Joint Account with My Sister
I'm struggling to find a good set up for my current situation. The challenge: I share a joint account with my sister for some family matters. How do I manage that joint checking's account on YNAB?
- She doesn't use YNAB or wants to.
- I need that checking's account as a budget account and not just tracking so that I can categorize expenses correctly.
- I budget expenses and transfer funds from my personal checking's account to the joint account as needed.
- We usually fund that account 50-50. So 50% of that money is not mine.
Currently, I have added the joint checking's account as a budget account. And I am putting my funding and her funding as TBB so that when the time comes to pay expenses, I have enough budgeted $ to pay them. However, 50% of those funds and expenses are not really mine.
I appreciate any suggestions. :)
The ideal situation would be that you stop sharing the account, but that isn't very good advice because it sounds like that's a situation which is out of your control.
If the account is reliably split 50-50, here is what I would do. Create a separate category and call it Sister's Money. Budget 50% of the account's current balance to that category. The "job" you are giving to that money is "get spent by Sister however she sees fit". The remainder of the balance can be allocated among your own categories.
Going forward, log her transactions in this category--both inflow and outflow. If she deposits money in the account, you have two options: either earmark it directly toward her category, or just categorize it as inflow in the Sister's Money category from the start, rather that putting it toward To Be Budgeted.
The goal of this setup is to set aside a certain chunk of the balance that is untouchable by you. If you can identify how much of the account is available to you at any given time and how much is reserved to her, you can isolate her portion and do all your budgeting within your own.Reply
Hi Jess !
There isn't an easy way to properly adjust your Net Worth. If you create a Sister's Money category, like Gray Admiral mentioned, and record inflows there the amount won't be included in your Income vs. Expense report. However, your Net Worth is calculated by combining all of your account balances (including the portion of that account that doesn't belong to you). If you create an additional account and enter a negative amount to counter-balance the portion of the shared account that isn't yours, you'd have to manually adjust it with each transaction made.
Instead, you could leave the account as is and select not to include it at all in your Net Worth report. That would give you the Net Worth of just your accounts instead of including the shared account.Reply