Mistaken charge that will be refunded (In a week)
Hi! I recently changed my auto insurance. I cancelled my policy before payment was due, but they auto-deducted my regular premium today. I called and they will be issuing a refund on the 28th.
So my question is - currently, it's showing as an overspend in my insurance category. Do I just leave it as an overspend and reconcile when I get the refund? Or do I move money from other categories until I get the refund?
The hardline view is that your budget should reflect reality. The reality is that money is no longer in your account, so you should cover that expense until you get your refund. If you have enough of a buffer that it's not a material issue to you that that amount is missing, the softer touch would be to just let it ride and rectify itself on the 28th.
Coral Unicorn said:
If for whatever reason the refund doesn't come through
Actually, leaving it as an uncleared transaction would call attention to the fact it hadn't come through at the next reconciliation (and the next...), prompting me to investigate.
Yes, you could enter the "refund" in the scheduler for a similar prompt. Again, this is the preferred option when funds are tight.
I just prefer less effort. 🙂
Coral Unicorn said:
the hardline view suggests your budget should reflect reality
Again, I am discussing credit overspending, and YNAB has no hardline stance against it. In fact, they recommend leaving the category overspent when cash is needed elsewhere or as one approach to reimbursements (which is effectively what this is). As they are the ones who drew the "line", I very much doubt they would make a recommendation that crossed it.
The entire reason for the hardline view is to maintain accurate spending guidance. I'm sure you'll agree that every penny of every green category is backed by cash in-hand. In fact, you probably already know all of this, so it's mainly for the benefit of the OP.
I'm not saying leaving it yellow/overspent is the only option. But I am saying it is an option that is recommended by YNAB themselves and that it requires the least effort.