Deal with Yellow Overspending | Getting Started with YNAB | Lesson 5.3


(upbeat music) – If you see yellow in your budget it means that category is underfunded. It means you need to budget more money in that category. It’s not as urgent a
warning as red overspending but it is a friendly reminder that, that category needs your
attention when you can. Let’s see what that looks like in the app. There are a few reasons why category could be underfunded and marked in yellow. One is that you have a goal
that you haven’t met yet. In groceries for example, I have a goal to budget
five hundred dollars a month in groceries. But I’ve only budgeted three
hundred and twenty two so far. So I haven’t budgeted
enough to fulfill the goal. Once I do budget five
hundred, that available amount will turn green. And will be good to go. Same thing here in Christmas. I have a target balance goal
to save five hundred dollars by December. My goal target is one hundred
and twenty five dollars so to stay on track with that goal, I need to budget that much this month. But I’ve only budgeted sixty dollars. So that’s just a reminder to budget more to fulfill a goal. Another reason why you
might have a yellow alert is because you have some
upcoming transactions that you haven’t budgeted for. In this example I have a bill that’s coming up at the end of the month here, that’s gonna cost fifty dollars. But I’ve only budgeted
twenty five dollars. So why not just say “hey
you have a category here that’s expecting a bill.” But you don’t have
enough money to cover it. So I just need to budget
more there when I can. Lastly, you can see a negative
amount in transportation that is also yellow. If you see a negative
amount that is yellow that means credit overspending. It means you overspent not
with cash or a debit card or a check but with a credit card. And we handle credit
overspending a little differently than cash overspending, because it’s not quite as urgent. It gets a yellow alert because you haven’t overspent with cash so your budget is still
telling you the truth but if you don’t cover it, you won’t be able to
pay your new credit card debit in full this month. So you want to be sure to
cover that as soon as you can. And you’ll notice that
we have these icons here in the web app that let you know what’s
going on at a glance. But if you ever wanna know any more detail you can click on a
category and look over here to the right for some more information on what’s going on there. You’ll get the same note on mobile. So let me swap over to there. Just tap the category and then details. And look under warning
and that’ll give you more information on why
that category is yellow so you know how to deal with it. If you have some yellow in your budget don’t stress. That’s totally normal. Yellow isn’t bad. It’s just a reminder that that category needs some more money as soon as you’re able to. Remember, yellow means budget more. (upbeat music)

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