Fresh nYNAB credit card balance
I was a long time YNAB4 user and now I'm using nYNAB. Like, as of this morning. Without enough coffee...
I'd fallen off the YNAB wagon, but was still budgeting okayish. I want to get back in the habit so I can save better.
I'm the type who pays their credit card in full each month, with no interest payments. Unfortunately, credit card cycles and months don't line up all politely for me to start the month with a zero balance.
I understand that whenever you enter an expense, you see it transfer from the category you entered it in, to credit card payments. That's sort of neat. I picked up some groceries this morning, keyed them in, and I see $6.70 moved from Groceries to American Express Blue.
*However*, my problem lies with entering the existing balance. Prior to my groceries this morning, my balance was $634.23. I do not see this in the "payment" line, nor do I see the balance of my Chase card in that line either. Both of them say $0.00 in grey in the far-right column.
How do I get YNAB to show that I actually owe $640.93 (balance plus my purchase today) in that column? I see that amount as a negative balance in the blue and white accounts column. But not in the main budget.
YNAB will never show how much your card expects you to pay, only what your budget has available for you to pay. If you owe $600 for previous spending, you need to give $600 the job of paying that spending back by budgeting directly to the card category. In the future, you will only need to do this if you incur new debt later.
This is an identical procedure to putting a new card in YNAB 4: if you intended to pay the card in full, you had to first budget the Pre-YNAB debt category to zero.
YNAB will automatically keep up with budgeted purchases. If you deviate outside of that, you will have to manually adjust the CC Payment category to restore agreement between the account and Payment category balances. Common examples of "outside of that" are purchase rewards, gift-card purchases/transfers (when the GCs are tracked in YNAB), and some reimbursement tracking approaches that leverage temporary debt (which are more suitable for large expenses).
If you mean pay the entire account balance down to $0, you may run into issues with returns or some overspending scenarios. As such, most users with "paid-in-full" status only pay what the CC has requested; i.e., the statement balance. This leaves money in the CC Payment category for the next payment, earns interest on that amount, and can usually be automated (reducing the risk of errors).
I was a long time YNAB4 user
If you want a paid-in-full CC to work exactly as it did in YNAB4, you can use a checking account type to represent your card. This implicitly reserves money to pay the entire CC account at all times. The previously mentioned issues with purchase rewards, returns, transfers, etc. vanish. The tradeoff is it's no longer set up to finance anything, should that need arise. In that event, you would need to make a balance transfer to a real credit account until such time as paid-in-full status were restored, then transfer back to the checking account representation.
The above notwithstanding, this may be reason to continue to use the new credit representation, at least for now. Switching to a checking account representation forces a bit more discipline since overspending is not allowed to persist past the end of the month.
Hey Dalinar ! Our Updating from YNAB 4 workshop walks through the new features and changes. And you may find the Transition Guide helpful too!
You'll want to budget for the starting balance on your card. No matter if you pay the statement balance, or down to zero—your credit card Payment column should match the balance owed on the card. Positive amounts will roll over for next month's payment if you pay the statement balance. Here's what it looks like in the budget:
No, not at all. It counts things I pay with my credit card twice. Once when I purchase it with the card, and the again when I'm buying it with the card with the current method. My budget is for $4,500 for the month. When I add in what it wants me to do with the card, my budget doubles to $9000. I had a starting balance budgeted for. I just want to get rid of that line item at this point, because it is counting every purchase I make twice and gets mad at me when I tell it not to.