How to deal with money owed.
Hello. I have a question about how to handle money I am owed. My partner owes me money for something I have paid for in December. It will take her several months to pay me back. I paid for it out of my checking account and created a 'Pay Back' Category for this item in my Budget. The amount shows up red and negative in the 'Available' column for this Category in December and does not appear there in January.
I thought that I could keep track of what she owes me by creating this Pay Back Category but since it does not appear in the next month's budget (at least not in the this category) I do not know how to deal with this amount. Also, how should I have dealt with this in December?
Thank you in advance for any help with this.
Since the cash is actually now gone, you should budget to clear that overspending. Ideally, you would have budgeted to that category ahead of time to have funds Available to be loaned, but catching up now is a good second option.
Ifyou budget $500 to that category, then as long as the balance is less than $500 you are owed the difference. Simple.
You can even set a Goal for the amount you budgeted, which does the math, telling you exactly what is owed (the difference).