How Do I Deal With Sending Money to Venmo And The Actual Venmo Withdrawal From My Account?
So I pay my rent with Venmo. I have to fund my Venmo account so I send X dollars to Venmo and register it on my Budget as "Rent". But then, when my roommate actually takes the money from my Venmo account it's like another transaction even though I just want to keep track of one transaction--my rent for the month.
Does anyone have a solution for this? Maybe I'm making this too complicated. I'm very new to YNAB and am still trying to understand the system.
Based on what I've read about Venmo (no personal first hand experience), I would enter the transfer to Venmo as the transaction for rent. When your roommate takes the money, you mark the transaction as "cleared".
If I left cash out on the kitchen table for my roommate to pick up, I would also consider that money spent. If I come back into the kitchen a day later and the cash was still on the table, that doesn't mean it's still mine even though I could pick it up and repocket it.
If you want to have your Venmo acct on budget, Gold Sound , you would record the moving the money from checking to Venmo as a transfer, which doesn't require a category because moving money between your own accounts doesn't change your budget - think of moving HappyDance 's cash from your left pocket to your right; you still haven't paid the rent with it yet. Then the rent transaction would be recorded in your Venmo register (taking the money out of your right pocket and putting it on the table).
Disclaimer: I don't use Venmo; I use Zelle, which is similar.
There's no need to have a Venmo or Zelle account in YNAB. As Vibrant pointed out, it's just a pass-through. I use Zelle to pay my quarterly block-association support.
I make the entry in Zelle directly to the block association, and reflect it as such in YNAB: Payee "West 20th St Block Assn," categorized as a donation to the association, with a memo indicating the year and quarter. Your payee can be your roommate/landlord, category can be "Rent," with the month and year in the memo. It's a simple transaction.
I record incoming $$ the same way: payee is who sent me the money, category is what it's for, memo if necessary. There's no need to indicate it came through Zelle.
When I use venmo to pay someone, it just pulls directly from my bank account. There is no need for me to send money to venmo ahead of time. If I have a $0 venmo balance (which I usually do) someone can charge me for something, and when I accept the charge it will just come from my account. Then I can categorize that outflow to rent, dinner, etc.
It seems like you're making extra work for yourself by sending money to venmo first.