I would like to know your opinion (New budget and 3000 € in credit cards)

Hi!

Well i have YNAB on the past and i changed for a portuguese software because it's more cheap and because it's more easy to enter the transactions, but after one year i think YNAB it's best for me, because the way do the budget, and because it's online.

 

I want begin a new budget, and i have a big problem, i have almost 3000€ in credit card to pay, i pay every month about 200 € to pay them, but I go back to using them during the month 'unconsciously'.

I was making count's to make a effort and don't put nothing on saving's until May 2018 and pay in May the two credit cards.  Before i begin use de credit card ( my dog was very sick and i have to pay 4 cirurgies an multiple treatments) I could save monthly about € 400 if I had no extra to pay that month, but then I had a big expense I started to use the credit cards and never finished.

I would like to know if you think that it's a good strategy to make an effort for 5 months and pay the two credit cards  to see me free of this, and during that time do not put anything in the savings. Because at the moment, I always put some € 100 in the savings at the beginning of the month, but then I always get to work on them, and I basically really wanted to stop having this credit card expense.

 

Ps: I'm doing my budget with my every month expenses and my true expenses so i don't have a month that i will pay a big bill.

 

I don't know if this make sense.

 

I hope you can help me , or give me more ideas.

 

Thank you a lot :)

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  • Are you just using a generic "savings" category? If so, that is part of the problem. What are you saving for? Vacations, celebrations, Pet care, technology replacement, home repair/maintenance, vehicle replacement, vehicle maintenance. None of these things "just happen". The amount is unknown and the timing is unknown but it's likely that your dog will get sick again at some point in the future so you need to start saving the money now so that it doesn't cause you to go into debt.

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  • Thanks for the awnser jenmas  . Yes nowi know that the problem begin's in the generic saving's. Only this week before i saw the YNAB classes i really understand the budging for 'True Expenses'. 

    So because of this i want starting over in January 2019 , and know i have put every dollar in the budget , and budget for the month expenses and for true expenses.  That's right ?

    So the money I have left after making the budget for monthly and tru expenses is around € 250, and my idea was to start pay the credit card with that money  until May to get rid of the credit cards. Makes sense?

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  • Hi Forest Green Major — Welcome back to YNAB! 

    Here's how to think about that: you want to have enough in savings that, should something happen, you don't have to go back into debt to deal with it. But yes, you'll want to give those dollars a job! It sounds like your dog is important to you, so maybe start there? 

    Set aside a little emergency fund, fill up your True Expenses (sounds like you're working on that!), then make a debt plan. That will help you pay down that credit card balance with a goal in YNAB!

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