You do not budget for paying back a credit card for budgeted purchases.
When you make a budgeted purchase on a credit card (meaning when you enter the purchase transaction in the credit card account register), YNAB takes the money out of the spending category and adds it to the credit card payment category for you automatically.
Oh no! I'm sorry to hear that. It's the last thing we want! 😕 Credit cards in YNAB are designed to help you easily budget for spending on plastic and always have the payment available--but if you don't know how they work, they can be super confusing!
Like others on this thread have said, when you make purchases on a credit card, money moves from your spending categories to the Credit Card Payment category—as long as there’s money in those categories. (We call that budgeted spending.)
1. You budget $40 for your internet bill in your Fixed Expenses category.
2. You charge your internet bill on your credit card and categorize it as Fixed Expenses.
3. $40 will automatically be moved from the Fixed Expenses category where you budgeted them to your credit card payment category. You'll see your Fixed Expenses Available goes down by $40, and your credit card payment Available goes up by $40. 🙂
To learn more about how credit cards work in YNAB, check out these resources:
- Video explaining the two ways money gets into your credit card payment category
- Quick Start Guide to Credit Cards