Confused On How To Use Cash To Pay Off Debt With YNAB

Hi everyone! I have a question that I need help with. I've decided to do a lot of side jobs to pay off my credit card and my student loans. However, these jobs are along the lines of babysitting, housesitting, and pet sitting so most of the times I get cash as payment instead of a check or a direct deposit. 

How do I use this cash to pay off a credit card if I don't have an easy way to access a bank to deposit this money? 

I use a bank that doesn't have an actual location in Hawaii so what should I do with the cash that I have? Should I move money out of my grocery category or gas category to my payoff debt category and then use the cash for the categories that no longer have money? That's the only solution I've been able to come up with so far.

Any suggestions guys? I definitely would appreciate them.

Thanks everyone!

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  • I personally would just create a cash account and that way you don't have to mess with your other categories. Once the cash account is created, the money will be in TBB and assign it to your debt categories. Then just pay for groceries or gas out of your cash account.

    Also, ask your clients if they can pay by Venmo or Paypal or Zelle.

  • Create a cash account if you don't already have one. I named my cash account Wallet.  I also have a CashStash account for cash I keep at home.  I like to have a bit of an emergency stash there, plus when I'm feeling lazy, I can replenish my wallet from that stash and fit in a cash withdrawal at a more convenient time. Money coming into the budget in cash is an Inflow: To Be Budgeted in your cash account. These funds can be budgeted to whatever category you want.

    The funds in your gas or groceries is not tied to an account. You just enter the transaction in whichever account you are using:  cash, cc, chequing, gift card.....

    Read this YNAB blog entry on The Relationship Between Your Accounts and Your Categories.

  • I always recommend that if you receive lots of cash income, a cash account is the way to go. There are some other options for people who only spend in cash and don't spend it very often, but if you receive cash frequently, a cash account is the best way to handle it. It will make the cash just as fungible as any other part of your budget, so you'll receive $40 for babysitting, put it in the cash account, budget the TBB to your card paydown, and then turn around and spend the actual bills at the grocery store and the budget won't flinch. 

    • Kate
    • Joyful Technical Writer ๐ŸŒด
    • sweet_sunshine
    • 1 yr ago
    • Reported - view

     WordTenor HappyDance jenmas Hi everyone! I counted three votes for creating a cash account so I decided to go ahead and make an account called "My Kate Spade Wallet" and put my current amount of babysitting money in it. I've never created a cash account but I can tell it will help me become a lot more accountable with my cash. My babysitting money is now sitting in my grocery fund and a small amount is now sitting in the credit card debt pay off category. (Yaaaaaaaay! ๐ŸŽ‰๐ŸŽ‰๐ŸŽ‰๐ŸŽ‰๐ŸŽ‰๐ŸŽ‰)

    Thanks everyone for the suggestions!! I totally forgot that I could create a cash account in YNAB. ๐Ÿ˜…

      • QC
      • HaplessFinanceProfessional
      • Queenofcoin
      • 1 yr ago
      • 1
      • Reported - view

      Kate  I'm normally loathe to withdraw cash from my bank account but I get cash from the likes of selling unwanted items, or friends and family paying me back for dinner etc.  Having a cash account in YNAB creates a lot of accountability over that money.   Enter your cash transactions immediately or keep your receipts until you can enter.  I find cash just leaks out of my hands to the tune of having to do $20+ reconciliation adjustments!! ๐Ÿ˜ต๐Ÿ˜ค

      Like 1
  • Kate Thank you so much for starting this topic. As a new user, I was having the same issue :)  Thanks also to everyone one who replied in answer.

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    • Khaki Storm
    • YNAB book topics online:
    • Khaki_Storm.1
    • 1 yr ago
    • Reported - view

    Are you a credit union member? I've been a member for decades and didn't know there was a credit union exchange program of sorts. I can go to almost any credit union, tell them I'm with a member credit union such-and-such, my account number, and get treated like one of their customers. I can deposit cash, withdrawal cash, have papers notarized, etc.  

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