How do I register an advance in my salary from my employer?
I received an advance in my salary from my employer. Let's say $600 to make calculations easy. I have to return it in 12 months, so that's $50/month.
I'm not sure what the best method is to register it. I've tried both a line of credit and a liability, but neither convince me completely.
I'm a minimalist about representing debt in my budget, so I wouldn't do anything.
When I started using YNAB almost 7 years ago, I was very obsessive about tracking this and that and this and that and keeping this savings here and that savings there. What I've learned is that each time, I wind up eventually undoing whatever machinations I put in my budget so that I would be clear about "my money" vs. "others' money." Twice in these 7 years I've gone back and re-budgeted multiple years' worth of data where I had created some convoluted budgeting scenario to account for the fact that I "owed" money to myself somehow. I ultimately wind up deciding it's all my money and I don't need to spend time tracking it that way. It's all just money. It all flows through my decision-making process.
In April, you'll have income that is $600 higher. For 12 months, you'll have income that is $50 lower. In April, you'll budget $600 more than typical. In later months, you'll budget $50 less than typical.
That's all it ever needs to be.
Categorize as TBB, as it's clearly income. The main question is what to do in the budget, which depends on whether you need that money now for something. Assuming not, I would stash 11/12th of it in a category and release 1/12 back to TBB each month. (In this case, budget -$50.)
Primary advantage is the rest of the budget never sees a difference. (Your paycheck is $50 less, but you release $50 from the category.)