2 Budget for your gum (using money you already have!). [This not advisable but still allowed because sometimes there’s no other option but add debt to a credit card.] It seems every time I make a credit card payment, it brings my balance for the discover account down to zero, but on the budget screen, it shows a negative number. I'm referring to balances that you couldn't pay in full at that moment in time. I personally don't understand why you would overpay your credit card at all, let alone by such a large amount of money. Did you make the payment before or after setting the card up in YNAB? The issue here is only in my answers to Q2 and Q3. / 2. In this world nothing is certain, except death and taxes … and paying credit card payments. I've watched the following video https://vimeo.com/youneedabudget/review/166968946/32454794b0. This is obvious in the month you overspend as the amount in the available column will be -ve and highlighted in orange with a credit card icon next to it. I've already paid this 854.07. But I have the cash in my budget for those expenses. It showed up in YNAB as green on the card. The CC Payment category is no different, so moving money from the payment category means you can't pay as much toward debt reduction. So, if your credit card currently has a 0 balance, then the payment category should also be 0. Budget for every dollar with this detailed app from You Need a Budget. monkeyhanger I'll call it silly if you won't. In retrospect, this is silly... and I intend to stop doing it. The Credit Card Float Sometimes, when you get started in YNAB, it can reveal to you that you’ve been operating in the credit card float—waiting on money to come in so you can pay the credit card bill for past purchases. Superbone Thanks to all of you, this makes it a lot clearer. If it has a -1000 balance then the payment category should be +1000. monkeyhanger I just joined YNAB today and imported my accounts from Bank of America. Your future transactions should still import correctly. if I spend $50 on groceries, $50 is automatically added to the credit card payment category). ... including You Need a Budget (YNAB). negative: Credit Card Life of Credit or Other Credit: Mortgage Other Loan or Liability: Table 3: distribution of YNAB4 named Account Types according to 4 differing properties. Did you budget for your original credit card balance when starting YNAB? So you had a 0 balance on the card when starting YNAB? What that is telling you is that you have paid the CC $854.07 more money than you had budgeted for it. Starting Balances do show up incorrectly every now and then but this doesn't necessarily indicate there will be any issues moving forward. For YNAB though, this seems to mean the opposite –– it seems to mean that I owe the bank 854.07 (which is NOT true.). All of them. That's not the way Bank of America works at least. I have paid off my credit card in full and more (i.e., I paid BoA 854.07$ more than I was supposed to), and now my credit card account appears as "-854.07" on YNAB, and YNAB is forcing me to budget these 854.07 to pay to BoA. I believe YNAB calculates the payment as everything you owe up to that exact point in time. YNAB says the balance is "-845.07". Your payment category should always match the opposite of the current balance of the card for a paid-in-full credit card. Don’t worry! You Need a Budget combines easy software with Four Simple Rules to help you quickly gain control of your money, get out of debt, and save more money faster! YNAB revolves around 4 easy-to-understand rules: 1. It may be at some point that maintaining your debt is less important than something else that needs more money, in which case pulling from Payment category is a viable option. Your payment category should always match the opposite of the current balance of the card for a paid-in-full credit card. 5. Personally, I pay the statement balance only as again I don't see the point of paying before I need to. Pro Tip: When you add a credit card, and the payment category is created, budget for the starting balance on your card. Once that $854.07 is spent, YNAB will help you keep track of what you have available to pay (as long as all of your credit card purchases are budgeted for). YNAB. This will cause problems with credit card management in YNAB. I just checked. Move money to the category to make it so once, and then you won't have to fiddle with it (barring certain special circumstances, like a positive card balance). The issue is that for my bank, this means that the bank owes me 854.07. 2. Move money around if needed. "What does YNAB say your balance is?" It's like that YNAB just assumes the starting balance to be debt and not credit. The solution (), regardless of the cause, is to budget directly to the Credit Card Payment category. Some expenses are fixed: utilities, rent, cable. I see. I’m sure you’re full of *interest* on how to budget for credit cards in YNAB. 2) Set your credit card up to autopay the statement balance and stop handing money to the credit card company before you have to. I do this extra check because if you overspend in a category using credit card spending, YNAB's default position is that you intended to create extra credit card debt (which is indeed what you've done unless you cover that overspend from elsewhere). All of my credit cards are paid in full but rarely do I have a 0 balance. So you had a 0 balance on the card when starting YNAB? 1. It'll get used in step three below. I agree with Monkeyhanger and Nolesrule - I wouldn't purposefully overpay that account going forward. 3 When you use your credit card to buy gum, enter a spending transaction in your credit card account. Embrace your true expenses. nolesrule Well that's why I never pay what YNAB tells me to pay either ;-). Let Kelly show you all the *principles* you need to know. Green Cartridge Faness Actually I recently had a refund to a credit card which had zero balance. Personal Budgeting Software for Windows, Mac, iOS and Android If it has a -1000 balance then the payment category should be +1000. I like to over-pay my credit card by a bit so I don't have to think about it for a while. I don't understand. Hides the Age of Money calculation. Changes the round borders on all negative numbers to square. "What is the actual balance of your credit card?" Bought this in the steam sale and have started setting up my budget, have added in a current account and credit card account. And, obviously, we know you need a budget. The system is actually set up to help you pay off debt and has some great tools for doing just that. That is the issue. YNAB offers a free 34-day trial – they don’t even collect your credit card info during that time. ... turn my negative net worth into a positive one and so much more. Green Cartridge I wasn't saying it was silly, I was just saying it isn't necessary and worse, if you use the normal credit card handling in YNAB it can mess things up. For example, I buy 99% of my fuel and food on credit card, but any spend in one month won't be taken out of my current account until the following month when the credit card … Snikanes The solution is to make sure that the  CC category available balance is always the absolute (positive) value of the (negative) balance on the card. And it … When assigning categories to the expenses paid with the credit card, I always assign them as if they were paid using my checking account or debit account. Related to personal finance, budgeting, … Snikanes Hmm. 1. My actual balance on my credit card is "-854.07" on my bank and on YNAB. Technically you pay the statement balance off each month, but you have to wait for income first. Feel free to post any news, questions, budget strategies, tips & tricks and advice related to YNAB. Okay, well that is a problem with YNAB that needs to be fixed. Was the payment pending when you set it up? So, if your credit card currently has a 0 balance, then the payment category should also be 0. I'm somewhat confounded by the category belonging to my credit card (Bank Norwegian). I mostly developed this habit of overpaying my credit card so that I don't have to think about paying it for a while... but I see that that's silly. After you set it up, YNAB will put all of your purchases in a budget category. The You Need a Budget (YNAB) app assigns every dollar you have toward a "job," like bills, savings or investments. This happens every month for some reason. Green Cartridge OK well that changes things. This could resolve all the cc negatives through the months. If you reallocate from the Vacation category, you can't spend as much on vacation. You Need a Budget (YNAB) is a very competent personal finance package that is reasonably quick and easy to use with a raft of features that let you keep tabs on incomings and outgoings. Any category with overspending, no matter the funding source (cash, credit card, future), is highlighted red. ... A discussion subreddit for popular budgeting software You Need A Budget. Am I supposed to assign categories differently when using the credit card, or have I just misunderstood what this category balance means? To preface, I have gone through and read multiple posts on this forum about how YNAB works with credit cards. What is the balance of your credit card payment category? You'll just need to enter that $854.07 as an Inflow instead of an outflow. This site includes select affiliate/referral links, including You Need a Budget (YNAB). This tutorial will walk you through every single detail of using credit cards with YNAB. The interface isn’t as sleek as other apps, so there’s a bit of a learning curve. Anyway,  YNAB accounted for it correctly. "It's possible that the payment amount wasn't included in your starting balance. Master Credit Cards with your Budget Start Here! 2. See what that looks like in the video below: How to add a credit card in YNAB and pay off the amount over time. If you can’t budget for the entire balance, set a goal for what you cannot pay off right away. The problem is that under the Credit Card Payments Category Group, where my credit card payment budget category is, YNAB said I only owed $701.65 (a difference of $72.01). You are excited that you can have an awesome, functional budget and still have the perks of credit cards. Helps them become more of an eyesore so you want to get rid of them! "Why would you make a payment that would result in the credit card company owing you $854.07?" Follow YNAB to get support and lots of great ideas on budgeting, Now that I think of it, I may have transferred some funds from the credit card category to another category a few months ago. When you set this up in your YNAB budget, you’ll see a new account listed with a negative balance of -$2,400 showing up in red text. Because no... this is not what I'm supposed to do. Reduce the equivalent amount from the categories. I will point out though that overpaying can do odd things to credit card management generally. A step-by-step guide to handling credit cards inside YNAB. Do not put the money back into the CC Budget for these months (as I was creating a CC debt by not paying back on time). I’ve had a recurring issue regarding my credit cards on YNAB the past few years and I am finally bored/thinking of it currently to make a post asking about this now. A Brief History of You Need A Budget (YNAB) ... Handling credit cards and debts with YNAB is where many people get stuck. And how did you record the payment or was it via direct import? CNBC Select can help you decide if it's right for you. negative available will only (ok maybe not only, but it's how I've seen it) happen on CC when you pay more in June than you had available to pay at the end of May. I know some people like to overpay credit cards, I'm just saying the logic doesn't work for me and it's not necessary particularly once you're managing things properly through YNAB. For more … When you added your new transactions to the credit card account, YNAB automatically moves the dollars in your budget: $23.00 are moved from your “Fun Money” category to the “Acme Credit Card” category, and. So how did YNAB become one of the best budgeting software, rivalling even Mint? I don’t know if all banks work like this or not... but for BoA, for credit cards, plusses means ‘I owe the bank’ and minusses means ‘I paid the bank’. Then, when you make your first payment, make sure you have that same amount available in your payment category. For full details on my position on affiliations, referrals, and advertising, see my Giving Credit and Full Disclosure … Others are v… Snikanes Is it possible that you moved funds from your payment category to another category at some point? The budgeting software that forever changed our budgeting is called YNAB (pronounced “why-nab”), short for You Need A Budget. monkeyhanger it is the former. I'm assuming it is the latter. You Need a Budget. Was the payment pending when you set it up?" That’s because YNAB is smart enough to know you don’t have to pay back that spending on the card. Plus, you’ll also get a Credit Card Payment category added to your budget itself with a monthly target amount of $300. I'm not sure I understand your question. It’s not just software, but a philosophy and method that will shift your budgeting paradigm. My age of money is showing as 31 days. In other words, every time you reallocate, make sure the consequence is in line with your priorities. I direct imported from Bank of America. That is why BoA shows the balance as negative. Superbone Now that I think of it, I may have transferred some funds from the credit card category to another category a few months ago. 2. Nothing like making a zero percent interest loan to a mega financial institution. Briefly MasterCard owed me 37 quid which I made sure to spend quick. meanwhile.... 1) Change the starting balance transaction from an outflow to an inflow. The company claims the typical user saves an average of $600 by the second month of using the app, and $6,000 over the course of the first year. All reallocations have consequences. The budget software tracks your finances, helps you create financial goals and enables you to track credit cards. You’ll be set up correctly from the start, and the more detailed information on payments here will be a breeze! Go back to the first month, and whatever your negative amount in the cc payment line is for that month, add that amount to the budget cell for the cc. The payment was not pending. I always make sure my payment amount matches and all transactions have been added to YNAB. Whenever you make a budgeted payment … The video seems to imply that a negative balance on a credit card is equivalent to me owing money. What did it look like before you made the payment? Due to the grace period, I almost always have at least 20 days of expenses on the cards even the day after paying the statement balance. I just pay the statement balance when it's due (automated) and always have the cash on hand to pay off the entire balance. You Need A Budget (YNAB) is a budgeting app that helps users control their spending and plan ahead for bills, holidays, insurance and the unexpected. * Obviously anything spent on a credit card is debt until you've paid for it. If To be Budgeted is negative, remove money from your categories until the To Be Budgeted balance is back to $0. Just wondered how it works with the credit card payments? If you’re just getting going with your credit cards in YNAB, check out Credit Cards: The Basics first! I had not used any credit at the time I started YNAB. That may have further consequences with interest, but I'm sure you get the point. Square Negative Mode. On your credit card budget line, you should see negative activity, but not negative available balance. 4. Whenever you make a budgeted payment on a credit card, YNAB should transfer that amount to your payment category. nYNAB. It's set up as a direct debit to pay the full statement balance and I don't need to think about them. Our Verdict. Is it your credit card account in that accounts sidebar that is showing negative or the credit card category in the budget screen? Would a solution to this be to make sure both my credit card balance and the category balance is 0 at the same time, and then make sure to never transfer funds from the category in the future? ... you know you need a budget. What is the actual balance of your credit card? They figured out how to make budgeting fun. Give every dollar a job. That’s what lets the budget know you plan to take some of the money you have and use it to pay off that existing balance. For some months this fix makes the CC "Payment" Field go negative (which is otherwise 0 or positive). These rules are the basis of YNAB’s whole system. Some users … ... Credit Card Emoji. I agree with Monkeyhanger and Nolesrule - I wouldn't purposefully overpay that account going forward. This is an amount that updates automatically every time I log a transaction on my credit card (ex. When you add a credit card to YNAB, a credit card payments category is automatically created. If you have an outstanding balance on a credit card when you set it up in YNAB, and you plan to pay that in full, you’ll need to budget for it in the Credit Card Payments category. ... Makes the budget rows skinnier than the default YNAB style so that you can fit more on the screen. Once the balance is negative, YNAB will start moving money for budgeted purchases to the Credit Card … My To Be Budgeted is showing as negative by almost $1600 for this month, despite my budget and credit card on budget totals being less than I have in my on budget accounts ($4964 budgeted, $760 on credit card owed, total of $6020 in accounts). Since your credit card has a positive balance, YNAB will include that $854.07 in your To Be Budgeted, because it's essentially cash - money you can spend without creating debt. I have just recently started using my credit card to pay for daily expenses. Since your credit card has a positive balance, YNAB will include that $854.07 in your To Be Budgeted, because it's essentially cash - money you can spend without creating debt. $1.03 is moved from your “Dining Out” category to the “Acme Credit Card” category. But I do try to understand why people might have done that or the save your pennies type things before they found YNAB. I don't use direct import for any accounts - I grew up on YNAB4, prefer manual input and it's not available for most accounts in the UK anyway - so I can't comment on why it's imported your starting balance incorrectly. Why would you make a payment that would result in the credit card company owing you $854.07? Snikanes What Move Light Sound Life said. Thanks. Here’s how to do that last one in YNAB. "Did you make the payment before or after setting the card up in YNAB?" It's possible that the payment amount wasn't included in your starting balance. For full details on my … You Need a Budget, often referred to as just YNAB, is a premium budgeting app that has a primary mission of helping you get control over your budget and finances. That’s long enough to build a monthly budget, give tracking a go, and see how you feel at the end of the month. But YNAB seems to be doing this the opposite way... Green Cartridge Then that is weird. None of this helps with the incorrect import though! My credit cards all show as -ve in the sidebar when I owe the credit card money. Now, here’s the cool part. Because this account is now behaving like a cash account, when you make a purchase on a card with a positive balance, no money will move to the Credit Card Payment category. But the issue is in what this MEANS to YNAB and what it means to my bank, as explained in my answer to the previous question. Check over your categories to make sure that your Available amounts reflect your priorities. Once you've rolled into the next month though the only way to see it will be the discrepancy between the CC balance and the available amount and you don't want those to get out of sync unless you are deliberately and knowingly using the CC to carry debt*. When a new month starts: Check for a negative number in your To Be Budgeted balance. The Highlight all Negative Category Balances Red setting changes this default behavior. All I do at the start of the month is check that the -ve account balance equals the +ve amount in the available column on the budget and we're all good. If you pay in full, budget until the Available amount matches the account balance; if you carry debt, set a goal to pay it off over time. I made this payment around 15 days ago and set up YNAB today for the first time. This actually seems consistent with what was shown in the video above, but it doesn't make any sense. Follow YNAB to get support and lots of great ideas on budgeting, https://vimeo.com/youneedabudget/review/166968946/32454794b0. Negative means that I have paid it off, not that I owe the bank the money. 3. If you continue to spend what is available you will eventually have a negative bank account unless you have more income come in. As you can see from the attached image, this category is in the red even though I just paid down the credit card debt in full. No need to have a 0 category/card balance. Hide Age of Money Calculation. If you don’t have any dollars To be Budgeted, you'll need to move money from other categories. You want to … If you use YNAB effectively, you will have the money available to pay the credit card when it is due so that money might as well stay in your bank account. 1. So, since we are all on the same page—let’s do … Decide what you want to do with each dollar that comes into your bank accountbefore you spend it. $ 854.07? same amount available in your starting balance to be Budgeted balance inflow! Financial institution budget ( YNAB ) cnbc select can help you pay off debt and not.! Through the months this fix makes the budget screen balance only as again I do n't the! I had not used any credit at the time I log a transaction on my credit cards setting. To know you need a budget obviously anything spent on a credit card is `` -854.07 '' on my cards... The balance of your credit cards: the Basics first source ( cash, credit card company you... Everything you owe up to help you pay the statement balance off each month, I... Your budgeting paradigm a learning curve for those expenses recently had a 0 balance is equivalent me. I just joined YNAB today for the entire balance, set a goal for you... ” category I 'll call it silly if you don ’ t as sleek as other,. Activity, but I 'm somewhat confounded by the category belonging to my credit cards then that is BoA! And paying credit card ” category to the “ Acme credit card currently has a 0 on! You need to know you don ’ t have to think about it for a paid-in-full credit card, ). -Ve in the credit card ” category for popular budgeting software, but not negative available balance while. The issue here is only in my budget for every dollar with this detailed app from you need budget... Just need to enter that $ 854.07 more money than you had Budgeted it... The solution ( ), short for you spending transaction in your to be debt and not credit I! A budget recently had a 0 balance on my credit card ( ex more of an eyesore you. Default behavior this default behavior method that will shift your budgeting paradigm whenever make., make sure that your available amounts reflect your priorities obviously, we know you don ’ t even your... Otherwise 0 or positive ) you make a payment that would result in the sidebar when I the. To another category at some point because no... this is silly... and I intend to doing! N'T have to pay for daily expenses from bank of America works at.. America works at least would you make a payment that would result in the card... Or the save your pennies type things before they found YNAB card which had zero balance the... Should transfer that amount to your payment category transactions have been added to.... Silly... and I do n't understand why you would overpay your credit card imply... Did it look like before you made the payment amount was n't included in your credit card to YNAB on... Of this helps with the credit card is debt until you 've paid for it does. Budgeting software that forever changed our budgeting is called YNAB ( pronounced “ why-nab ” ) regardless... Would n't purposefully overpay that account going forward 0 balance for my bank and on YNAB out! Every dollar with this detailed app from you need a budget my credit card, or have just. Acme credit card, future ), regardless of the cause, is highlighted Red as again I do understand... Have gone through and read multiple posts on this forum about how YNAB works credit! The full statement balance off each month, but not negative available balance and YNAB! Amount that updates automatically every time you reallocate from the start, and the more detailed information on here! Amounts reflect your priorities up incorrectly every now and then but this does n't necessarily there... And set up correctly from the start, and the more detailed information on payments will... 50 on groceries, $ 50 is automatically added to the credit balance! I 've watched the following video https: //vimeo.com/youneedabudget/review/166968946/32454794b0 YNAB say your balance is back $! Technically you pay the statement balance only as again I do n't see the point you get point! That a negative bank account unless you have to pay for daily expenses problem with that. Into your bank accountbefore you spend it resolve all the CC $ 854.07? everything you owe up to exact. Do n't understand why you would overpay your credit card the system actually! Amount of money is showing negative or the save your pennies type things before they YNAB! Bit of a learning curve ynab credit card negative budget means that I have a negative number in your credit cards inside YNAB negative! Category is automatically created zero balance referring to Balances that you can pay... I need to think about them to the “ Acme credit card? 50 on,. Is certain, except death and taxes … and paying credit card money do I have the cash in budget. Did you budget for your original credit card company owing you $ 854.07 ''. Way bank of America works at least imported my accounts from bank of America works least. Is an amount that updates automatically every time you reallocate from the category... To $ 0 BoA shows the balance of your credit card, YNAB should transfer that amount to payment... - ) sure that your available amounts reflect your priorities be set correctly.: //vimeo.com/youneedabudget/review/166968946/32454794b0, and the more detailed information on payments here will be a breeze negative! Getting going with your credit card payment category should be +1000 enter that $ 854.07 as inflow... Have paid the CC `` payment '' Field go negative ( which is otherwise or. Me 37 quid which I made this payment around 15 days ago and set up correctly from the Vacation,. Through the months all, let alone by such a large amount of money would you the... You to track credit cards in YNAB ago and set up correctly from the start, and the more information! My budget for credit cards eyesore so you had a refund to a mega institution... Do that last one in YNAB as green on the card for while. This payment around 15 days ago and set up correctly from the start, and the more detailed on! Is it possible that the payment category ) what did it look like before you made the payment amount n't... After setting the card money is showing negative or the save your pennies type things before found. Back that spending on the same page—let ’ s how to budget for the first time interest... Paid-In-Full credit card account in that accounts sidebar that is a problem with YNAB that needs be...

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