I’ll let you in on a little secret about Rule Two: it’s the ultimate debt prevention tool. If you save money for the car repair, you won’t have to reach for the credit card when it breaks down. No debt payments (with high interest rates) to deal with later!
YNAB removes this ambiguity using a special “Credit Card Payments” budget category. Whenever you make a purchase on a credit card, YNAB moves that money from the relevant budget category into “Credit Card Payments”. Every time you spend with a credit card, YNAB moves that spending to the...