I’ve just reset my budget, added all my credit cards, loans & overdrafts and bank accounts. It’s now come up with a -£1496.72 to be budgeted in bright red at the top of the screen even though all categories are set to 0 and nothing’s been budgeted yet.
I know it means I havent got any money to budget yet but how do you show what credit you have left to use to manage bills moving forward?
I get the whole idea of YNAB & not adding to credit but sometimes it’s where people start & need to get out of this habit first!
Hi Cyan Boat,
You can't show credit available, because it is not "money" you have available to spend. If you have already spent on the credit cards, your To Be Budgeted should just show $0...even if you continued to spend on your credit cards. BUT, the amount in the register for that card would show a negative (i.e. the amount you owe).
I suggest making a Fresh Start and accurately inserting the balances of all your accounts. If you have any money in your checking and savings accounts, this will show up green in To Be Budgeted. You will need to allocate this to categories in your budget (e.g. if you have $1000 in savings and $500 in checking, you should allocate the $1000 in savings to a savings category in your budget. You should allocate the $500 in your checking to categories you are planning to spend the money on. If you had $0 in cash, your To Be Budgeted should be $0).
Any amounts you owe on credit cards will show up in the account register as negatives (i.e. the balance on those cards). If you continue to use the cards, you allocate that spending to the appropriate category in your budget. That category will show a negative with a card icon next to it. The amount spent will increase the negative amount in the credit card account register (i.e. increase the amount you owe on the credit card).
Hope that helps.
You know you're going to spend on overdraft credit, so it only makes sense to include that in the spending plan (a.k.a., the budget). You also need a way to plan/budget your way out of using that credit over time.
Full details about using YNAB in this fashion are here: