Credit Card Budget?

There’s a similar post about this but mine has pictures, yay! So last month I made a big payment on my credit card. This month just $200. I have a goal set of $200 per month.


In the first picture I have $1,139.62 available, weird because I only budgeted $200 for the payment. 

In the second, I move that $1,139.62 to To Be Budgeted. Then all of a sudden I need to budget way more to meet my goal? I’ve met my goal of $200 this month. How does this make sense? It also says I budgeted way more than I actually did in Feb. I just budgeted $200, not $900!

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  • I’ve also gone through and cleared all the pending transactions. 

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  • The 1139.62 was carryover money from the payment category in January.

    I wonder if it's a pay goal or a budget goal? If you have a goal to Budget 200 per month, then the Budgeted column should be at least 200. If you pulled money out of the category, then your Budgeted number will be negative.

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  • Have you used the card this month for other purchases? If you have budgeted for that money in other categories, it will transfer the money to your credit card payment. The 200 might be above what you owe on your card from your spending. 

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      • Gray Beat
      • Gray_Beat.9
      • 7 mths ago
      • Reported - view

      PeculiarBella Crap, I bet that’s it. I did some spending on it this month for sure. 

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      • satcook
      • satcook
      • 7 mths ago
      • 2
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      Gray Beat any budgeted purchases reserve money to pay the card. You should send all the money in the available bubble to the card. 

       

      Then budget the rest rest of your TBB number so it is at $0

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  • For your current purchases, as long as they are covered by budgeted money in other categories, YNAB will move the money from the purchase category to the CC category to reserve that money to pay the card. You budget to the card category directly to pay back the previous debt you are carrying on the card. This previous debt might be a debt you were carrying previous to YNAB or debt from a previous month if you ever needed to buy something on debt while using YNAB.

    So if you budget $200 to your CC payment category and make budgeted purchases with your CC since the last payment to the CC, you can then pay for all the budgeted purchases  + what you have budgeted to reduce previous debt.

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      • Gray Beat
      • Gray_Beat.9
      • 7 mths ago
      • Reported - view

      Ceeses Ah, so since I budget for that purchase in another category YNAB reserved money from my TBB to cover that expense on the credit card? I guess it automatically budgets to cover purchases on the card as well as whatever I budgeted to cover paying off the card by my goal. This is confusing!

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      • dakinemaui
      • dakinemaui
      • 7 mths ago
      • 2
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      Gray Beat The budget is the plan for your cash. When you buy $50 of groceries on a credit card, you take on $50 in new debt. Immediately. You also still have that $50 that was backing the Grocery category (assuming no overspending), so YNAB helpfully reassigns the job of that $50 from "buy groceries" to "pay the debt incurred from buying groceries".

      Yes, you can also add to the amount available to reduce debt even further (over and above that automatically reserved for budgeted purchases). Do this by budgeting directly to the CC Payment category. One very common example is to reserve money to pay the balance a card has when you bring it into YNAB.

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  • Gray Beat said:
    YNAB reserved money from my TBB

     No, it takes the money from the category that was used for the purchase as dakinemaui explained. Your TBB should always be 0 unless you've just received income and haven't had the time to budget it yet. This means there is no money to take from TBB to cover the CC card.

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      • Gray Beat
      • Gray_Beat.9
      • 7 mths ago
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      Ceeses Sorry, I'm just not understanding 😕

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    • Gray Beat Hi there! As others have said, YNAB will never move money from To be Budgeted automatically unless you have cash overspending in one or more categories and the month rolls over. For budgeted credit card spending, money moves automatically from your spending categories to your Credit Card Payment category.

      That's in addition to any money you budget directly to the Credit Card Payment category to pay down a starting balance or existing debt.

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      • Gray Beat
      • Gray_Beat.9
      • 7 mths ago
      • Reported - view

      Matthew So is it telling me that I currently have $1,139.62 set aside to pay for the credit card?

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      • dakinemaui
      • dakinemaui
      • 7 mths ago
      • 2
      • Reported - view

      Gray Beat Yes, that's what the Available column means for any category. It is how much is available (set aside or reserved) to pay whatever that category represents. Rent, Electric bill, CC bill, whatever.

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  • Oh jeez! I've had that much set aside to pay on the credit card all this time and didn't even realize it.

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      • dakinemaui
      • dakinemaui
      • 7 mths ago
      • Reported - view

      Gray Beat YNAB sets aside money automatically for your CC payment with every budgeted purchase on the card. That's the only difference from all the other categories (where the budget value is the only way to increase the Available amount, aside from returns of course).

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