Credit card usage question


Trying to understand how I should set up YNAB. Basically I have a very low amount in my checking account (like 40 dollars) and expect to cover my expenses till I get payed using my credit card.  How am I supposed to set up budgets? Lets say I give myself 100 dollars for food, which I plan to use my credit card for, it says i've over budgeted (only 40 available).  

Basically looking over my expenses I know I will have to use my credit card for 500 worth of expenses before i get payed again. Do I overbudget and leave my numbers in the red? 



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  • No, you budget until your TBB is zero. If you over-spend on the card, it'll turn yellow, meaning it'll be increasing your debt.

    Once you get paid, your TBB will be positive again, and you can then budget as normal (remembering to budget something towards paying off the debt you'd incurred before you got paid).

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  • Are you able to pay at least the statement balance on your CC each month or do you have more debt than that?

    Assuming the former, then you would be riding the credit card float. This link will tell you how to do that safely by planning your spending with both cash and credit, and with a path toward improvement (getting to paid-in-full CC status):

    The short answer in your case is to reduce what you've budgeted toward the CC Payment category by $500. (If that's currently $0, then budget -$500.) Use these funds to plan your upcoming spending in the budget.

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