Credit Card Question
Okay, I'm trying YNAB again. One. Last. Time. I just really struggle with understanding credit cards.
I just created a budget and entered my credit card balance as of today.
Then I went to pay off that balance. I did that by making a payment, and "moving" the money from my savings account. The amount zeroed out in my "Credit Card Payments" line in the budget, but the exact same amount is now being listed as "to be budgeted."
Can anyone point me in the direction of clarity? What am I missing?
What do you mean by ‘moving’ the money? Your payment should be a transfer to pay off the card.
the steps are:
set up the budget, enter all account balances.
Credit card has a balance due of $1,000. Enter that as the starting balance in your credit card account.
then budget $1000 to the credit card line to reserve the money to pay it off.
enter the payment as a transfer from savings or checking to the credit card.
Hi Ruby Maple ! I'm glad that you reached out. When you click on the credit card register, is the payment transaction an outflow or an inflow?
The Record Payment button in your credit card register is handy to help entering a payment, and does some of the steps for you! This Credit Card Payments article has steps (and visuals) of what that looks like in your budget. Let us know if you have questions. 😄
satcook has the right of it due to the order that transactions are applied. A positive CC account balance increases TBB. (It's effectively cash, since you don't need to pay it off.) Adjusting the date keeps the account from going positive.
Alternatively, you could leave the dates alone and budget those seemingly new funds in TBB to the overspent CC Payment category.