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.
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.
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.