When I first started with YNAB it took me awhile to really understand how Credit Cards worked in my budget but once I understood it I think it's absolutely brilliant. The way YNAB handles CC was the thing that really sold me on the software and the principles behind it.
Thanks for explaining that credits should be categorized as Ready to Assign.... even though it doesn't impact the actual Ready to Assign in the budget. I just started YNAB and received a large return on my credit card. The original purchase was before I started YNAB so it was never in the actual budget. It made my credit card payment go red/negative and I COULD NOT for the life of me figure out how to fix it. Finally, I tried categorizing it as "Ready to Assign," and I worked, but didn't know why or whether it was correct until now. So thanks!
Best explanation of credit cards I’ve seen for YNAB and I’ve been using the tool for a number of years. It’s complicated and the written tutorials do not really “show the math.” Thank you. Please do some follow up videos. For example, I suggest you explain the activity information for the credit card payment category. This is confusing in that my credit card due date is mid month and it’s always confused me why I, after I pay off the card, the activity is not equal to zero.
Thank you! The activity field in the CC payment category is confusing, and I recommend ignoring it. That number isn't going to tie back to any numbers you find on your actual CC statement. The main number to focus on in the payment category is what you have available. Hope that helps! ~Ernie
When I enter a cc reward, it is moving the $ to "ready to assign" as though it is additional cash flow, and not taking it from the cc balance, I believe that I have followed the instructions to the letter. I have messaged the chat box but am hoping to resolve this asap!
The only time a CC reward that is categorized as Ready to Assign would produce money in Ready to Assign is if the reward made the balance go positive. support.ynab.com/en_us/credit-cards-with-a-positive-balance-an-overview-By_H6uzJo Do you know if this is what happened? ~Ernie
But what if you have several CCs with interest that you are paying over time.. How to you handle this? Do you put all of the cards interest in one “interest” category together?
Yes, I would total up the interest that I will be charged on all those cards - just an estimate with enough of a buffer to guarantee you won't come up short - and allocate that amount to your Interest category. Then, when you're charged interest on each card, you will record it as a transaction under that card (the payee can be whatever you want but I usually go with the name of the credit card company; the category will be "Interest.")
37:00 why does YNAB not do this automatically? I pay my cards in full every month and I always have to manually deduct statement credits from my available balance for my CC’s. It gets a little tedious
@@YNABofficial Could there be a flag/checkbox added for those who pay off cards in full every month? I carry no CC debt so the statement credits are always excess money I could move to RTA.
In the case your CC balance is already 0, an inflow to the CC categorized as RTA, goes to your budget RTA as well as decreasing your CC balance? Where as if you have a a CC balance, it only decreases that without affecting your budget RTA?
Always categorize the refund back to the original spending category! If in that next month your Credit Card Payment category goes negative after entering the return, move the money back to the Credit Card Payment category from the original spending category. ~Ernie
When I first started with YNAB it took me awhile to really understand how Credit Cards worked in my budget but once I understood it I think it's absolutely brilliant. The way YNAB handles CC was the thing that really sold me on the software and the principles behind it.
Thanks for explaining that credits should be categorized as Ready to Assign.... even though it doesn't impact the actual Ready to Assign in the budget. I just started YNAB and received a large return on my credit card. The original purchase was before I started YNAB so it was never in the actual budget. It made my credit card payment go red/negative and I COULD NOT for the life of me figure out how to fix it. Finally, I tried categorizing it as "Ready to Assign," and I worked, but didn't know why or whether it was correct until now. So thanks!
I really enjoy when Ernie works on the workshops.
Very helpful. Thanks so much for doing this video!
Nicely done! The light bulb in my head just flickered on. Thank you for the vid. Big help!
Thank you so much for this video! I’m new to YNAB and so excited to see how it helps us pay off debt
this man is the best!!!!!
Love your videos ! Thank you Ernie.
The best explanation! Thank you!
Best explanation of credit cards I’ve seen for YNAB and I’ve been using the tool for a number of years. It’s complicated and the written tutorials do not really “show the math.” Thank you. Please do some follow up videos. For example, I suggest you explain the activity information for the credit card payment category. This is confusing in that my credit card due date is mid month and it’s always confused me why I, after I pay off the card, the activity is not equal to zero.
Thank you! The activity field in the CC payment category is confusing, and I recommend ignoring it. That number isn't going to tie back to any numbers you find on your actual CC statement. The main number to focus on in the payment category is what you have available. Hope that helps! ~Ernie
Thank you, that was great.
When I enter a cc reward, it is moving the $ to "ready to assign" as though it is additional cash flow, and not taking it from the cc balance, I believe that I have followed the instructions to the letter. I have messaged the chat box but am hoping to resolve this asap!
The only time a CC reward that is categorized as Ready to Assign would produce money in Ready to Assign is if the reward made the balance go positive. support.ynab.com/en_us/credit-cards-with-a-positive-balance-an-overview-By_H6uzJo Do you know if this is what happened? ~Ernie
Very good tnx
But what if you have several CCs with interest that you are paying over time.. How to you handle this? Do you put all of the cards interest in one “interest” category together?
Yes, I would total up the interest that I will be charged on all those cards - just an estimate with enough of a buffer to guarantee you won't come up short - and allocate that amount to your Interest category. Then, when you're charged interest on each card, you will record it as a transaction under that card (the payee can be whatever you want but I usually go with the name of the credit card company; the category will be "Interest.")
That’s what I do.
37:00 why does YNAB not do this automatically? I pay my cards in full every month and I always have to manually deduct statement credits from my available balance for my CC’s. It gets a little tedious
I think you migh not have linked the account
Because not everyone wants to remove the statement credits from their payment category. Some keep them in there to help pay off debt faster. ~Ernie
@@YNABofficial Could there be a flag/checkbox added for those who pay off cards in full every month? I carry no CC debt so the statement credits are always excess money I could move to RTA.
@@TT92348 that would be a great feature request! If you want, you can submit here ynab.typeform.com/to/Pt6cek ~Ernie
In the case your CC balance is already 0, an inflow to the CC categorized as RTA, goes to your budget RTA as well as decreasing your CC balance?
Where as if you have a a CC balance, it only decreases that without affecting your budget RTA?
How do you handle a credit card refund in the next month? Would you still assign to the original category and have a negative spend for that month?
Always categorize the refund back to the original spending category! If in that next month your Credit Card Payment category goes negative after entering the return, move the money back to the Credit Card Payment category from the original spending category. ~Ernie
First!
Mr. Credit Cards
I only use the Mobile feature so.. not helpful
This is such a braindead comment 😂