Accruing New Debt in nYNAB
Happy New Year! I'd like to figure out how do I account for new debt transaction expenses that were unexpected on a CC.
We pay off our balance each month for typical expenses that we've budgeted for, but when the emergency dental work comes calling you have to pay up (speaking from experience--ouch on both fronts!)
I was reading that I just budget this expense as usual to a category letting it be in the "overspend" side and next month the credit card has a positive in the "Payment" category that I could begin chipping away at with budgeted amounts.
I think I have the right of that. My question is how do I (or do I even) single out transactions I want to pay for from an overspent category vs new debt in that same category (that I wouldn't pay off in the month).
Maybe I'm overthinking, but it's probably just as simple transferring the amount budgeted/transferring the amount designated as payment?
Hi flame3912 !
Sorry to hear about the pain (I hate the dentist)!
When there is cash and credit spending in the same category, cash spending takes precedence. So if you have $20 budgeted towards Dining Out, and you spend $15 in cash and $10 in credit, the category will show you're overspent by $5 in credit. There isn't a way to specify which transactions you'd rather that cover. Or, if that $10 credit spending was actually two separate transactions (let's say one for $7 and one for $3), it doesn't matter which one you consider "covered" since there's still overspending.
Following the above example, I could budget $2 towards the credit card category in the following month to cover a portion of that overspending from the previous month. I'd still have an outstanding balance of another $3 (to total the $5 overspending) and I can budget that in the next month to fully pay things off.
When dealing with bigger numbers it's the same principal, just on a larger scale. So instead of budgeting an extra $2 towards the credit card category to cover overspending from previous months, you may budget $20 or $200, etc.Reply