• 10 Posts
  • 42 Comments
Joined 1 year ago
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Cake day: June 13th, 2023

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  • Hey I’m so sorry I’ve been a bit negligent of attending to the community needs as I’ve had a family situation to attend to.

    What I will make clear is that you should only budget money you have IN HAND, and never budget money you’re owed and do not have. If you want to use YNAB to track the debt, I personally have a tracking account for money owed to me and make transfers into the category I paid it out of when the money is paid back. I utilize the memos here extensively to explain why the debt was incurred and so on and so forth.

    The problem with keeping it in budget is that you shouldn’t have anything in your budget with a negative balance. Otherwise you can’t trust your budget. YNAB will yell at you if you do this. The money needs to be squared away somehow which is why I’m suggesting you use a tracking account.

    Of course you don’t need YNAB and can just track it externally and then treat the debt payments received as income into your accounts on budget.

    All of this being said, please don’t take on such a massive debt for a friend in the future. It’s a huge liability and can ruin friendships. I can see you’ve handled it appropriately but I can only hope it didn’t get messier than what you’ve already described.