How to Use YNAB’s Notes and Flags Like a Pro
Enhance visibility and make your categories work smarter for you.
Why Notes and Flags Are Underrated Tools
When most people think of YNAB, they picture categories, dollars, and the “Ready to Assign” balance. But tucked within every category and transaction are two powerful features: Notes and Flags. These tools can dramatically improve clarity in your spending plan—without adding complexity.
We often coach clients who feel overwhelmed because they’re trying to remember too much. Notes and flags solve that problem by allowing you to document plans, tag reminders, and create quick visual cues inside your spending plan.
What Are Notes in YNAB?
Notes are plain-text fields attached to individual categories or transactions. You might use them to:
- Record due dates (e.g., “Auto-renews July 15”)
- Explain why a category exists (e.g., “Set aside for Cancun 2026 trip”)
- Add context for variable expenses (e.g., “Spending goal: $500/mo average”)
Unlike memo fields in transactions, category notes stick around month to month. That makes them perfect for long-term planning and visibility.
What Are Flags in YNAB?
Flags are color-coded markers you can apply to individual transactions. While they don’t have set meanings, you can create your own system. Examples we’ve seen work well:
- Red: Needs follow-up or review
- Green: Work reimbursement
- Blue: Tax-deductible expense
- Purple: Subscription to cancel
Flags help you visually organize your transactions so that nothing slips through the cracks.
How to Use Notes Strategically
Here are four ways category notes can help you stay organized:
1. Document Future Plans
Create a travel category labeled “Cancun 2026” and use the note to add key details:
- “Goal: $4,000 by May 2026”
- “Covers airfare, hotel, excursions, tips”
2. Track Due Dates for Annual or Irregular Bills
Instead of creating a calendar reminder, put a note in your “Auto Insurance” or “Property Tax” category:
- “Next payment due October 1”
- “Renewal auto-debited—check new premium in September”
3. Explain Unusual Categories
Clients sometimes create a category with a vague name like “House Project – Fall.” Add a note that says:
- “Budget for patio furniture, outdoor lights, and paint supplies”
4. Communicate in Shared Budgets
In couples or family budgets, notes can help partners stay aligned:
- “Saving for Jen’s dental work—waiting on final estimate”
- “Will cancel Disney+ in March”
How to Use Flags Strategically
Flags are best used for short-term organization, especially during:
- Monthly reviews
- Reimbursements
- Tax prep
- Spending audits
Real-Life Example: Taylor’s Reimbursements
Taylor uses her personal credit card for occasional work expenses. She flags each transaction green, then filters by green flags at month-end to complete her expense report.
In her spending plan, she has a “Work Reimbursables” category. She categorizes all work purchases there and moves repaid funds into that same category. The green flag is her tracking tool; the category is her budget control.
Flag Consistency Is Key
Create your own flag system, but keep it consistent:
- Stick to the same meaning for each color
- Review and clear flags once the task is done
Flags don’t carry over month to month—but that’s what makes them ideal for tracking current action items.
Notes vs. Flags: When to Use Each
| Use Case | Notes | Flags |
|---|---|---|
| Track category purpose | ✅ | ❌ |
| Document due dates | ✅ | ❌ |
| Mark reimbursements | ❌ | ✅ |
| Tag transactions for tax time | ❌ | ✅ |
| Remind yourself to cancel a subscription | ✅ | ✅ |
Final Thoughts: Make Your Spending Plan Work for You
At Master Budget Coaching, we believe your spending plan should be clear, useful, and tailored to your life. Notes and flags aren’t just “extra” features—they’re powerful tools for reducing stress and keeping your plan aligned with your goals.
Most clients who adopt these tools tell us they feel more in control. Not because they’re spending less—but because they finally understand what their dollars are doing.
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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