How do you handle casual expenses payed buy you but shared with friends which need to return their share of the expanse?

Hi all,

I'm wondering how do you handle expanses you pay for but also get some "compensation" later on from the people who shared it with you. for example:

1. Dinner with a couple of friends. you paid, they transfer money to your account the next day.

2. Went to a family wedding, my parents gave me extra cash so I'll give an even bigger check to the newly weds.

 

The issue is in my categories it would be seen later as if I spend 3 times as much on dining out(in the case of example 1) and miraculously had extra money to budget for it that is not out of the regular paycheck.

I'm currently thinking it will make my annual reports not reflect the true nature of my income/outcome. perhaps I need an extra category for casual money that I recieve for certain stuff, yet again, I then have to split up all these casual expanses into: 1.whatever category it actually is 2. ppl owe me money category. so pffff, any ideas?

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  •  I was pondering this recently. I finally came to the conclusion that my reports will actually show the correct spending because it takes refunds into those categories into account in the math. 

     

    So my current example, I have $60 assigned for gas in the month and so far I have not touched it. I paid for my boyfriend's gas yesterday, it was $40. I categorized that negative transaction to the gas station in my gas category so now I have only $20 to spend on gas. He paid me back today, so I categorized his payment to me basically as a refund, so directly to the gas category (not RTA). Now I have my $60 back in my gas category and on the Income vs Expense report it doesn't show any activity in my gas category.

     

    So as long as you treat those repayments as refunds, everything in reports and even average spending on your budget screen accurately shows YOUR spending

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  • If the window between the payment and the refund is long, you might be better off to know the reimbursement workflows: https://docs.youneedabudget.com/article/183-reimbursements

    It's equivalent to what Emma Catherine said but it explains what happens at the month boundary if you have an overspent category because of a reimbursable expense.

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