How to deal with the payment from my previous month? (pre-ynab)

Hi!

I re-started using YNAB again, and I would like to budget from this month on. Since I have to pay the CC (today, but for the previous month) it feels awkward to have in my "credit cards payments" for this month. I don't know how to deal with this and I cound't find any doc about this, but maybe I just missed it.

I found that I could move everything to june (and budget it so it substracts from my available income this month), but it forces me to move the payment I did today to june 30th.

Thanks!

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  • Forget about what an outflow is "for". You have an outflow in July that needs to be paid. Thus, you need funds Available in the category (at least as much as the payment, but ideally enough to cover the entire debt/account balance).

    It's like buying a Christmas gift in July. It's an outflow in July and the fact it's "for" December is immaterial. You'll also face this same issue if you occasionally have to pay rent at the end of the month instead of the normal 1st of the following month. What matters is when you pay.

    Like 2
  • You need to budget to the credit card payments section.   For your first month you ideally should budget the amount of your starting balance

    Like 1
  • All that said, it's not uncommon to fudge dates to corral your startup capital in its own month (and budget them there as well). It doesn't really matter, so if that makes you happy, so be it.

    The important thing moving forward is to arrange for money to be in categories before the outflows.

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  • Thanks, I understand that, it mess up with the credit card payments section... that's why I don't understand :/

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      • satcook
      • satcook
      • 2 mths ago
      • Reported - view

      Pablo Olmos de Aguilera how is it messing up the credit card payment section?

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    • satcook I'm paying my "old debt", and it stacks with the money I budget it for this month.

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      • dakinemaui
      • dakinemaui
      • 2 mths ago
      • 1
      • Reported - view

      Pablo Olmos de Aguilera there's no difference between old and new debt. There is just "debt". You simply need a larger payment. Budget more to increase the Available amount over and above that which was automatically reserved for recent budgeted purchases.

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      • satcook
      • satcook
      • 2 mths ago
      • Reported - view

      Pablo Olmos de Aguilera that is correct. You want the available amount to equal the money due on the card. 

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    • dakinemaui I understand that conceptually. The problem is that my "card payment" for july it's going to appear "higher" than what I'm actually gonna pay.

      Anyway, after this chat. I believe I can substract this payment from my "starting balance" or add it as an outflow in the "inflow: to be budgeted" category, since it's money that I don't have (I alredy made a payment), and that way I can have the rest of my inflow to be budgeted :). That should create a "real" CC payment for this month.

      I'm not sure if I'm getting it though 🤔

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      • dakinemaui
      • dakinemaui
      • 2 mths ago
      • 1
      • Reported - view

      Pablo Olmos de Aguilera transactions should match what happens with the real world account. This is a record of your PAST spending. The cleared balance in YNAB should match that of your bank.

      The budget is a separate concept. That is the plan for FUTURE spending.

      Like 1
  • Pablo Olmos de Aguilera said:
    The problem is that my "card payment" for july it's going to appear "higher" than what I'm actually gonna pay.

    This is common for a card with paid-in-full status. Enough to pay the entire debt (i.e., the account balance) is Available in the category. Most will only actually send them the statement balance -- typically only about 1/2 the total debt just prior to the payment. No big deal, the remainder will be sent the following month.

    On the other hand, if the Payment category has more than enough to cover the entire account balance, then you should move the excess to elsewhere in the budget.

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    • dakinemaui it turns out I was confused about how budget/payments screen works. When I was taking pictures to explain myself, I realized that when budgeting against categories that had expenses on my CC, they are added to the "available payment". And that since now I'm paying an last month (pre-ynab; since I started on july the 1st), I had to budget against.

      So, I also found that if I'm budgeting right, cutting expenses and getting away from debt, it shouldn't be necessary to use that category at all.

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      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 2 mths ago
      • 1
      • Reported - view

      Pablo Olmos de Aguilera You need to budget to the payment category when you first add a CC to YNAB. It should be the amount you plan to pay of your starting balance. If you pay in full, it should be the amount that you owe on the card unless you’re on the float.

      Like 1
      • dakinemaui
      • dakinemaui
      • 2 mths ago
      • Reported - view

      Pablo Olmos de Aguilera For the most part, that's true. One common exception, however, is to LOWER the category after redeeming purchase rewards for a statement credit.

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    • Superbone yes! This was to understand. I have been using YNAB intermitently, and somehow I get confused about changes. Thanks a lot :)

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    • dakinemaui I understand. I don't redeem purchase rewards (not that way at least), but thanks for the heads up.

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