YNAB Incorrectly Saying I've Overspent on CC?
I have another credit card conundrum.
I budgeted $55 to my "Health" category at the beginning of April.
I made a transaction of $55 from this category on my credit card on April 9th.
I paid my credit card off in full on April 12th.
I made another transaction in the "Health Category" for $53 on my debit card on April 16th.
YNAB is saying that I have overspent by $53 on my credit card.
I have double and triple checked that I entered both transactions correctly. The first transaction was $55 and was on my credit card and entered as such. The second transaction was $53 and was made on my debit card, and again entered as such.
Why is YNAB saying I overspent on my credit card? The $53 transaction was on my debit card and without a doubt I entered it this way, so shouldn't it be saying that I overspent from my chequing account?
This is throwing my credit card numbers off. I have enough money to cover the overspending, but then it puts $53 into my credit card available column when I don't need it there...
When you have overspending in a category with a mix of cash-based and credit-based spending, YNAB will treat the overspending as credit overspending to the extent of the credit card spend in the category before treating any remaining overspending as cash overspending. This holds true even if you already paid the credit card.
This can be fixed though by covering the overspending in the spending category or budgeting to the credit card payment category.
Cash transactions take priority over credit transactions within a given category, and money may be pulled back from the CC Payment category to cover the cash transaction(s). Transaction date within the month doesn't matter.
Fix it by moving funds from elsewhere in the budget to eliminate the negative Health category balance. This will automatically fix the CC Payment shortage at the same time.
In the future, you should be looking at the Available amount in the category before spending. If there's not enough to support the intended outflow, then move funds from a less important category so it will. If you can't identify a less important category, then a) don't make the purchase or b) you'll have to resort to new debt to make that purchase. (In other words, that purchase is more important than maintaining your debt at the current level.)
You're probably plenty confused by much of this. I think one tip that may help is that the budget is fairly independent of transactions. Transactions record your past spending and should match reality -- i.e., what will show up on your bank statements.
The budget is the plan for your remaining cash. The only reason transactions matter is because they simply diminish the amount of cash you have remaining.
Assuming you used the appropriate category when recording transactions, issues with the budget are fixed by moving funds until you're happy with the new distribution. This is also why step 1 is to make sure account balances and transactions are accurate -- the budget simply builds on the money that's left.