Using a Credit Card that you pay off monthly...
Hello! First time poster here!
Loving YNAB but I'm wanting to utilize a system where I charge as much stuff on my credit card as possible and then pay it off each month. The plan is to accumulate cash back and travel rewards.
What is a good way to do this using YNAB? I want to still operate with the budget and log transactions, just don't know how to structure and track everything.
Surely someone else has tried this successfully...
Bobby Austin I am not sure about other countries, but in Australia we have mortgage offset accounts. My savings account doesn't pay any interest, but it does offset 100% against my mortgage. For example, every dollar in my savings account reduces the total of my calculated mortgage interest payment, calculated daily. I buy absolutely everything on credit, including all my bills. Cash back and travel rewards are an added bonus, but in the 2 1/2 years I have been using YNAB, I have saved $2,500 in mortgage interest, and therefore reduced my mortgage by that amount, simply by using my credit card. My credit card has 55 days interest free. Do you have this type of offset account where you live?
I do this and was comfortable a few months after starting YNAB. Put all your cards on autopay. I have a interest earning checking & savings so I maximize keeping my money there, but no interest on my cards. I'm comfortable doing this because it all comes out of my budget at the time I spend on the cards.