I start out with $10,000 in my checking account, and no credit card debt: The only time you would manually budget money into the credit card spending category is if you have old credit card debt that you are trying to pay off. The money will already be there from when you entered the credit card spending transactions. If you always pay your credit card bill in full, you never have to budget money manually into the credit card category. This is handled automatically, so you don't have to think about it if you don't want to. The only difference here is that with new YNAB, the funds are deducted from your credit card category. It is entered as a transfer of money from your checking account to your credit card account. When it comes time to pay the credit card bill, you also enter this transaction in the same way as before. The only difference is that in YNAB4, this money was considered "gone." Now, that money moves from your budget category into the new credit card category. When you enter a transaction, money is pulled out of the budget category you select. You enter credit card spending transactions in the same way as YNAB4. However, I have played around with the web version a little, and here is what I have discovered.ĭespite the different look of the credit card account and the lengthy dissertation on the credit card differences in the Transition Guide, credit cards are handled almost exactly the same in the new YNAB as they were in YNAB4. I've been using YNAB4 for the last few years, and I like it so much that I haven't switched to the web version (new YNAB) yet. So how is the "Credit Card Payments" category supposed to work in YNAB? The first option seems too tedious, and the second option seems like it doesn't really reflect the reality of how credit cards work. So if I thought I'd charge $600 for the month, but I only charge $500 for the month, then I have $100 roll over to next month. Budget ahead of time how much I think I'll pay to my credit card into the "Credit Card Payments" category, and then hope that how much I spend is under how much I budgeted.Go to each of those 15 budget categories and manually subtract the amount of money I spent, then add it to the "Credit Card Payments" category.Over the course of a few weeks, I make 20 transactions from 15 of my YNAB categories and create a total debt of $500. Say that I have $0 on my credit card at the start of the month (so no debt). However, I can't wrap my head around how I'm supposed to actually use the credit card categories in practice. It notes that you still need to pay it back, which comes later. The transition guide gives a story of going to buy a shirt, which you put on credit and have to pay back. One of the big changes to the web version of YNAB is that credit cards are handled differently, as described in the YNAB 4 transition guide. I am using the web version of You Need a Budget (YNAB) after previously using YNAB 3 and 4.
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