Record loans while they are growing?

Hello fellow YNABers,

After more than a year of using YNAB, I stumbled uppon a predicament: Until now, it was possible for me to work whilst studying. Thanks to my masters that is no longer an option. So I decided to get a student loan.

Now I have a question for you guys because there are two possibilities here. I could just record the incoming money and ‘forget’ about the dept part until I actually need to start paying it back (sometime around November next year).

Or I could create a racking account for it now and let it drop into the depths of debt.

I’m conflicted and would love to hear your thoughts on the matter.

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  • How will you feel seeing the loan in your net worth right now? Will it motivate you positively or negatively?

    Really, the loan is just going to be another bill you'll have to pay. You don't need it in YNAB at all now or even when you are paying it off, since you can just budget for the payment once you have to start paying it back.

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  • Looking back, I wish I had been more on top of the amount I borrowed and how much I owed while I was in school. Maybe seeing the balance would have motivated me to make payments while I was still enrolled. I avoided everything to do with my loans until the grace period had expired and I had to make payments. I did this because seeing the balance really stressed me out but I think facing reality would have been better for me in the long run. 

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  • Interesting. Both the options here ha. I thought about this a bit further and I think I'm not going to enter it for now. It will be stressful. And I know exactly how much I will owe in the end because it is a set amount payed over a few months. Plus there is no monthly interest, just a one time payment of fees which is collected with the last check I get (so the last month I get less of course). 

    Once I need to pay it back I will however enter it. Just to see how much I will have to pay and watch the networth grow. 

    This way I avoid stress about a thing I can't change right now. And then when I can change it I have that red number to keep me accountable and motivate me. 

    Thanks a lot! You helped both :)

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