Would it be dumb to put my monthly credit card bill as one big expense instead of breaking it down into different smaller purchases? I feel like something I get hung up on in budgeting is putting in all my utility bills into recurring expenses but then some of them are on my credit card so I put it in twice, or I’ll make a one time purchase like a plane ticket and am not sure whether to list it separately or lump it in with paying off my monthly credit card bill. I hope that makes sense
Credit cards pay today’s expense with future money. Only record interest/fees, not payments twice.
A credit card isn’t a bill. Track expenses as they happen, only list interest/fees as expenses.
Yes, it’s ineffective to budget one big credit card bill. Track individual purchases for better planning.
I’m using virtual envelopes for fluctuating expenses and savings, like cosmetics, clothes, and gifts.
If you’re occurring interest/have a balance then don’t use the credit card until it’s paid off.
If not, just include the item with your budget and pay off the card each month on autopay.
I itemize each transaction on my credit card according to expense category.
I itemize each transaction on my credit card according to expense category.