Entering a loan and reflected net worth

I have a car category where I already saved some money and also got a loan for 10k which hit my checkings account today.

I do want to track this loan. It is a private loan from my family, there is no other record of it on how much I still owe or already have paid. And ynab is my only financial tool for personal finances I use.

I have read the articles, why I might not need to track a loan and I don't track my student loan. Just budget for it every month. I want to track this one.

I set up a tracking account with 0$ balance and then made a transaction from that account to my on-budget checkings account. The problem I have is that in the net-worth report my assets got  up 10k as my debt got up 10k. as well. So the change to my net worth zeros out, which doesn't accurately reflect my finances.

I do have some 'hacks' in mind, but all of them would mean not tracking how much I actually have spend for the car. I understand ynab is a budgeting tool, not an accounting software. But is there an option where I could mark the transaction from debt account to checkings not be counted towards my assets?

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    • bevocat
    • Sometimes, It Just Sucks to Be You
    • bevocat
    • 1 yr ago
    • Reported - view

    How does it not accurately reflect your finances? You have $10K added to your checking account; you owe a $10K loan. It should zero out to your net worth. What is it you're expecting it to do?

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      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 1 yr ago
      • Reported - view

      If you mean that you're going to use that money to buy a car, then that's fine. Record the transaction when you purchase the car and categorize it to your car category. At that point, if you wish, you can create an asset for your car's value (which I wouldn't, and you'd have to stay on top of the depreciation) or don't, and your net worth will show the way it's supposed to, depending on whether you want the car's value to affect your net worth.

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    • bevocat Is that how net worth is meant to work? Maybe I'm misunderstanding that. My assumption was that, I would just add 10k in debts without adding anything in assets. It's not money I really have. I have loaned it.

      I thought. If I had 5k net worth before, my net worth after entering the loan would be -5k.

      And yes, I do not want to add my car as an asset.

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      • adriana01
      • adriana01
      • 1 yr ago
      • Reported - view

      Green Sloth you received the money from family, correct? So you have 10k more in checking, and you have a 10k debt. If your net worth report shows all accounts, not just on budget ones, you would see no change in net worth.

      Think about it this way: if you got a cash advance from a credit card for 500 (bad idea financially, but a simple illustration). The credit card balance would become more negative by 500, and your cash account balance would be 500 higher, but net worth is the same.

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    • adriana01 Ah 💡

      When I'll spend the money (in a week or so), my net worth will change to the amount I expect it to be. Thank you both very much.

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      • bevocat
      • Sometimes, It Just Sucks to Be You
      • bevocat
      • 1 yr ago
      • Reported - view

      Green Sloth You got it.

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  • 1 yr agoLast active
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