So you’ve discovered that you’re riding a credit card float. Sure, it’s a bummer but it’s not all bad news. In fact, to point out the obvious: the only thing that has changed is your level of awareness.
Before: I pay my credit card(s) in full every month and never incur interest charges or fees. What could possibly go wrong?
Now: Ack! I’m borrowing against my next paycheck to pay for current expenses.
Awareness, my friends, is half the battle. The next step is to get off the credit card float.
The following tutorial details exactly how to set up your accounts and the steps to follow each month until you get off the float. This tutorial is for users of the new You Need A Budget (YNAB) web-based subscription software (sometimes referred to as nYNAB). I’ll be following up with a tutorial for YNAB4 users soon. The idea is the same but the setup is different.
Let me know if you have questions. If this tutorial is helpful, a kind word in the comments would not go amiss.
Float Loan to Self [FLTS] Tutorial for nYNAB Users
First: I recommend beginning with a fresh, clean budget. That will be the quickest, easiest, and cleanest way to get started and move forward. However, if you are deeply invested in your existing data, you can introduce a FLTS without starting fresh but it requires extra steps and can prove to be messy. Skip to the end of this tutorial for instructions on how to integrate your existing data into the FLTS method.
Second: This tutorial focuses on how to set up a FLTS while skimming (or even skipping) over general nYNAB skills and knowledge. The YNAB developers have provided their own resources explaining the YNAB methodology and the software. The Float Loan to Self [FLTS] methodology, for both YNAB versions, is my own work developed to better serve my clients.