Credit Card Spending at The End of The Month

Normally when I use my credit card I budget the categories properly so that the card can be paid right back. At the end of April however, we had an emergency which caused some credit card spending in the last few days of the month. Since the transactions were in April, that is the month they are hitting the budget, but there will not be money available to pay/budget for those amounts until beginning May.

My question is - How do all of you typically handle that budgeting? I've noticed the "!" categories that showed up in April, don't roll over as under budgeted in May (assumingly because it's a credit card). Do you just look back at the previous month to see what you spent and showed as a "!" category, and then just budget that amount as a credit card payment for the current month?

 

Thanks!

9replies Oldest first
  • Oldest first
  • Newest first
  • Active threads
  • Popular
  • Move money from the credit card category to cover the categories that you knowingly took on debt for. Do this in April, and continue the process until the overspending is gone.

    To pay it back, budget directly to the Cc category in May (or later). 

    You'll know you're without debt when your cc category available is the positive equivalent of your negative cc balance.

    Like 2
    • Move Light Sound Life Unless I'm missing something, step one is unnecessary—better to just leave the categories overspent in April!

      Like
  • Philsboy said:
    My question is - How do all of you typically handle that budgeting?

     Matthew

    My step one is what I would consider the fundamental mechanism for the YNABer to learn about in regularly managing the software. It's also the cleanest. Plus, it helps minimize the desensitization to yellow.

    Sure, at this point in May, the software has tidied those loose ends a bit, so it's technically unnecessary, but isn't the goal to get the user to understand why things happen in the software?

    For some, that information may be too overwhelming/confusing such that they give up (I only believe in simplifying to prevent throwing the towel in - otherwise, people should and can work through understanding whatever it is). However, the OP asked the question in a way that made me think they would get it without too much of a struggle.

    Also, it's not even my idea.

    HappyDance and WordTenor and jenmas taught me that a long time ago, and I've seen dakinemaui explain the same since, though he'd probably agree with avoiding the unnecessary work at this point in time.

    Like 2
      • Vibrant
      • No more counting dollars, we'll be counting stars
      • vibrant
      • 13 days ago
      • 1
      • Reported - view

      Move Light Sound Life if we're talking about learning the fundamentals of the software... moving money from the credit card category to the overspent category to eliminate the yellow warning and shift the shortage to the CC category so that you can budget directly to the CC category in the next month ...is like YNAB 401, not YNAB 101.  

      If you are intentionally spending on credit without funds available to cover it, I think it's better to have the record of that reality in YNAB in the form of the yellow overspending warning.

      Like 1
    • Vibrant True - maybe I should have said the fundamentals for this situation, which is not basic YNAB. Hopefully, there aren't these kinds of emergencies every month.  If I plan on floating any debt, I would prefer to represent that in my budget correctly, rather than wait for YNAB to do it for me.  I thought that's what he was asking, so I described it.

      Philsboy , if my advice above was too confusing, feel free to just skip it and let YNAB do its thing.  When you have the money to pay off the debt you floated/incurred, just budget it to the CC category in whatever the current month is in order to add it to your payment. 

      Like
  • I also thought about going back to April and adjusting - but here is the snag... I just tested it, and you can't. The money wasn't there in April, so YNAB will not allow you (understandably) to go back and add money to a budget that wasn't available as To Be Budgeted at that point in time.

    Like
      • Vibrant
      • No more counting dollars, we'll be counting stars
      • vibrant
      • 13 days ago
      • 1
      • Reported - view

      Philsboy correct, you would have to move money from another category that has money in it. Move Light Sound Life 's suggestion was to move the money from the CC category, assuming you have money available in the category from other budgeted spending. It's basically a little sleight of hand that eliminates the yellow warning in April; you would still need to budget the money directly to the CC category in May.

      Like 1
    • Vibrant Even if there were no other budgeted spending on the CC, moving money from the CC payment category in April would work. The negative number in the budget column would cancel out the positive number flowing from the category of spending, resulting in a net $0 change in how much is available to pay the card. 🙃

      You're right, it is a bit of a sleight of hand.

      Like
      • Vibrant
      • No more counting dollars, we'll be counting stars
      • vibrant
      • 12 days ago
      • 1
      • Reported - view

      Move Light Sound Life This hurts my brain. 😄 I'm going to have to go test it out for myself, I think. 

      Like 1
Like Follow
  • 12 days agoLast active
  • 9Replies
  • 131Views
  • 4 Following