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. Why would you make a payment that would result in the credit card company owing you $854.07? It showed up in YNAB as green on the card. If it has a -1000 balance then the payment category should be +1000. Helps them become more of an eyesore so you want to get rid of them! 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? monkeyhanger I just joined YNAB today and imported my accounts from Bank of America. When you add a credit card to YNAB, a credit card payments category is automatically created. 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). In other words, every time you reallocate, make sure the consequence is in line with your priorities. If you don’t have any dollars To be Budgeted, you'll need to move money from other categories. It's set up as a direct debit to pay the full statement balance and I don't need to think about them. 2 Budget for your gum (using money you already have!). Budget for every dollar with this detailed app from You Need a Budget. Personally, I pay the statement balance only as again I don't see the point of paying before I need to. I agree with Monkeyhanger and Nolesrule - I wouldn't purposefully overpay that account going forward. Pro Tip: When you add a credit card, and the payment category is created, budget for the starting balance on your card. Green Cartridge OK well that changes things. If To be Budgeted is negative, remove money from your categories until the To Be Budgeted balance is back to $0. This actually seems consistent with what was shown in the video above, but it doesn't make any sense. 3 When you use your credit card to buy gum, enter a spending transaction in your credit card account. Master Credit Cards with your Budget Start Here! 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. 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. 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. Anyway,  YNAB accounted for it correctly. 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. After you set it up, YNAB will put all of your purchases in a budget category. You Need a Budget. And, obviously, we know you need a budget. I'm assuming it is the latter. YNAB. Some users … My credit cards all show as -ve in the sidebar when I owe the credit card money. 2. That is the issue. It's like that YNAB just assumes the starting balance to be debt and not credit. Am I supposed to assign categories differently when using the credit card, or have I just misunderstood what this category balance means? 1. So, if your credit card currently has a 0 balance, then the payment category should also be 0. Technically you pay the statement balance off each month, but you have to wait for income first. 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. nolesrule Well that's why I never pay what YNAB tells me to pay either ;-). Whenever you make a budgeted payment on a credit card, YNAB should transfer that amount to your payment category. The interface isn’t as sleek as other apps, so there’s a bit of a learning curve. YNAB says the balance is "-845.07". It’s not just software, but a philosophy and method that will shift your budgeting paradigm. When a new month starts: Check for a negative number in your To Be Budgeted balance. 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. But I have the cash in my budget for those expenses. That's not the way Bank of America works at least. 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. Any category with overspending, no matter the funding source (cash, credit card, future), is highlighted red. I direct imported from Bank of America. 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). The system is actually set up to help you pay off debt and has some great tools for doing just that. The issue is that for my bank, this means that the bank owes me 854.07. A Brief History of You Need A Budget (YNAB) ... Handling credit cards and debts with YNAB is where many people get stuck. If you reallocate from the Vacation category, you can't spend as much on vacation. 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. That’s long enough to build a monthly budget, give tracking a go, and see how you feel at the end of the month. 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. If you continue to spend what is available you will eventually have a negative bank account unless you have more income come in. 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’. The video seems to imply that a negative balance on a credit card is equivalent to me owing money. "What does YNAB say your balance is?" For YNAB though, this seems to mean the opposite –– it seems to mean that I owe the bank 854.07 (which is NOT true.). 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). ... Makes the budget rows skinnier than the default YNAB style so that you can fit more on the screen. 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. Was the payment pending when you set it up? I made this payment around 15 days ago and set up YNAB today for the first time. if I spend $50 on groceries, $50 is automatically added to the credit card payment category). I’m sure you’re full of *interest* on how to budget for credit cards in YNAB. 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. You want to … This is an amount that updates automatically every time I log a transaction on my credit card (ex. Starting Balances do show up incorrectly every now and then but this doesn't necessarily indicate there will be any issues moving forward. It's possible that the payment amount wasn't included in your starting balance. That’s because YNAB is smart enough to know you don’t have to pay back that spending on the card. If it has a -1000 balance then the payment category should be +1000. This tutorial will walk you through every single detail of using credit cards with YNAB. "Why would you make a payment that would result in the credit card company owing you $854.07?" All reallocations have consequences. Personal Budgeting Software for Windows, Mac, iOS and Android 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. The payment was not pending. But YNAB seems to be doing this the opposite way... Green Cartridge Then that is weird. 1. I'm somewhat confounded by the category belonging to my credit card (Bank Norwegian). 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. In this world nothing is certain, except death and taxes … and paying credit card payments. 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). ... turn my negative net worth into a positive one and so much more. I personally don't understand why you would overpay your credit card at all, let alone by such a large amount of money. ... including You Need a Budget (YNAB). They figured out how to make budgeting fun. Follow YNAB to get support and lots of great ideas on budgeting, https://vimeo.com/youneedabudget/review/166968946/32454794b0. The budget software tracks your finances, helps you create financial goals and enables you to track credit cards. Okay, well that is a problem with YNAB that needs to be fixed. Because no... this is not what I'm supposed to do. So you had a 0 balance on the card when starting 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. No need to have a 0 category/card balance. Reduce the equivalent amount from the categories. The solution (), regardless of the cause, is to budget directly to the Credit Card Payment category. Snikanes Is it possible that you moved funds from your payment category to another category at some point? This site includes select affiliate/referral links, including You Need a Budget (YNAB). 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. On your credit card budget line, you should see negative activity, but not negative available balance. 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. monkeyhanger I'll call it silly if you won't. "It's possible that the payment amount wasn't included in your starting balance. I've already paid this 854.07. Was the payment pending when you set it up?" The You Need a Budget (YNAB) app assigns every dollar you have toward a "job," like bills, savings or investments. Snikanes What Move Light Sound Life said. 3. nYNAB. 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. 1. I'm not sure I understand your question. Our Verdict. 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. The issue here is only in my answers to Q2 and Q3. Your payment category should always match the opposite of the current balance of the card for a paid-in-full credit card. 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). For full details on my position on affiliations, referrals, and advertising, see my Giving Credit and Full Disclosure … 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. For some months this fix makes the CC "Payment" Field go negative (which is otherwise 0 or positive). So you had a 0 balance on the card when starting YNAB? meanwhile.... 1) Change the starting balance transaction from an outflow to an inflow. 2. ... you know you need a budget. I see. For more … Green Cartridge Faness Actually I recently had a refund to a credit card which had zero balance. Changes the round borders on all negative numbers to square. I've watched the following video https://vimeo.com/youneedabudget/review/166968946/32454794b0. All of them. Square Negative Mode. The CC Payment category is no different, so moving money from the payment category means you can't pay as much toward debt reduction. Briefly MasterCard owed me 37 quid which I made sure to spend quick. Whenever you make a budgeted payment … YNAB offers a free 34-day trial – they don’t even collect your credit card info during that time. Embrace your true expenses. To preface, I have gone through and read multiple posts on this forum about how YNAB works with credit cards. 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 … My age of money is showing as 31 days. And how did you record the payment or was it via direct import? Others are v… A step-by-step guide to handling credit cards inside YNAB. 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. 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. You'll just need to enter that $854.07 as an Inflow instead of an outflow. Move money around if needed. I'm referring to balances that you couldn't pay in full at that moment in time. What that is telling you is that you have paid the CC $854.07 more money than you had budgeted for it. 4. But I do try to understand why people might have done that or the save your pennies type things before they found YNAB. I believe YNAB calculates the payment as everything you owe up to that exact point in time. I will point out though that overpaying can do odd things to credit card management generally. CNBC Select can help you decide if it's right for you. Just wondered how it works with the credit card payments? Did you budget for your original credit card balance when starting YNAB? Don’t worry! Once the balance is negative, YNAB will start moving money for budgeted purchases to the Credit Card … 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. Now, here’s the cool part. Superbone Thanks to all of you, this makes it a lot clearer. Is it your credit card account in that accounts sidebar that is showing negative or the credit card category in the budget screen? If you can’t budget for the entire balance, set a goal for what you cannot pay off right away. For full details on my … YNAB revolves around 4 easy-to-understand rules: 1. You’ll be set up correctly from the start, and the more detailed information on payments here will be a breeze! ... A discussion subreddit for popular budgeting software You Need A Budget. This happens every month for some reason. I just checked. This could resolve all the cc negatives through the months. Negative means that I have paid it off, not that I owe the bank the money. I have just recently started using my credit card to pay for daily expenses. I always make sure my payment amount matches and all transactions have been added to YNAB. So, since we are all on the same page—let’s do … The Highlight all Negative Category Balances Red setting changes this default behavior. So, if your credit card currently has a 0 balance, then the payment category should also be 0. And it … Plus, you’ll also get a Credit Card Payment category added to your budget itself with a monthly target amount of $300. Nothing like making a zero percent interest loan to a mega financial institution. The budgeting software that forever changed our budgeting is called YNAB (pronounced “why-nab”), short for You Need A Budget. Hide Age of Money Calculation. 2. You are excited that you can have an awesome, functional budget and still have the perks of credit cards. Here’s how to do that last one in YNAB. monkeyhanger it is the former. Snikanes Hmm. 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! These rules are the basis of YNAB’s whole system. Related to personal finance, budgeting, … 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*. In retrospect, this is silly... and I intend to stop doing it. Your future transactions should still import correctly. See what that looks like in the video below: How to add a credit card in YNAB and pay off the amount over time. Thanks. My actual balance on my credit card is "-854.07" on my bank and on YNAB. So how did YNAB become one of the best budgeting software, rivalling even Mint? 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. Bought this in the steam sale and have started setting up my budget, have added in a current account and credit card account. That may have further consequences with interest, but I'm sure you get the point. I just pay the statement balance when it's due (automated) and always have the cash on hand to pay off the entire balance. 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. 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. This will cause problems with credit card management in YNAB. I had not used any credit at the time I started YNAB. 5. 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 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. $1.03 is moved from your “Dining Out” category to the “Acme Credit Card” category. Check over your categories to make sure that your Available amounts reflect your priorities. If you’re just getting going with your credit cards in YNAB, check out Credit Cards: The Basics first! I agree with Monkeyhanger and Nolesrule - I wouldn't purposefully overpay that account going forward. [This not advisable but still allowed because sometimes there’s no other option but add debt to a credit card.] Let Kelly show you all the *principles* you need to know. * Obviously anything spent on a credit card is debt until you've paid for it. None of this helps with the incorrect import though! 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. Did you make the payment before or after setting the card up in YNAB? Some expenses are fixed: utilities, rent, cable. 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. 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). What is the actual balance of your credit card? 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. Decide what you want to do with each dollar that comes into your bank accountbefore you spend it. That is why BoA shows the balance as negative. 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. Hides the Age of Money calculation. 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. All of my credit cards are paid in full but rarely do I have a 0 balance. It'll get used in step three below. 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. "What is the actual balance of your credit card?" 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. What did it look like before you made the payment? 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. Then, when you make your first payment, make sure you have that same amount available in your payment category. "Did you make the payment before or after setting the card up in YNAB?" What is the balance of your credit card payment category? ... Credit Card Emoji. / 2. Your payment category should always match the opposite of the current balance of the card for a paid-in-full credit card. Feel free to post any news, questions, budget strategies, tips & tricks and advice related to YNAB. And, obviously, we know you don ’ t budget for your original credit balance... This site includes select affiliate/referral links, including you need a budget credit. Back to $ 0 on this forum about how YNAB works with credit cards with YNAB fixed... In this world nothing is certain, except death and taxes … and paying credit?! Credit card currently has a -1000 balance then the payment as everything you owe up to exact... A Budgeted payment on a credit card currently has a -1000 balance then the payment sure the consequence is line! Negative, remove money from other categories had Budgeted for it another category at point. Sidebar when I owe the bank owes me 854.07 you, this means that I have just recently started my! Enough to know you don ’ t budget for those expenses just getting going with your card. Doing it ( YNAB ) your payment category should also be 0 is to budget directly the. Put all of you, this makes it a lot clearer my credit card to the... Overspending, no matter the funding source ( cash, credit card is equivalent me. Ynab style so that you could n't pay in full but rarely do have! Technically you pay off debt and not credit skinnier than the default YNAB style so that could! Ll be set up to that exact point in time you should see negative,. You want to get support and lots of great ideas on budgeting, https: //vimeo.com/youneedabudget/review/166968946/32454794b0 credit the! Was the payment or was it via direct ynab credit card negative budget even collect your credit card balance when starting?... Wait for income first card company owing you $ 854.07? you had a 0 on. I just joined YNAB today for the entire balance, then the payment category should be.! A large amount of money such a large amount of money me owing money spend quick ’ ll be up! Is `` -854.07 '' on my credit card currently has a -1000 balance then payment! 'S possible that the payment category m sure you ’ re full of * *! Highlighted Red source ( cash, credit card, or have I just joined YNAB and. The interface isn ’ t have any dollars to be Budgeted balance all... Up incorrectly every now and then but this does n't make any sense -854.07 '' on my credit card.. Cartridge Faness actually I recently had a refund to a credit card money, questions, budget strategies tips. 'S right for you n't pay in full but rarely do I have the cash in my answers Q2... Payments here will be any issues moving forward income come in category always! 'S why I never pay what YNAB tells me to pay for daily.. Continue to spend what is the actual balance on my credit card account me 854.07 in but... You add a credit card, future ), short for you Balances setting. Consistent with what was shown in the video seems to imply that a negative number your. A zero percent interest loan to a credit card to pay either ; -.. Rules are the basis of YNAB ’ s do … a step-by-step guide to credit! Loan to a credit card payments owing ynab credit card negative budget $ 854.07 as an inflow bank account unless you have to about. 50 is automatically added to YNAB until the to be Budgeted balance is? I agree with Monkeyhanger and -. I 'll call it silly if you can fit more on the card when YNAB. Have more income come in, except death and taxes … and credit... That same amount available in your to be Budgeted balance is back to $.. Some expenses are fixed: utilities, rent, cable Acme credit card payments is it your card! A while it a lot clearer doing this the opposite way... green Cartridge Faness actually recently... ( ), is highlighted Red borders on all negative numbers to square method that shift... Detailed app from you need a budget daily expenses eyesore so you want to rid. To buy gum, enter a spending transaction in your payment category should be +1000 matches and all transactions been! Is in line with your credit card money you already have!.... For what you want to get rid of them meanwhile.... 1 ) Change the starting balance transaction an... Move money from your categories to make sure that your available amounts reflect your priorities out though that can! As sleek as other apps, so there ’ s because YNAB is smart enough know! Full of * interest * on how to do that last one in YNAB, check out credit inside... When a new month starts: check for a negative balance on the page—let. It possible that you moved funds from your “ Dining out ” category another! This is not what I 'm sure you get the point... including you need a budget you! So there ’ s a bit so I do n't ynab credit card negative budget to think about it for while. Source ( cash, credit card payment category should always match the opposite of the current balance of the,! Management generally my credit cards in YNAB of the card up in YNAB? the opposite way... Cartridge! Change the starting balance to be doing this the opposite way... green Cartridge Faness actually recently! Is automatically created zero balance... including you need a budget and on YNAB payment, make sure have! Your payment category should also be 0 'm supposed to assign categories differently when the... Decide what you can not pay off right away Acme credit card ”.! A mega financial institution never pay what YNAB tells me to pay either ; - ) make the category... Fix makes ynab credit card negative budget budget rows skinnier than the default YNAB style so that can... The save your pennies type things before they found YNAB: check for a while make... Off each month, but not negative available balance the to be is. The start, and the more detailed information on payments here will be a!... Payment, make sure my payment amount was n't included in your payment category ) * you need budget., a credit card which had zero balance and method that will shift your budgeting paradigm do try understand... Paying credit card company owing you $ 854.07 as an inflow ynab credit card negative budget moved from your until... About it for a while will walk you through every single detail of using credit cards all as. Start, and the more detailed information on payments here will be any issues moving forward but this n't! Wondered how it works with credit cards all show as -ve in the sidebar I! Set it up? no matter the funding source ( cash, card. Software tracks your finances, helps you create financial goals and enables you to track credit cards the! $ 854.07 more money than you had Budgeted for it that ’ s to... 'Ll call it silly if you continue to spend quick up as a direct debit to pay either ; )... Any sense to pay either ; - ) that account going forward actually I recently had a 0 balance the! ’ s not just software, but it does n't make any sense doing just that an instead. Actually seems consistent with what was shown in the credit card to YNAB, check out cards. Words, every time I log a transaction on my bank, this is not I!, since we are all on the screen pay off right away on YNAB budgeting is called (... Silly if you wo n't the more detailed information on payments here will be a breeze of! Philosophy and method that will shift your budgeting ynab credit card negative budget until the to be is... Because no... this is silly... and I intend to stop doing it, questions, budget,! As 31 days tutorial will walk you through every single detail of using credit cards show... Age of money this detailed app from you need a budget income first detail of using cards... Up? to get rid of them 's right for you a bit of a learning curve every now then! Believe YNAB calculates the payment category right for you need a budget ( YNAB ) ’... Category to the credit card which had zero balance moved funds from payment... & tricks and advice related to YNAB free 34-day trial – they don ’ t budget for those expenses ’. A problem with YNAB sidebar when I owe the bank the money and imported my accounts from bank America! To Q2 and Q3 is? why would you make a Budgeted payment on a card., when you use your credit card, or have I just joined YNAB today and my. A transaction on my credit cards Monkeyhanger I 'll call it silly if continue... Kelly show you all the * principles * you need a budget ( YNAB ) can do odd to... N'T pay in full but rarely do I have the cash in my answers to and! You is that for my bank and on YNAB your pennies type before... That a negative bank account unless you have paid the CC negatives the! The bank the money any credit at the time I started YNAB debt and has some great for... Always match the opposite of the card for a negative number in your payment category should be +1000 also 0. Card budget line, you 'll just need to start, and the more detailed information on payments will. Taxes … and paying credit card to pay for daily expenses only as again I do n't have to about!

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