Using your Credit Cards

How should I handle new purchases I want to make with a credit card?

Just like any other spending, it’s important to start with your Budget when thinking about your credit card spending. 

Step 1: Go to the Budget.

Click on the Budget in the sidebar to move to the Budget.

Step 2: Budget an amount toward Categories for which you will be using the card.

Budgeting for new purchases using a credit card is part of budgeting for your expenses in general. If you are going to use the card to pay for groceries, you need to have an amount budgeted for groceries. Remember to only budget money that you have.

Here’s the most important part: It does not matter whether you pay for your budgeted groceries with a credit card, with cash, with a check, or with a debit card. Any time you categorize a purchase as groceries, you are spending part of what you budgeted for groceries. This is true regardless of what form of payment you use.

The only difference with spending on a credit card is that, while it affects your Budget right away, the money remains in your checking account until you send it to the credit card company. This is unlike spending with a debit card, when the money leaves your Budget and actual account at essentially the same time. What’s most important is that, whatever payment method you’re using, you make spending decisions based on the balances of your Budget Categories.  

The important thing to remember is that the act of using the card to purchase something is when the budgeted expense happens, even though the money doesn't leave your checking account until a few weeks later.

How do I record spending I made with a credit card?

Recording any new purchases you make on the card is just like recording purchases made by check or debit card, and they affect your Budget in the same way.

Select the account for the credit card you used to make the purchase and enter an outflow transaction for the purchase.

Learn how to enter outflow transactions.
Learn how to record a payment on the credit card.