I am renovating a house and using a line of credit to do that. I am spending more than I put on it for sure. Should I make a separate budget for this account because it gives me a negative balance in my to be budgeted and now I don’t know how much money I have after getting paid. How do I solve this.
If you're spending directly from the line of credit, make it a credit card. If you're accessing it only via deposits into your checking account, either making it a tracking account (and categorized transfers as Inflow: TBB) or leave it out of YNAB entirely, categorize deposits as Inflow: TBB, and track your balance on the lender's website.
Hi Cornflower Blue Falafel !
It sounds like you may have added that Line of Credit as a cash account. This means that negative account balance is pulling directly from your budget. . If you change the account to a Line of Credit account, YNAB will recognize it as credit and see that you can pay that balance off over time instead of immediately.
It’s not yet possible to change the account type for an existing account, but you can create a new account and move over the transaction history. Below are the steps to do just that.
1. Create a new account to replace the current one by clicking Add Account > Unlinked. Choose the account type you’d like, give it a nickname (it will need to be slightly different than the original account), and enter 0 for the balance.
2. Go to the original account, select all of the transactions, and move them to the new account using the Edit menu.
The next step will be to delete the original account. If it's a credit card account, first check the Notes area for the credit card payment category in case there’s anything there you want to save.
3. Okay, it’s time to delete the original account. Click the Edit icon next to the account name in the left sidebar, and you’ll see the Delete Account button. Be sure to save any text in the Account Notes field if needed.
4. Now, you can edit the name of the new account and/or link the account if you'd like. For credit card accounts, you may want to create a goal on the new payment category in your budget.
Let me know if you have any questions along the way!