When you make a payment towards Credit Card 2, you'll need to assign the withdrawal side of the transfer to a bucket. Treat it like a loan and just pay it off, but do not charge anything on it. You would not want to use Credit Card 2 anymore for your spending plan purchases. You'll treat this account like a loan account and use a debt reduction expense bucket to track allot payments to it. The other credit card (Credit Card 2) may have a balance that you'll pay-off over time.
Why do I have two credit cards? One credit card you might be using and paying off each month (Credit Card 1).You still have the option to make monthly expenses on your Credit Card 1 or your using your Checking Account (Transfer Rule 1) The amount of money that you had available to spend during the month hasn't changed. You should not assign either side of the transfer to a bucket (you didn't cross the line). You make a credit card payment from Checking Account to Credit Card 1.This has not effectively decreased the amount of money you have to spend each month (though you may need to consider making adjustments and increasing how much you allocate towards debt reduction). You will not assign this expense to a bucket. Interest is assessed against your Home Equity Line of Credit.The money you have to spend on a monthly basis has not changed, only your net worth has changed (Spending Rule 2) Your retirement account grows in value-you will not assign this deposit to a bucket.You've planned for this expense in your spending plan, and you'll assign this transaction to a bucket (Spending Rule 1) You'll assign this transaction to a bucket (Spending Rule 1) You buy groceries that you have accounted for in your spending plan with you Checking Account debit card.You would 1) need to track what the money is for separately or 2) just use the Savings account for emergencies, or 3) have a separate Savings account for each type of expense. This setup doesn't allow you to know what the money in Savings is for. The case against this type of account is that it is difficult to use the account to save for different kinds of purchases. Since spending less than your bucket balance guarantees you won't exceed the money you have available, and since most of the money you have available is in your checking account, it follows that you probably won't exceed your checking account balance when you make a purchase that doesn't exceed the bucket balance. You would only need to know what the bucket balance is. Generally, if you don't run your balances to close, then you wouldn't need to concern yourself with the checking account balance before you made purchases. Typically, the bulk of the money in your buckets would be stored/saved in a single checking account if you don't include a savings account. Now, the case for/against not including your Savings account in your bucket totals.
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