Overspending in Dec not showing in Jan

A 12/30 transaction came in today for $12 which caused December's Dining Out to be orange; yes I overspent by $12. But in January budget, To be budgeted is still green and at the top it even says "-$0.00 Overspent in Dec". I was expecting it would say "-$12.00 Overspent in Dec" and my "To be budgeted" would be red and -$12 instead of green and $0. Or maybe my credit card line would be orange/red and tell me I have overspent, and I need to budget more to it to have enough for the payment.

 

Playing around with it, I tried repeatedly deleting and undo-ing that $12 transaction to see how it would affect January. The only difference I saw was that my credit card balance changed. Nothing in the budget moved or changed colors. That seems wrong, ynab is silently lowering the amount I have available for CC payment without forcing me to bump it back up by taking that $12 out of another category in January. Sure, if I look at the December view I see the orange indicator, so it's not silent there. But it's January now and I should be fixing my budget in January not December. Why is ynab not rolling over this overspending?

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    • WordTenor
    • I have the honor to be your obedient servant
    • WordTenor
    • 1 yr ago
    • 4
    • Reported - view

    Credit card overspending is absorbed as debt on the card; that is why it is a different color in the base software than cash overspending. The assumption is that you looked at that overspend and decided not to use other money in your budget to cover it, so you must have intended to incur debt on the card. 

    You can fix it either by correcting the overspend in last month (preferred) or by budgeting $12 to the card category in this month. 

    Like 4
  • Overspending on a credit card just does not transfer the money to your credit card payment category. The CC payment category will not show as overspent unless/until you make a payment that is larger than the amount available for making the payment.

    If you let CC overspending carry over to the next month, you are telling YNAB that you aren't planning to pay off that overspend.  So either cover the overspend in the month it happens so the money moves into the CC payment category or you have to manually budget toward the CC payment to make up for it if you intend to pay it off.

    Like 1
      • WordTenor
      • I have the honor to be your obedient servant
      • WordTenor
      • 1 yr ago
      • 2
      • Reported - view

      nolesrule Jinx. 

      Like 2
  • Alright. I get it. Thanks

    I'm new here so may well be wrong about this, but I'd say there is room for improvement here. It's great that ynab shows my Dining Out CC overspend as orange in December. However for this small window of time where the month has rolled but old transactions continue arriving in against the previous month, people will miss that orange unless they go looking for it because the default month view has changed. Given the toxicity of CC debt I'd suggest ynab also finds a way to show orange somewhere in the current month for that unaddressed overspend in last month for those of us who want to be held accountable.

    Like 1
      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 yr ago
      • 2
      • Reported - view

      Violet Transistor You're not wrong. use the third party YNAB toolkit which does provide an indicator when the balance and the payment amount no longer match.

      Like 2
  • If you do not have any pre-existing credit card debt and never (ever) intend to carry a balance on your credit card, I enthusiastically recommend setting up your credit card as a "Checking" account type in YNAB. That will prevent you from accidentally accruing debt; any unresolved overspending from a prior month will carry over as "Overspending" and be subtracted from your cash balance.  

    But if you do need to manage credit card debt in YNAB (and/or wish to continue using the "Credit" account type), the toolkit browser extension can help improve your awareness and avoid the kinds of pitfalls you recently encountered. 

    Good luck!

    Like 1
  • nolesrule said:
    YNAB toolkit

     Which option in YNAB toolkit to I need to turn on to see it?

     

    bret said:
    I enthusiastically recommend setting up your credit card as a "Checking" account type in YNAB

     I did consider doing it. Credit cards seem to be awfully confusing. But are there any downsides to this option?

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    • Tomato Tape Paid In Full CC Assist in the Toolkit.

      The only potential downside to representing your CC with a checking account is exactly it's strength -- it's impossible to float anything with debt. Any overspending is taken out of next month's TBB. Reimbursements, for instance, should use an approach suitable for cash transactions -- namely, that spending should be budgeted for up front by enough to keep the category positive.

      If you ever do need to float a purchase, it's a simple matter to balance-transfer back to a real credit account. When paid-in-full status is restored, balance-transfer to the checking account representation.

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