Shared credit card
Which can be the best way to account in the following situation?
I have a shared credit card with my Dad. I spend an x amount to give him back with a immediate bank transfer (like revolut). But he tell me I can keep an y amount.
For example. I spent 1000 this month, I should give my dad 1000 with a bank transfer, but he tell me that 900 is ok. How can I account for this 1000 difference?
Your Dad is very generous. I would treat the difference between spending and what he asks you to pay the same way one treats a rebate from a credit card company (e.g. my credit card gives me points from certain purchases that I can cash out for a reduction in my balance).
There are a few posts (and I think some official YNAB content) on different ways to handle credit card rebates, but here's how I do it.
When I spend on my card, money from the categories I spent gets reallocated to the card. Let's say I have $1200 ready to pay my card, having made $1200 in purchases after starting with a zero balance. A lot of my recent purchases qualified for rebates, so I'm getting $150 statement credit from the bank.
- I enter a card transaction for $150 inflow from the bank. This raises my credit card balance, giving me a balance of -$1050, up from -$1200.
- I move $150 from my credit card's budget to "Ready to Assign". This will probably make my budgeted amount a negative number, but that's fine. My available money now matches the $1050 I actually need to pay.
- I assign the money from Ready to Assign to my priorities, as I would any other income.
Hope that helps!