Work Expenses

Hey everyone, I am new to YNAB and could use some advice. I have a personal credit card with a low interest rate that I use only for work expenses. I will get reimbursed in the middle of the following month. The amount I use this credit card every month are unpredictable. Is it worth it to try budget for these expenses or should I not?

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  • Hi! Happy Holidays! I would personally take the highest month you have ever had for the work expenses and you that as a guide to put money aside in advance especially in case your credit card bill is due before you get the reimbursement. 

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  • Hi! Thank you for this suggestion :-). I will definitely be working to put money aside for work expenses. Using my highest month as a guide should work. Sometimes I have to spend $1500 per month and sometimes $200 so I'll see how that works out in January.

    Thanks :-).

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  • Great! If you spend less than you budgeted for, then that will carry over and you will be ahead of the game. 

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  • If I use that credit card only for reimbursable work expenses I wouldn't budget for it at all and would let my work expense category always be overspent.  i would then budget any reimbursements i get directly to the credit card payment category. I personally think this better reflects what is happening and doesn't needlessly tie up any of my personal funds.

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      • Hilariaun
      • hilariaun
      • 1 mth ago
      • Reported - view

      Herman Thanks for this response. If I do this, maybe I shouldn't enter this credit card, work expenses or the reimbursements into my budget at all because it would theoretically correct itself when I get reimbursed. Would this make sense to do or am I out to lunch?

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      • Herman
      • herman
      • 1 mth ago
      • Reported - view

      Hilariaun I would want to track it so i could see if I'm ever negatively impacted by my employer "borrowing" money from me.   But if they are reliable with reimbursement before I ever had to come out of my own pocket to avoid interest on the card not including it in the budget at all would be reasonable.

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      • Hilariaun
      • hilariaun
      • 1 mth ago
      • 1
      • Reported - view

      Herman Thanks. I never had an issue with not getting reimbursed. I keep all my expense reports as well. But yeah I guess for the sake of interest I should keep track at least until I get my work expense fund built up.

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  • Thanks for the suggestions  Shara Herman, this helps out a lot :-).

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  • Hi, Hilariaun! If you haven't seen it already, our Helpdoc on Reimbursements might be helpful here. In this case because you're using a work credit card for only work expenses, you can include this in your budget:

    1. Track all of your business spending on the card in one category called something like, "Business Expenses to be Reimbursed."

    2. If you trust that you'll be reimbursed monthly in time for the bill to be paid, let those credit charges stay overspent in the category.

    3. When you get your reimbursement check, add it as Inflow: Ready to Assign, and assign it directly to your Credit Card Payment category so you're ready for the payment.

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      • Hilariaun
      • hilariaun
      • 3 wk ago
      • Reported - view

      Dela Thanks, I will try this method 🙂.

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  • I would just make the credit card a Tracking Debt account.  Then when reimbursements come in to my bank account, name them "Payment To: {credit card account name}".  I wouldn't want to manage a category I don't care about.      You mentioned it has a low interest rate, but you're paying it off every month with that mid-month reimbursement right? 

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      • Hilariaun
      • hilariaun
      • 3 wk ago
      • Reported - view

      Budget Conquistador Yes, I get reimbursed and pay it off on the 15th of every month.

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