Ah, ok!—in that case you don’t need to budget for the credit card payment at all because each transaction will be from an envelope and will go against the credit card balance. Just be sure the card is set up to Pay in Full, then your transaction will show the envelope and the card/account.
Your available funds are calculated by adding your bank account balances and subtracting the amount due on your “pay in full” credit cards. This is how much you can put into your envelopes. (Long term debts like loans and revolving charges aren’t calculated against your funds on hand)
When you pay the bill, you’ll simply do an Account Transfer from your checking account to your credit card but no envelopes will be involved in the payment. It won’t change your available money because the checking balance goes down but the credit debt is relieved at the same time.
I hope this is helpful—it sounds convoluted but it’s really pretty elegant in practice!
1 Like