Categorizing an travel insurance claim

I recently received some money from a travel insurance claim.  How would you categorize it?

Option 1: Inflow: To be bugeted since I can spend it on anything I want.

Option 2: Vacation - treating it like a partial "refund" on my vacation.  Except in my case, the actual vacation expense was 3 months ago before I started using YNAB.   By categorizing it as vacation, I feel like I've reserved the money for future vacation expenses by increasing the available balance.

Thoughts?

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  • Either way will work fine; the only difference is what shows on your reports.

    I think I would go with Inflow: To be Budgeted, myself. This is money you can spend on whatever you want (including vacation, of course!); it doesn't really represent "negative vacation spending" in this context.

    In other words: if you get a $1000 from the travel insurance claim and categorize it as Vacation, and then take a $1000 vacation, YNAB's reports will tell you that you've spent nothing on Vacation since starting your budget, which doesn't seem very useful.

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  • Any return should be categorized back to the original category. In this case, the vacation outflows were wrapped up in the starting balance, so that original category is actually TBB.

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  • Matthew said:
    YNAB's reports will tell you that you've spent nothing on Vacation since starting your budget, which doesn't seem very useful.

    I like this line of reasoning - especially since it is a claim against a vacation expense prior to using YNAB and in a priot year.

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