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Credit Card Spending Is Prepaid Cash
- YNAB treats credit-card spending as cash that must be set aside before spending, using an automatic credit card payment category as a holding place.
- The app moves money from spending categories to that credit-card payment category when purchases occur on a card, which can feel like background movement.
YNAB Reveals The Credit-Card Float
- Setting up credit cards in YNAB often reveals the 'credit-card float' where people live on next month's income to pay last month's charges.
- That visibility can be confronting because the budget shows the true gap between spending and cash available.
Categorize Returns And Cash-Back Intentionally
- For returns or cash-back applied to your card, categorize the inflow back into the original spending category to reflect the return.
- If the inflow comes from outside the budget, categorize it as Ready To Assign so it reduces what you owe without auto-moving budget cash.