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Paid ALL Credit Card Balances & More

June 14th, 2016 at 03:20 pm

We use our credit cards for all purchases that we can. Yes, at one time we stopped using credit cards (thus the name Creditcardfree). But we are super good about paying them off on time. In fact, I effectively make at least two payments a month when payday comes around.

Tomorrow is payday. All transactions since the last paycheck were posted on YNAB, thus the money is set aside to make the payments. Today, I logged on to each account we had a balance with and paid them in full. Easy!

I should mention that we don't really use YNAB the right way. We don't 'Live on Last Month's Income'. Part of the reason for this is we have more in our checking account than we spend each month. The other is we have an emergency fund in other places to count as a buffer. And finally, because we use credit cards and generally pay them off within two weeks of the transaction, we have a buffer with the due date of those transactions if needed.

What we do is count each paycheck as income for current month. In our case two paychecks each month. We then budget that money into categories to cover us until the next payday. We do fund variable accounts like car maintenance, vacation and other various savings at the same time. These accounts slow build up, and yes at times get depleted.

In YNAB we can still see how much we budgeted for monthly expenses and how much we have left. Usually we have plenty. I can also adjust the amount in each category if I didn't guess/estimate right at the beginning of the pay period. After several months, it gets easier to see how much you are spending in each area and the amount to budget.

3 Responses to “Paid ALL Credit Card Balances & More”

  1. Ima saver Says:
    1465919518

    I use my credit cards a lot every month. I do it because I earn reward money for everything that we charge. I always pay everything off in full and I just can't turn down "free" money!

  2. rob62521 Says:
    1465937971

    I use my credit card quite a bit simply because I like using their money and fewer checks to write. Like you CCF and Ima, I pay our balances off each month.

  3. VS_ozgirl Says:
    1466038113

    Very good explanation!

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