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1. #You need a budget credit card payments full
2. #You need a budget credit card payments software
3. #You need a budget credit card payments free

In a nutshell, when you start YNAB, you will manually enter your account balances, including credit card balances (the total as of the day you start using YNAB). After you’ve got the basics down, there is a class specifically on using credit cards.

#You need a budget credit card payments free

I recommend watching the free live classes if you are new to YNAB. When the bill comes, the money will be in your checking account waiting for you. However, in reality the money hasn’t gone anywhere.

The budget sees money spent with a credit card as just as gone as cash that left your hand. You are spending money that you actually have, not money you hope to have by the time the bill is due. Spending according to the balance of the budget categories, rather than the balance of your checking account makes credit card use safe. All the while, you are setting some money aside so that you can eventually “ live on last month’s income,” meaning you can budget for the entire month at the beginning of the month because you have a month’s worth of income available to work with. When you get more income, you can fund more categories. If you always spend according to the money available in each category and record all your transactions (the mobile app makes this really simple), you are spending money that you have. When you spend, the amount of money available in that category is reduced. As you receive income, you allocate that income to your spending categories. With YNAB’s method, you only spend money that you have.

#You need a budget credit card payments software

The budgeting software that forever changed our budgeting is called YNAB (pronounced “why-nab”), short for You Need A Budget. You are excited that you can have an awesome, functional budget and still have the perks of credit cards.

#You need a budget credit card payments full

You pay your credit card in full each month, before it accrues any interest or fees. You like the convenience, safety and rewards that a credit card provides. If you’re still reading, I imagine you are like us. If you are deep in credit card debt, stop reading this and choose one of these awesome articles on debt. If you are uneasy about using credit cards because you’ve been irresponsible in the past, don’t start using them now. We all know that abstinence is always safest when it comes to credit card use. In fact, it’s probably the safest way to use a credit card! A Quick Disclaimer I thought you had to use a cash envelope system to make a zero-based budget work.Īs it turns out, credit cards work extremely well with our YNAB zero-based budget. Does using credit cards on a zero-based budget seem like an impossibility to you? It did to me at first, too.