Monthly subscriptions question

Hello,

I have several monthly subscriptions (gym, Netflix, etc..)that are automatically charged to a designated credit card.  I pay the credit card in full each month.

I have a budget area called monthly subscriptions and plan to budget the amounts of each subscription each month.  I also have the credit card I use on my budget.  
 

How would I budget for the subscriptions, and then also budget for the credit card payment I make?  It seems that I would have each subscription amount listed, then the same amount listed for my credit card payment as well, which would double the amount budgeted.  
 

Help?

 

Ben

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  • Assuming you're budgeting in full for your purchases, YNAB automatically sets aside that amount for your future credit card payment. So there's no need to double budget. =)

    For example, say you have a $15/month Netflix bill:

    -- You start by budgeting $15 for it in the Monthly Subscriptions category, which brings the Available amount up to $15.
    -- When the bill hits your accounts, and is categorized to that category, the Monthly Subscription Available will drop to $0
    -- YNAB moves that $15 to the credit card category, increasing the card's Available amount.
    -- You now have $15 set aside to pay off the next bill.

    If you regularly pay your bill in full and you have no debt, the "Available" amount should always match up with your credit card balance. (For example, if your credit card balance is -$500, you should have +$500 available for payment). You only need to budget additional money to the credit card if you are paying down unbudgeted debt, or overspending from past months.

    This article explains how credit cards work and how the money flows: https://www.youneedabudget.com/how-to-manage-credit-cards-in-ynab/

    This article might be helpful as well:
    https://docs.youneedabudget.com/article/1525-when-you-pay-your-card-in-full

    Hope that helps!

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