Help - loan repaid as cash!

Due to Christmas followed by a long period of illness, I left my budget for a  number of weeks and am spending many hours trying to sort it out.  As a result my head hurts but I am nearly there.

Perhaps because I have spent too much time looking at my budget, but I can't work this out.  I lent my Mum some money a couple of months ago which went into my loans and expenses category.  She repaid me in cash while we were out at dinner a couple of months ago and I completely forgot about it and spent the money - not sure what on just day to day random spending - it was only a small amount.

How do I account for this in my budget?

Many thanks!

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  • You could record an inflow into your cash account with the loans and expense category - guess at the date.  Then record cash outflows for what you spent the cash on.

  • Hello, MiniMum ! Hope you're on the mend.

    Daily Impressions 's suggestion will work.

    Here's another method that might be a little simpler, since you don't remember exactly what you spent the cash on.

    Are you looking to replenish the Loans category in anticipation of giving another loan? If so, move money from some of your daily spending categories (approximating what you spent the cash on) to the Loans category.

    If you're not looking to replenish the Loans category, you don't actually need to do anything in your budget—other than perhaps reconciling your cash account to make sure it equals your current cash on hand.

      • MiniMum
      • Blue_Thunder.4
      • 1 yr ago
      • Reported - view

      Matthew I don’t have a cash account to log cash transactions. We just allocate cash to the category at the point it’s withdrawn. 

      I also don’t intend to “replenish” the loans category as such. I just log loans out and then top up the category to zero when it’s paid. 

      So I need to do something in my budget or that category is showing a debt. 

      Surely if I just move money into the loans category that won’t work as it’s money that isn’t on my budget anywhere. My budget has not been told that’s it’s been received  So covering that payment with money from within my budget won’t work will it?

    • MiniMum Ah, I understand!

      Here's how I would interpret the situation. You received cash that you intended to deposit and then use that deposited money to zero out the Loans category, right?

      Instead, you spent that cash on something else. Let's say Groceries.

      That means your loan has been repaid, but you now have less money to spend on Groceries. However, YNAB doesn't know either of those things yet!

      So you'll move money from the Groceries category to the Loans category. That will update your budget to reflect both facts. (Of course, you can use multiple categories to cover the negative amount in the Loans category—it doesn't have to be just one.)

      Will that get your budget back on track? Please let me know either way!

      In the future, I'd recommend not leaving a category overspent when you're loaning cash. Any time you have cash overspending in your budget, it means you can't trust your other categories. Instead, budget money to the Loans category first, before making the loan, and set a target balance goal on the category to remind yourself how much you've lent out.

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      • MiniMum
      • Blue_Thunder.4
      • 1 yr ago
      • Reported - view

      Matthew ok great thanks. I was getting confused by thinking the budget doesn’t know that I now have the money but because it’s been spent the amount in my budget is correct. 

      I am happy with my method of running a negative as I have a very large buffer so am effectively just borrowing the money from myself. SettinG up goals etc is fiddly and confusing. Simpler for me to just know how much I am owed and can then track that loaned amounts and expenses are repaid easily. I appreciate that wouldn’t work for people who don’t have savings/buffer etc. 

  • MiniMum said:
    my method of running a negative as I have a very large buffer

    It should not be an issue then to reallocate and avoid the monthly fight with the tool. (If you put $X in Mum's category and the category is less than $X, you are owed. Pretty simple.) Your call, of course.

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