Using your YNAB Credit Card
Making money is not always easy, however, in most cases, there is always a long list of things we need to do. This has made the need for budgeting very important. This need for budgeting motivated the creation of the YNAB credit card, with YNAB being an acronym for ‘You Need a Budget’.
Just like most other credit cards, it can be used to make a diverse range of payments. The major thing that differentiates it, however, is the fact that it encourages to make a budget, within your income and then you can easily spend comfortably without going out of your budget.
Even though credit cards give us the opportunity to spend more than we earn at a particular time, that does not take out the fact that it makes us become indebted. The implication is that we will be spending money we are yet to work for, keeping in mind that there will always be new expenses as well.
What causes YNAB Credit Card Debt?
If the cause for debt will be stated in just one word, then that one word is overspending. When you spend more than you earn, then you are certain to be in debt. One of the most effective means that have been proffered to avoid or limit overspending, is budgeting.
With budgeting, you are able to keep in view how much you earn, while planning your spending for the period of time before your next payment. During this process, you should be able to carefully differentiate between your needs and wants, make sure you take care of your needs first, then you make the budget for emergencies, which should be a percentage of your earnings and also have some money you save. After that, you can now consider your most desirable wants.
Emergencies come in different ways and not budgeting for them, is the reason why a lot of people go into debt. The YNAB credit card encourages you to spend within your budget and thus, be able to stay free from debt. How to make YNAB credit card payments will be discussed next.
What can you use your YNAB Credit Card to Pay for
The YNAB credit card is a general purpose credit card that could be used to make a wide range of payments. This could include payment of rent, utility bills, medical bills, and transportation bills. Other bills you could use the card to pay for include tuition fees and groceries shopping among others.
Making manual YNAB credit card payments
To make a manual YNAB credit card payment, you should check the amount to be paid for your particular card, then select ‘add a transaction’ from your checking account. After this, you should put in an amount to be transferred to your credit card account from your checking account.
You will not need to select any category since you are just sending money from one account to the other. Put in the same amount as stated in the amount to be paid for your particular card. It is also possible to automatically import a payment into your account.