle That.

Why Cash and Digital Budgets Don’t Always Play Nice

Cash is still king in certain parts of life—whether it’s tipping the babysitter, buying donuts at the school fundraiser, or grabbing last-minute gas at a rural station.

But if you’re using YNAB and primarily budgeting digitally, tracking those cash expenses can feel awkward. It’s easy to forget transactions or throw off your category balances if you’re not careful.

At Master Budget Coaching, we’ve helped dozens of clients bridge the gap between physical cash and YNAB’s digital system. The good news? YNAB makes it entirely possible—you just need a consistent process.

Step 1: Set Up a “Cash Wallet” Account in YNAB

The easiest way to start is by creating a dedicated account called “Cash” or “Wallet.”

Think of this as a virtual version of your physical wallet. Any time you withdraw cash from your bank, you’ll record it as a transfer from your checking account to your “Cash” account in YNAB.

Here’s how:

  • In YNAB, add an account (select “Unlinked”) and name it “Cash” or “Wallet”
  • When you pull out $100 from the ATM, record a transfer: $100 from Checking → Cash Wallet
  • This keeps your total net worth intact, but now the money exists in your physical possession—and in YNAB’s digital mirror

Step 2: Categorize Every Cash Transaction—Just Like a Card

This is where most people get tripped up. Once the cash is in your wallet, it becomes invisible unless you manually log the spending.

Every time you use physical cash, treat it just like a debit card transaction:

  • Enter it into the Cash account in YNAB
  • Assign the correct category
  • Add a memo if needed (e.g., “Tip for haircut”)

The key is frequency. You don’t have to log it instantly, but try to enter cash transactions at the end of the day or week while you still remember them.

Tip: Use the Mobile App or Voice Memos

If you’re out and about, open the YNAB mobile app and quickly jot down the expense. Can’t do that? Use a voice memo on your phone, or snap a picture of the receipt and enter it later.

The more friction you remove, the more likely you’ll stay consistent.

What If You Don’t Remember How You Spent It?

It happens. You withdraw $100, and three days later, it’s gone—and you can’t remember how.

Here’s what we recommend:

  • Create a catch-all category in your budget like “Untracked Cash” or “Forgotten Expenses”
  • If you ever have to reconcile your Cash account and the balance doesn’t match, assign the discrepancy to that category

This prevents your budget from becoming inaccurate and lets you acknowledge the gap honestly.

Use “Refill Up To” Targets for Ongoing Cash Use

If you regularly keep $50–$100 in your wallet, consider setting a target using YNAB’s “Refill Up To” feature.

Example:

  • You like to carry $80 in cash each week
  • In YNAB, create a category like “Cash On Hand”
  • Use the Refill Up To target to top it off whenever it dips below $80

This helps you treat cash like any other planned spending and ensures it’s always funded intentionally.

Coaching Story: From Frustration to Flow

One client, Jason, was constantly frustrated because his spending plan didn’t reflect his real-life habits. He used cash to pay for school lunches, tips, and yard sale finds—but never tracked it.

As a result, his categories were off, balances were confusing, and he stopped trusting the numbers.

We helped Jason create a “Wallet” account in YNAB, taught him how to enter cash spending weekly, and showed him how to reconcile the balance with what was physically in his wallet every Sunday.

“Once I started treating cash like a debit card, everything clicked. My budget actually matches reality now.”

Avoid These Common Cash-Tracking Mistakes

❌ Not Recording ATM Withdrawals

If you just reduce your checking balance manually, your budget won’t reflect where that money went. Always record it as a transfer to the Cash account.

❌ Delaying Entries for Too Long

Memory fades fast. If you wait a week to enter cash spending, you’ll forget what it was for—and it will likely land in the wrong category (or go unassigned altogether).

❌ Not Reconciling Your Cash Balance

Just like your bank accounts, your wallet should be reconciled occasionally. If YNAB says you should have $26 in cash, and you only have $18, record the $8 as “Untracked Cash” and reset.

YNAB’s Five Questions Apply to Cash Too

Just because it’s physical doesn’t mean it’s outside your plan.

When you withdraw $100 cash, ask:

  • What does this money need to do before I’m paid again?
  • Am I spending what I thought I would?

Your cash should be just as accountable—and just as flexible—as your debit card.

Check out YNAB’s updated method if you need a refresher:
➡️ YNAB’s Five Questions

Final Thoughts: Don’t Let Cash Derail Your Plan

YNAB was built to help you manage real-life money—and sometimes that means physical bills, not just digital transactions.

With a simple process, a little consistency, and a “Cash” account in YNAB, you can track everything, stay accurate, and spend confidently.

Cash doesn’t have to be messy. It just needs a plan.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

Want Help Making Your Budget Match Real Life?

We’ll help you build a plan that includes everything—from tap-to-pay to tip jars.

Schedule Your Free Consultation

How to Use Savings Targets in YNAB Effectively

Personal FinanceLeave a comment

How to Use YNAB’s Savings Targets Effectively

YNAB’s target tools make your wish list real—by helping you plan, track, and follow through on your savings goals.

Why Traditional Savings Often Fall Short

We’ve all said it: “I’ll start saving when things settle down.” Or, “I’ll use whatever’s left at the end of the month.” But somehow, there’s never anything left.

That’s why at Master Budget Coaching, we help clients flip their thinking. Instead of waiting for “extra” money to show up, we use YNAB’s built-in savings target features to create intentional, proactive savings habits that actually work.

What Are Savings Targets in YNAB?

In the latest version of YNAB, there are three types of savings targets you can apply to a category. Each one serves a specific purpose and helps you answer this fundamental question:

“How much money does this category need—and when?”

Here’s a breakdown of the three types:

  • Set Aside Each Month: Add a consistent amount every month (e.g., $100/month for car maintenance or $50/month for holiday gifts)
  • Refill Up To: Keep the category topped up to a certain balance (great for groceries, gas, or clothing—expenses that fluctuate)
  • By Date Goal: Save a total amount by a specific date (e.g., $1,200 for a vacation by June 1)

YNAB guides you with prompts and progress bars. You’ll always know if you’re on track—or need to adjust.

Matching the Right Target to the Right Goal

1. Set Aside Each Month

Perfect for predictable, recurring expenses. Think:

  • Annual memberships (e.g., Amazon Prime, YNAB itself!)
  • Home maintenance
  • Birthdays
  • Holiday spending

Even if the expense isn’t monthly, the savings can be.

2. Refill Up To

Use this when the category gets used frequently, and you want it to maintain a healthy buffer. Best for:

  • Groceries
  • Household supplies
  • Pet expenses
  • Clothing

It helps prevent category depletion and makes spending more predictable.

3. By Date Goal

This is the best choice when your goal has a deadline. Great for:

  • Travel or vacations
  • Insurance premiums
  • Tuition payments
  • Big-ticket purchases (like a new mattress or appliance)

You’ll know exactly how much to save each month to hit your deadline.

Real-World Coaching Example: Planning a Trip Without Stress

One client, Andrea, came to us overwhelmed. She wanted to save for a summer vacation and build an emergency fund—but never felt like she had enough for either.

We helped her set up two categories:

  • “Vacation 2025” with a By Date Goal of $2,400 by July 1
  • “Emergency Fund” with Set Aside Each Month of $150

YNAB guided her monthly contributions and tracked her progress. When she reached her vacation goal a month early, she kept going—and doubled her emergency fund in the process.

“It was the first time I saved without guessing. I knew exactly what to do every month.”

Common Mistakes to Avoid

Using targets is powerful—but misusing them can cause frustration. Watch out for:

Too Many Targets

It’s tempting to create 20 different categories with savings goals. But spreading yourself too thin dilutes progress. Focus on 3–5 key priorities at a time.

Mismatched Goal Types

Using “Set Aside Each Month” for a vacation will leave you short. A “By Date Goal” would give you a defined end and pacing.

Ignoring Prompts

YNAB tells you how much to assign. If you skip those prompts repeatedly, your goals fall behind—and that builds friction.

Use YNAB’s Five Questions to Prioritize Targets

YNAB’s updated methodology is built on five core questions. Two of them are essential for savings:

  • What goals, large or small, do I want to prioritize?
  • What can I set aside for next month’s spending?

These two questions shape your future. Targets give those answers structure.

Want help applying them? Here’s a breakdown of the method:
➡️ YNAB: The Method Gets an Update

Final Thoughts: Make Saving Intentional, Not Accidental

The difference between financial stress and peace of mind isn’t willpower—it’s structure.

YNAB’s target tools make saving actionable. They shift your mindset from “maybe I’ll get there” to “I’m already on my way.” Whether you’re saving for travel, safety, or fun, your spending plan should reflect your future—not just your present.

About the Author

Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.

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