Can I track a loan?
Hi all, I'm a newbie here! I have loaned money to a family member, and I would like to keep track of his repayments and loan balance. Is this something YNAB can do? Thanks!
Yes. It's a tracking account. It kinda manual. You create a new tracking account and enter the balance. When a payment is made, you enter it twice, as far as I can tell. You enter it into the tracking account to reduce the loan amount, and you enter it in your budget accounts (like checking), then budget it out (leave as TBB in your transaction and hope over to the budget page to fill up categories with the funds).
Welcome! The most helpful thing for me was the YNAB book. If you don't have a copy of the book at your library, I created a list of content on YNAB that matches the book, mostly. The list is at https://support.youneedabudget.com/r/q5w48j
Mama O'Munchkins I do this all the time for my kids. I have one tracking account set up for each of my kids. I have 4. I set them up as asset accounts. when I loan them money or buy something I expect to get paid back for I do a transfer from my on budget account with a category to the tracking account. The amount in the tracking account is a positive number and it is what they owe me.
When they pay me back it is a transfer from the tracking account to my on budget account categorized to the loan category. The balance in the tracking account what is left owing.
Here's what I do:
1. Create a tracking account of the asset type
2. When the money is loaned, the loan is a transfer from one of the on budget accounts to the Loan tracking account, with a category on the budget side that makes sense for that transaction. (This is one transaction when you create it, but it records in both accounts). Since the Payee is the transfer to account info, I put the person & reason in the memo field.
3. The Loan tracking account has a positive balance because this is money that I am owed
4. When repayments are made, the transaction is a transfer from the Loan account to the proper on budget account. The on budget side will need a category. If I am repaid in the same month, I will use the same category as originally to reduce the amount it shows I spent in that category. Beyond that same month, I'm not really sure it matters whether it is put in TBB or a category, except that if it is put in a category it will reduce the amount of spending, or possibly show positive activity for the month.
Other people have found other ways to do this, but I found this works best for me as I find it easier to track.