Credit Card flagged as Overspent, but all transactions are budgeted for - I'm confused!
Long time YNAB4 user who finally took the plunge to switch to YNAB as a 2019 resolution.
I was able to migrate all my data successfully, but did not choose to do a Fresh Start after the migration. The migration seemed to go smoothly and I could reconcile most of my balances including the To-Be-Budgeted number.
However, earlier this week I was suddenly prompted in the YNAB app that I had overspending on one of my credit cards. Here are the details that I saw at first:
However, when I tapped on "Activity for Jan" option, I got a set of details that has left me very confused:
As you can see it says the 99.87$ of spending on the card has been budgeted for. Further, a quick calculation shows that the 150.42 of "overspending" can be calculated by taking the +250.29 on 1/8 (minus) the -62.36 on 1/5 and -37.51 on 1/1. This doesn't make sense to me but it's almost certain I've made a mistake somewhere.
Could someone please help me figure out what I'm getting wrong?
You paid $250.29 on Jan 8, of which $99.87 was spending recorded in new YNAB and is therefore budgeted for.
Of the remainder, are the categories you spent from on your cc $150.42 up? If this is the case you will need to transfer the sums from you your spend category/categories to the credit card category.
the good news is that as you move forward in new YNAB you won’t have to worry about this again if your credit spending is covered by the categories you spend from.Reply
Hi Average Geek !
I think satcook is right, if all of your expenses we're budgeted for, I think the Starting Balance is the culprit! If you had an outstanding balance on a credit card when you set it up in YNAB, and you paid that in full but didn't budget for it in the Credit Card Payments category, it'll show your Credit Card Payment category as overspent. Budgeting for that balance in your Credit Card Payment category lets the budget know you plan to take some of the money you have and use it to pay off that existing balance. Here’s a video explaining how this works.
I hope that helps!Reply