Credit Cards... WOW this makes me want to give up every day
I need more resources to figure this out.. I've listened to the ynab videos and the youtube videos and just when I think I understand I can't get my budget to work... I can't ever trusted my 'to be budgeted' and nothing ever makes sense to what is in my actual checking account... ARGH!!!! Where do I go from here? Is there personal 1:1 coaching here?
See above.... Why do I need to budget $4291 in Chase when my balance for the card only has $-1,998 ??? Same for my other accounts... I also have 'yellow' categories below that I haven't put money in to cover (they are on the credit card and I'm floating) Is this messing up the credit card numbers?
Thanks all... There are so many credit card questions i see in the forum it seems people need dedicated support here.
You sent money to the credit card that was not set aside. Now you need to move money from other categories to cover what you sent.
Before making a psyment on your credit card you have to look at what is in the available bubble. If there isn’t enough there, then you need to budget money there until there is enough.
If you arent naking budgeted purchases then ynab doesnt set aside money to pay the card
You've made purchases in categories that you haven't budgeted enough money to. So you're adding to your credit card debt. For example, if you spend $100 on dog treats paid for via credit card but you've only budgeted $20 for dog treats, YNAB can only put $20 to the credit card account on the left but the full $100 is added to the big red number on the credit available in the credit card category. To get that number out of red, you need to move money from wherever (savings or WAMing from other funded categories) to the categories which have the yellow and credit card symbol. If you're on mobile, I think it shows up differently but I am not familiar with the app.
So the idea is to budget only money that is in TBB and then you need to only make purchases you have budgeted money for. If you don't have money in the dog treat category, you'll need to move money from Friday night date night or savings or whatever. Once you're only spending money that you currently have budgeted, you will not be accruing additional credit card debt, and thus the number in the credit card on the available payment category top right will be green. It won't match the number on the left, in the credit card account, until you've paid off any credit card debt and have moved off the credit card float. To do that you would put money available in TBB in the budgeted column for each credit card and pay that much extra to your credit cards on top of the money that you have spent that was budgeted for. Moving off the float means that you could pay your entire balance on the card today instead of only the balance from the last statement balance. Float means that you are using today's dollars to pay for last month's purchases.
I ended up pulling money out of sinking funds to get off the credit card float since i didn't have credit card debt, otherwise it would have taken months. Now that I am off the float, my number on the left and the number in the credit card column match.
Honestly, Handling the credit cards was the hardest thing for me to grasp. I didn't understand how the money moved. I felt like I was searching for a needle in a haystack. I've attached a video that I came across during the free 34 day trial that really help me to understand how credit cards are handled YNAB. After watching his other beginners guide to YNAB I was able to get set up very quickly. I have no association with this guy or anything affiliated with him. I just thought it might save you some time and frustration. BTW, I no longer move allocated money from categories to cover credit card payments. That is handled within the transactions that are imported or recorded. Makes it super simple. Best of luck.