Positive Credit Card Balance inflating TBB?
I've been scratching my head over this for a few days.
1) This month, I paid an auto insurance premium that I've been using a Target Balance goal to budget the payment. What that means is that I've been budgeting for the payment for the last few months.
2) Before this payment happened I budgeted my TBB down to $0. After the payment, it's in the green. Way in the green. The transaction is categorized correctly and completel budgeted for.
I have some overspending this month, so I would expect that amount + TBB to be the amount of the insurance payment. It's really close, but not quite. I'm not sure if that last part is relevant.
3) I've verified the balances of all my linked accounts, but the Funds for Oct line seems too large to me. This article about positive credit card balances leads me to believe me TBB is being effected by that.
Am I budgeting for annual expenses incorrectly? Or is YNAB doing something wrong? I'm not sure how to get a handle on my budget for this month until I can trust that TBB amount.
I'm not sure where a positive credit card balance would play in here? Do you mean your account balance or the credit card payment category? Did you pay your insurance with a credit card? Positive credit card balances affecting TBB has to do with paying too much to your credit card so the account balance goes positive. Do you have a positive account balance?
There is missing information here. More details on what you did would be helpful. Maybe a screenshot of the transaction for the insurance and what you're looking at that doesn't make sense.
So, are any of your CC accounts positive? (Not to be confused with the CC Payment category.)
Bottom line is that if your accounts match the real world balances, all the money in the budget is also real.
Funds for Month is often confusing because many things are included. Of the top of my head:
* Last month's TBB
* Last month's Budgeted In Future
* Income received this month
* Positive CC account balances (at any point during the month)
* Starting account balances this month
It's not uncommon for FFM to be twice your monthly income, and possibly much higher if you just started.
I have some overspending this month
If any of the overspending is red, move money to cover it ASAP. While it is present, you do NOT have all the money your categories/TBB say you do (in spite of my earlier comment).
I pulled this list from another topic
+Funds for [This Month] is the total of:
- the amount leftover in To be Budgeted from last month
- the amount Budgeted in Future from last month
- all Inflow:To Be Budgeted transactions for the current month (including from Reconciliation Balance Adjustments)
- any Starting Balance transactions with a date in the current month on cash accounts (not credit card accounts)
- any positive credit card balances in the current month
- any cash advances from a credit account to a cash account in the current month
This is really helpful, and when I total all these things, everything adds up.
It seems like the credit card transaction and the positive payment category are a red herring.
However, I'm still really struggling with the scenario where, in the latter half of Oct, after receiving a paycheck and paying off my credit cards for the month, I had budgeted down to $0 TBB. Then, without any further income, I have +$600 TBB at the end of the month. How does that happen?
Wanted to circle back to this.
I never was able to figure out where the surprise income came from, but I've verified all the balances, transactions, and budget items for October. I've decided to trust that YNAB is giving me the correct numbers and move forward. The only other thing I could think to do would be to start a new budget from scratch, but I don't think I would get different numbers at this point, based on all the homework I've done.
Thanks for all of your help. If nothing else, I feel that I've learned more about how YNAB does its thing.
I'm really confused about this. Should I not be "budgeting" any money towards the credit card payment I have this month?
If the money I budgeted & spent for things like groceries gets pulled over automatically, then the "payment" column for credit cards basically is just an indicator of what the next payment will be, right?
What's odd for me is that my actual credit card balance and the "Payment" column are not the same. Should they be?
Slate Gray Storm said:
Should I not be "budgeting" any money towards the credit card payment I have this month?
It depends. Are you trying to pay down credit card debt? Then yes you should be budgeting to the credit card payment category to pay down the debt. Same if you are living on the float (see my post above).
but the category doesn't help me with anything, and the numbers frequently haven't matched in the past for no apparent reason.
The fact that they don't match is useful information. It means that something is out of whack and needs to be addressed.