Temporarily borrowing money from family
I had to make a large expense of about $6500 in September. In order to make the expense I temporarily borrowed money from family. They sent me $5800 in August, but told us we only needed to pay back $5200 (the rest was a gift). We then received $5400 from another source in September, and used that to pay back the $5200 in September as well. It's currently showing as follows in the Income vs. Expense report:
It's showing a negative amount in the income section because we immediately paid back family in the next month. Is this the correct way to do it?
Hey, there! Based on this report, it seems like when you paid the money back to your family you kept the Payee the same, made the category Ready to Assign, and recorded the payment as a negative outflow. Is that right?
We recommend using the Ready to Assign category for inflows, and using spending categories for outflows. What that would look like in this case is creating a category for the loan payback (or using a category like "Stuff I Forgot to Budget For") and categorizing your payment transaction with that spending category. In your Income v Expense report, you'll see the outflow listed in the Expense section. :)