One Month Ahead Budget

[Disneyluv111]

Hi friends,
I have been googling online for more information on this month ahead budget that a lot of people are doing. I can't seem to understand it.
I am currently using a YNAB software and looking at it, I think we are a month ahead. If you have a "good" savings and can pay the bills whenever you want, isn't that the same?

Can someone clarify for me how this "one month ahead" works? Thank you so much!

 

[Where'sPiglet?]

When using YNAB, you're one month ahead if paychecks in September are used for October spending. Since you already seem to have a buffer, it may just be a matter of semantics in how you enter it into YNAB.

When I started using YNAB at the beginning of this year, I designated a month's worth of income from savings as "income for January" in YNAB. My two January paychecks I designated as "income for February" and so on. The rest of the money in my savings was designated for various rainy day funds in YNAB.

I think the difference also involves spending with a purpose. When you are entering funds as income for the next month ahead of time, you know exactly how much money you have available to spend during that month. When you are spending from a buffer in savings, it's easier to have spending creep, and the buffer can erode.

The budget is the plan, the tracking is your accountability to that plan. I do think there is a subtle difference to just paying from savings whenever and being one month ahead. However, I have no doubt that there are differing opinions on the topic!