# Getting Out of Overdraft

> One of YNAB's fundamental concepts is to plan using only the  money you have right now, but what if your accounts are negative? That's okay. We can help!

Source: https://support.ynab.com/en_us/getting-out-of-overdraft-in-ynab-a-guide-B1blkysC9

Last updated: 2026-09-03T20:00:54.932Z

Establish a plan to escape overdraft by categorizing expenses and setting targets and scheduled transactions in YNAB. Learn how to track your spending and what to do if you find yourself in overdraft again.

#### Already have a YNAB plan?

If your bank account is negative, follow the steps in this article — tighten up your plan, track your spending, and only assign once new money actually shows up in _Ready to Assign_. If it seems like you need some big shifting in your priorities, it may be a good time to [make a Fresh Start](https://support.ynab.com/en_us/making-a-fresh-start-a-guide-HkXYR_c0q).

If your real-life bank accounts are positive (**not overdrawn**) but Ready to Assign is negative, this article may still provide helpful information. In addition, review [these solutions for overspending and overassigning](https://support.ynab.com/en_us/when-ready-to-assign-is-negative-an-overview-HylZA0zCc).

#### In this Article:

[Create Your Plan](#plan)

[Track Your Spending](#track)

[Assign New Money](#assign)

[What If I Go Back into Overdraft Again?](#backagain)

[Want Some Personalized Help?](#help)

* * *

## Create Your Plan

This plan is designed for temporary overdraft on a checking account. If your spending account is always negative due to a permanent overdraft facility or all-in-one mortgage, this long-term overdraft requires a special [Negative-Balance Offset Account Setup](https://support.ynab.com/en_us/negative-balance-offset-account-setup-HkPKvOCc)! 

The first thing you'll want to do is to create a plan by [adding your expenses into categories](https://support.ynab.com/en_us/adding-removing-and-customizing-categories-a-guide-HJFO5j909) and [setting up target](https://support.ynab.com/en_us/how-to-use-targets-rk5kkI9ks) amounts. Targets tell your plan how much you want to dedicate to a given expense. The more detailed you can get, the further you'll think ahead and the easier it will be to get on top of your spending. If you haven't fully thought through your categories and added targets to each one, do that now! It's okay if you can't remember each expense—you can still add categories as they come up—but the more you can plan for, the better. 

### How to Create Your Plan

1.  Create a category and target for each of your expenses.
    
2.  Create a repeated [Scheduled Transaction](https://support.ynab.com/en_us/scheduled-transactions-a-guide-BygrAIFA9) for each bill. This is helpful to do even when you've already set up targets, because you'll get some additional information about the Scheduled Transaction within the category itself.
    
3.  Now it's time to consider how realistic your plan is. If you're in the web app, you can find exactly how much money you would need to fund every category that you set a target or Scheduled Transaction for. With no categories selected, look at the [Underfunded](https://support.ynab.com/en_us/underfunded-a-guide-BJwPhQO09) amount in the Inspector (or right sidebar). Based on your monthly take-home income, can you actually afford your plan?
    
4.  If not, that's okay! By identifying that your expected expenses are more than what you can realistically afford, you've already saved yourself some financial stress. From here, **proactively adjust your target amounts until your plan better matches your income**, and then check it against your priorities.
    

At this point, your plan should be full of useful information, even though you haven't assigned anything yet. **Don't let the yellow or red in the Available columns worry you** _–_ the color is there as a guide and will help you move forward. 

![Plan showing overdraft message at top and available amounts with red and yellow overspending](https://cdn.bfldr.com/NIEXAZS5/at/m3x57g9k7t5chfcv3mqvs5/Overdraft-Plan-Create-Your-Plan-Web-Help-Article.png)

You'll also notice the balance of the overdraft account at the top of your plan in red with a warning that says: "Overdraft? We can help with that" and a _Next Steps_ button. For now, you can **ignore the button that says _Next Steps_** (you're taking those steps now!). After you're out of overdraft, that button will change to help ensure that you're only working with the money you currently have on hand. And once your overdraft balance reaches $0.00, this warning banner will clear on its own.

[Back to Top](#backtotop)

* * *

## Track Your Spending

Once you've got your plan laid out, you're already off to a good start! If you haven't already done so, you can [add your other accounts](https://support.ynab.com/en_us/how-to-add-an-account-ByoxswMJs). Start [recording your spending](https://support.ynab.com/en_us/how-to-add-transactions-in-ynab-HyDwA_byi) as it occurs. Before you spend, look at the other priorities in your plan and ask yourself, "Is this purchase absolutely necessary?". 

### Spending When in Overdraft

If you do need to spend in your overdrafted account, you'll notice red in the spending category's Available column, which represents cash overspending. If you spend out of a Credit Card account, you'll notice yellow which represents credit overspending. These negative numbers are just telling you that you haven't covered that spending **yet**, but once some income comes in, we'll cover that spending. 

You'll also notice a warning about overspent categories. The warning appears in [Focused Views](https://support.ynab.com/en_us/focused-views-a-guide-BksnNYqLh) on the web (Overspent view) and on mobile as a banner displaying “Cover \[#\] overspent categories". You can select that to review all of your overspent categories in one place, but if you try to cover the overspending, YNAB will tell you that there's no money available. You'll be able to use this banner once you're out of overdraft to address overspending as it happens. 

If an expense comes up that you didn't anticipate in your original plan, don't fret! You're learning as you go! Add a new category that fits that expense, and then categorize the relevant transaction there. That way, you'll be able to anticipate it in the future.

As you spend, your goal is to keep the negative figures in the Available column as low as possible. The less you spend now, the less you'll have to cover with your next paycheck and the more you'll have left to assign to future expenses. 

### Wait...Where Did the Overspending Go in a New Month?

If [a new month begins](https://support.ynab.com/en_us/when-the-month-rolls-over-a-guide-rkyyd6qC9) before you're paid again, your Available amounts will reset to $0.00 in the new month. Last month's (red) cash overspending will be summed and added to the outstanding balance at the top of your plan, and (yellow) credit overspending will be added to the balance of your credit card. This monthly "reset" will still keep you accountable (by the red number at the top).

[Back to Top](#backtotop)

* * *

## Assign New Money

When income is deposited into your overdraft account, it will first go to covering the overdraft debt you owe, plus any fees.

### How to Assign New Money

1.  Record the income in YNAB as a transaction categorized to _Income: Ready to Assign (_called _Inflow: Ready to Assign_ on Web_)_. It will first cover the overdraft debt, and then you'll find any remaining funds at the top of your plan in _Ready to Assign._
    
    ![500 dollar income transaction categorized to Ready to Assign](https://cdn.bfldr.com/NIEXAZS5/at/wqbt9xvmmctj6j6s3q95xb2x/Overdraft-Plan-Income-Inflow-Web-Help-Article.png)
    
2.  To assign the remaining money, you can use [Auto-Assign](https://support.ynab.com/en_us/auto-assign-a-guide-r1gBNbBJo), or you can assign money to each category yourself. If you're doing the assigning, follow these steps:
    
    1.  Cover any overspending first by assigning money to those overspent categories. That money is already "spent" (or is due to your credit card company), and we want that to be reflected in YNAB. Be sure to stop when _Ready to Assign_ reaches zero.
        
        ![Auto Assign window in mobile app showing money assigned to overspent categories](https://cdn.bfldr.com/NIEXAZS5/at/k7vq7pmhv9g4tr3s2vtgh8v/Overdraft-Plan-Auto-Assign-iOS-Help-Article.png)
        
    2.  If you have money left after covering the overspending, using the targets you set up when creating your plan, ask yourself, "What does this money need to do for me before I get paid again?" Again, make sure to **stop** when Ready to Assign reaches $0.00.
        
        ![Auto Assign window in mobile app showing remaining money assigned to Monthly Rent category](https://cdn.bfldr.com/NIEXAZS5/at/rw6f5shrffskbsb33wn7cjm/Overdraft-Plan-Assign-Zero-iOS-Help-Article.png)

Now you have a plan for the dollars you have on hand. Next time you're deciding whether or not to make a purchase, use your plan to make that decision. Is there money available in that category? If not, and you find your priorities have changed, that's okay! [Cover overspending](https://support.ynab.com/en_us/overspending-in-ynab-a-guide-ryWoxEyi) or [move money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) from another category, and you'll be back on track.

[Back to Top](#backtotop)

* * *

## What If I Go Back into Overdraft Again?

If you end up going back into overdraft, lean into tracking your spending and keeping the negative figures in the Available column as low as possible. Question your spending as you track and you'll find places to cut. It's important to only spend on your most critical expenses until the overdraft is gone, so you don't end up paying money in fees that you could be using for your expenses. Less red lets you know you're making progress!

Once you're paid again, you'll repeat the process above. Eventually you will make it **permanently** out of overdraft, which is a huge accomplishment! What's next? We suggest you start getting ahead on your larger non-monthly expenses that you know are coming, but you may or may not know when. Create categories for the expenses that tend to catch you off guard (such as a semi-annual insurance payment or a car oil change/repair), and next time they come up, you'll have money waiting to pay your bills, instead of bills waiting for money.

[Back to Top](#backtotop)

* * *

## Want Some Personalized Help?

We know getting out of overdraft can be a challenge, and we're here to help. [tell the chatbot you need a human or send us an email](https://support.ynab.com/en_us/how-to-get-help-SygqcvtC5), and one of our support specialists will assist you with your plan. We're here to help you be successful with YNAB, so don't hesitate to reach out!

[Back to Top](#backtotop)

* * *

## Help Us Help You!

Our Knowledge Base team reviews article feedback responses weekly, and we actively revise these articles to make them as helpful as possible. That's where you come in! Our articles are scored based on the _Yes_ or _No_ ratings received below. We also collect freeform feedback for any _No_ ratings (so our team can focus in on what you were specifically searching for!).

**Success**: Found what you were searching for? It would be super helpful if you click _Yes_ below.

**Suggestions**: Didn't find what you're searching for and you'd like to share what terms or topics you wanted? Click _No_ below. You'll then be able to submit your feedback about this article. **Please note:** the feedback submissions are anonymous, and we’re not able to respond, so make sure to use the next option if you have a specific scenario or question you would like a response to.

**Support**: If you have a question or would like a response to your specific question, [tell the chatbot you need a human or send us an email](https://support.ynab.com/en_us/how-to-get-help-SygqcvtC5) to ensure that your message gets to our Support team!