Sharing a credit card and receiving rent payment

Not sure if this is the correction section but I am completely lost atm. I hope I can explain this properly.I've been using YNAB for about a month and its been working fine, until now.  Here's the situation:

I pay for rent and utilities out of my checking account. On the first of each month, my boyfriend is to give me $600 to put towards rent.

I'm an authorized user on his credit card. We use that credit card for all shared expenses (groceries, eating out, household items, etc.) but we also use it for our own personal, non-split, items as well (this is to accumulate rewards points).  I have this account setup as a credit card account in YNAB that is paid off  on the last day of each month. I manually enter transactions. Any that are mine, I enter the full amount. Any that we share I simply enter my portion of the expense and categorize the expense properly.  The way we set this up originally was that he would pay the credit card in full and on the last day of the month I would give him my share for the charges that month and we would be squared away. What happens is that my share is always more than $600.  So what we do is that rather than go back and forth with transferring money to each other, I simply venmo him anything in excess of $600 on the 30th (or 31st) of each month and the next day, on the 1st, he doesn't send me the $600 rent stipend.

I have  run into a problem now because when I made my budget, I accounted for his $600. I just got paid yesterday. My next check will be on 10/11. I was able to budget for the entire rent, which I will pay on the 1st, and for a few other end of September expenses. I have about $250 left in To Be Budgeted. However, I have a car and insurance payment (about $400) due before my next check that I am unable to budget for. I have enough money to cover it in my checking account so I do not know where I went wrong.  When I began using YNAB all my account balances were entered in correctly so I'm not sure if I am missing a step somewhere.

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  • Gold Display said:
    I have enough money to cover it in my checking account

     I was following you up to this point. You should be checking your budget categories to see if you have enough to pay for something. 

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    • Khaki Storm I should explain this better. I have a second checking account that automatically gets money deposited from my check, enough to cover the car payment each month. As of today, I have more than enough to cover my car payment next week. But I don't have the full amount of the payment in To Be Budgeted in order to fund my car payment category for October. I am not sure if I am supposed to record the $600 that my boyfriend is contributing as income. My plan was to simply create a $600 dollar inflow in the Credit Card account, and then just simply transfer the remaining balance from my main checking account to payoff the difference. 

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      • Khaki Storm
      • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 11 mths ago
      • Reported - view

      Gold Display That sounds complex.  dakinemaui has a good idea on the budget side. On the 2nd checking, one of the powerful things about YNAB is the control of what the money does is in the budget and not the accounts. Myself and others usually reduce the amount of accounts and consolidate into a single checking and single savings account. There's a good article here: https://www.youneedabudget.com/the-relationship-between-your-budget-your-accounts-its-complicated/

       

      Also, on the shared credit card, just some recent experience from a close friend, if you're paying the BF the amount you spent on the card, you need a way to make sure that money is being paid off on the card and that BF is paying off his balance on the card. That could be checking the balance yourself or something like Credit Karma that shows the credit reports each month. Sounds harsh, maybe even unwelcomed, but if it's a joint card then the the payments or lack of payments (debt build up) are your responsibility too. My close friend learned blind trust isn't good in this exact situation (lots of debt now, card wasn't paid) and doesn't build real authentic trust. I like this short article on trust: https://syncerityspeaks.com/understanding-trust/

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  • Inflow his $600 directly into a Boyfriend category. As you pay for things from your account(s), categorize his portion to that category (probably using a split transaction). For example, an $800 rent outflow might be split to categorize $400 to your Rent category and $400 to the BF category.

    I would not put his CC in your budget. You would then have to account for all HIS expenses. Your budget, your spending. 

    (At some point, you may switch to a joint budget, but you don't seem to be there, right now.)

    Your expenses (or portion of joint expenses) that are on his CC -- again, not in your budget -- should be recorded as a net $0 split transaction. (Net of $0 because no money left YOUR accounts. Your budget, your accounts.) It's a split because you need to update the BF category as well as your spending category.

    For example, you buy $100 of Groceries on his CC. This is recorded as:

    Split 1: $50 outflow categorized to Groceries (your portion needs to impact your budget)

    Split 2: $50 INFLOW categorized to BF (increasing what you owe him)

    Net: $0

    At the end of the month, Venmo him whatever is left in the BF category.

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