How to track loan that I'm receiving payments from
I gave a loan to somebody and they are paying me back and set up an amount as a direct depot to my bank account. What is the best way to track this? Separate unlinked account with the positive loan balance? How can I get the inflows sorted so it doesnt show as my income and only a loan repayment? Thanks all!
Hi Sameer Merchant !
I have a similar set up with a close friend. In my budget, I have a Tracking Account with the amount owed on the loan (ie. $1,000). Every time I receive a payment, I make a transfer from the Tracking Account to my Checking account (since it's a direct deposit to your account, you'll just need to change the payee to a transfer). This updates the balance on the loan and adds the funds back to my budget.
I categorize the deposits as Inflow: To Be Budgeted, since those are funds being added to my budget that I can now categorize anywhere I'd like. If you don't want those inflows to show as income, you can categorize them directly to your Reimbursement category (or, whichever category you originally used for the loan) and then use the move money tool to put those funds where you'd like.