The problem with this mindset is that it inevitably leads to debt. If we overspent a little here and there, no big deal-we were happy as long as we paid for the charges made during the statement’s cycle. Yikes! David and I had always been perfectly happy paying only the statement balance on our card. It’s possibly even worse than living paycheck to paycheck, and it’s insidious because many people don’t even realize they’re riding the float! And by “people” I mean David and I… Yep, We Were Floating But the problem is that, once you pay off the credit card, you don’t have enough cash left to live on until your next paycheck…so you’re forced to use the credit card to make ends meet. You pay off your entire credit card bill every month (avoiding dreaded interest payments). The credit card float is tricky because, on the surface, you might think you’re doing OK. It turned out that if you’re on the credit card float, you’re effectively living on next month’s income-money that you don’t yet have! And you’re a far cry from achieving Rule Four, to live on last month’s income. Context made it obvious that this was something to avoid, so I did a little more research. It was in my early days of employment at YNAB when a new term came across my computer screen: “credit card float.” And, just a few months later, I applied for an opening at YNAB and was hired as a part-time support rep… That’s When I Met the Credit Card Float It was budgeting love, right from the start. Thankfully, we found YNAB and ditched our spreadsheet/envelope system for The Four Rules.
It was chaotic, but we were desperate to save up enough cash to move to England. (If you value peace of mind, I don’t recommend this technique.) apartment that I shared with my husband, David.
YNAB CRACK CRACK
And then there was the collection of money envelopes that I’d hidden in every crack and crevice of the L.A. From beef to granola, if we bought it, I recorded it. Before YNAB, I went to some extreme lengths in attempt to save money.įor starters, there was my overly complicated spreadsheet where I tracked our grocery spending in detail.
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