Payments to Credit Card from External
ive recently been converted from YNAB 4 to the new online one, and so far it’s been great... except credit cards!
I think I have worked it all out except one thing.
I currently have a checking account and a credit card which is used by both my partner and I. If I use the credit card for something personal I would then transfer the money in from my personal checking account (not in the budget) and then transfer it to the credit card to pay it off. I would categorise all the transactions under a single category ‘Person 1 Personal’ which worked well in YNAB 4.
now it seems if I categorise the income from the external account as ‘person 1 personal’ then it doesn’t budget that against paying the credit card for when I transfer the cash to the credit card.
what is the best way to manage this?
I think I have solved it...
by putting the money that is transferee from the external account in ‘TBB’ then budgeting that money in the ‘Person 1 - Personal’ then YNAB, reduces the overspend automatically on the credit card account.
then I only need to budget any additional payments I make to the credit card..?
(A) If you pay the CC directly from the personal account, just record the payment as an inflow to TBB in the CC account. (It will not actually impact TBB since this is a credit account.)
(B) If you transfer from personal to the on-budget checking first, that is recorded as an inflow to TBB in the on-budget checking account. The payment from on-budget checking to the CC is recorded as a Transfer (in the payee field) with no category. TBB will increase when doing it like this, but see the following before you budget this anywhere.
You left out what you're intending to do in the budget for these personal items. Is the "Person 1 Personal" category going to have available funds? If not, then (B) should cover the overspending with the funds that show up, and (A) should cover the overspending from the CC Payment category (which will not actually impact the available payment). Leaving the overspending isn't a great option if you use that category to plan for the transfers to the personal account.
Have you considered using categories to plan your personal spending instead of transfers to off-budget accounts? This opens the door to seamless use of a CC to pay with no extra transfers or budget interactions.
If you don't want your partner to see your budget for whatever reason, I'd still use a category for your personal spending and drop your external account at least.