Entering Student Loans
I'm going back to school and want to keep track of my student loans and debt.
I paid for one loan on a 0% interest credit card, and entered it under the spending category "Tuition" and the Account is my Credit Card. I also entered a student loan from the government under spending category "tuition" and the Account is "Student Loan." But now my budget is minus thousands of dollars. I'm sure I'm doing this all wrong.
What is the best way to enter and track student loans? Obviously I'm not in school for economics, lol.
If you're currently using the loan funds, they had to get to you somehow. Are they on a credit card? Did they send you a check? Or put the money directly in your bank account?
My loan money was disbursed into an account with a "credit" card. You'll put that account in the budget and spend from it. You'll want to set it up as a checking account, because YNAB doesn't like positive credit cards.
You'll also have a tracking account for the loan that you owe the lender. Before you spend anything from the loan, there should be a net zero impact on your net worth. As you spend from the loan, net worth will go down.
The negative amount in the tracking shouldn't be in your budget, but the positive amount you are using on budget will allow you to budget and spend the loan money.