Credit Card Says Overspent

I'm new to this, but I've read about 30 different posts on the topic of credit cards this week, however, I still can't quite figure this out.  So apologies if this is posted elsewhere.  

 

We use our miles credit card for all purchases.  We carry the balance for the month, but it is automatically set to pay the balance in full each month.  So we carry no debt.  I have gone through and appropriately budgeted for all credit card purchases that have posted to the card and I have allocated my 'to be budgeted' money into the categories we intend to spend it on in the future of the month e.g. on groceries or gas, etc.  

 

However, as transactions get added to my credit card - even as I categorize those transactions into their appropriate bucket, it is telling me that my credit card has been over spent in the budget. 

 

Why should I have to allocate budget money to my credit card when all purchases are accounted for elsewhere in my budget.  Isn't that double counting?  I'm so confused!  Appreciate the help.

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  • Purchases made on the card prior to starting YNAB are by definition  unbudgeted purchases. In order to make the payment on those purchases you must budget money to the credit card category to reserve the funds for the payment of those pre-YNAB credit card purchases. If you make the payment without having done that, then your payment category will show as overspent.

    Reply Like 1
      • Pink Mixer
      • Pink_Mixer.7
      • 5 mths ago
      • Reported - view

      nolesrule i went back and budgeted the entire previous month though.  and have reconciled the entire balance of the card and transactions.  am I missing something? sorry for being dense.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 5 mths ago
      • 1
      • Reported - view

      Pink Mixer Did you budget money directly to your credit card payment category when you started using YNAB? If not, you did not budget for paying any of the credit purchases you made prior to starting YNAB.

      Reply Like 1
      • Pink Mixer
      • Pink_Mixer.7
      • 5 mths ago
      • Reported - view

      nolesrule I'm not sure I know what you mean.  i went backwards through all of december and accounted for december's payment and categorized for all transactions.  Even if it has to do with a balance prior to when I started YNAB... i'm not sure why it would continue to change now.  for example, if I enter a new transaction onto my credit card account and categorize it into the right budget bucket, it makes my credit card account go negative even further.  

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 5 mths ago
      • Reported - view

      Pink Mixer 

      Pink Mixer said:
      if I enter a new transaction onto my credit card account and categorize it into the right budget bucket, it makes my credit card account go negative even further.  

       Charges on a credit card account do make the account balance go negative. Credit card accounts are the opposite of bank accounts. You start at zero and spend money on it. The negative means you owe money. When you pay it back, the balance of the credit card account moves closer to zero.

      I'm not sure we're talking about the same things here. I've been talking about the Credit Card Payment category on the budget screen. That category is what tells you how much money you have on hand to make future payments against your credit card balance.

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      • Pink Mixer
      • Pink_Mixer.7
      • 5 mths ago
      • Reported - view

      nolesrule thanks for sticking with me.  :)  

       

      i am talking about the budget.  i'll try to better explain. 

      i have $20 budgeted for groceries

      I buy $10 in groceries on my credit card

      I enter the transaction in my credit card account and label it as "groceries" 

      The amount available in my groceries budget goes down by $10 - makes sense.

      But at the same time my amex credit card says -$10, you spent more than you budgeted.  

       

      why would i need to budget money for the amex card if i am budgeting for each individual transaction in my budget elsewhere?  am i missing something fundamental here?  either my amex budget will always be underfunded until its paid, or I am double counting by budgeting for this $10 transaction in both locations.  

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 5 mths ago
      • Reported - view

      Pink Mixer Based on that description something's not right. If you had money budgeted in a category and then spent from the category, there shouldn't be an issue.

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      • Pink Mixer
      • Pink_Mixer.7
      • 5 mths ago
      • Reported - view

      nolesrule i must be doing something wrong then.  but I am truly not sure what.  I will have to see if there is technical support to help me out or something.  

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      • jenmas
      • jenmas
      • 5 mths ago
      • Reported - view

      Pink Mixer also, sometimes things get whacky for no reason and magically get better if you log out and log back in.

      Reply Like
      • satcook
      • satcook
      • 5 mths ago
      • Reported - view

      Pink Mixer when you look at your account list, are your credit cards showing a negative or positive balance?

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      • Pink Mixer
      • Pink_Mixer.7
      • 5 mths ago
      • Reported - view

      satcook negative

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    • Hi Pink Mixer -


      I know you've already done some investigating and adjusting, so it might be a good time to take a look!

      If you’d like, you can enable Support Access for your account, which will allow us to take a peek at your budget. Let me know if you decide to do so—and the name of the budget—and we’ll take a look!

      Reply Like
  • Are you talking about the orange message that pops up in the header of the credit card  account page?  You will need to go to the budget page & double check the things suggested by the others. 

    If the money wasn't in the category it won't get added to the credit card payment category and you will see that overspending note in the header of the credit card account page and the sidebar of the overspent category.

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