How does budgeting for end of the month charges rollover?
I'm trying to figure out how this works:
- I make a purchase on my credit card in the last few days of the month and don't manually record it and haven't budgeted for it (sometimes I forget, sigh)
- My budget rolls over to the new month
- The charge I made clears and shows up in the previous month.
- The category shows up as underfunded in the previous month, but not in the current month, which shows a neutral balance. So if I forget to check the previous month, I may not be aware that the category was underfunded.
Is there a way to account for the underfunding of the category besides being diligent about checking the previous month? And are these charges added to the credit card payment for the current month?
It seems to all come out in the wash, but I'm curious how I can better track these types of charges.
If your credit card has paid-in-full (PIF) status, the CC Payment category should cover the entire debt (account balance). When you have overspending, the debt increases but the Payment category doesn't, causing a mismatch. That's the signal you need to go hunting for overspending.
If that card does not have PIF status, you're just going to have to get into a habit of looking at last month, say on the 3rd or 4th of the month.
Alice Blue Sander said:
are these charges added to the credit card payment for the current month?
The overspent amount is never added to the CC Payment. There is no money available to move.