Credit card in two currencies and in 2 different budgets
I have started using 2 budgets, a main one for pound sterling and an additional one in euros.
The UK one is my main budget, where all my cards and accounts are listed. My only issue has been on how to balance the credit card, which I can use in EUR, but is paid in £.
I added the card to the EU budget, as I want to enter transaction in their original currency, but the balance is negative and I am not sure if I should transfer ' fake' money into it to balance it out or make it a non budgeting account.
One general guideline is that a given real-world account should not be in more than a single budget. (Otherwise, there's a slew of transactions that don't apply to that budget, often causing a great gnashing of teeth.)
In your case, I think the single budget would work better. You might look at one of the add-ins to help enter the equivalent GBP for a purchase in EUR on the card. Or you could just estimate it and periodically reconcile to remove the (hopefully) small discrepancy.
Another thing you might consider is setting up a text alert set for your CC account purchases. This would probably be listed in GBP for easy entry on the go with the mobile app.
Put the UK bank into the Euro budget, but use the EUR equivalent for the balance both for the initial as well as reconciliation. Any GBP transactions that happen (e.g., rent at home) should also use the equivalent EUR value in the EUR budget.
The other option is to transfer enough to fund the trip to a separate EUR account and put this on budget.
This was very promising at one point. It may have moved beyond the beta stage by now.
Since you want categories in EUR, you would need a new budget based on the Euro. Your UK account would be the "foreign" account.
Hi Pink Drum !
I'd add the credit card as a budget account to the budget where you plan to make and budget for the purchases. In the other budget, I'd add it as a Tracking account. This way, you can budget for credit card transactions and enter them like normal, while still keeping an eye on the balance of the account in the other budget. This way you won't be prompted to budget for the credit card transactions in both budgets (just the one where you're using it) and you can adjust payments to the card so that it accurately reflects the balance in each.
We have a few more tips listed in The Digital Nomad’s Guide to Budgeting in Different Currencies that you might find helpful! :)