Cash Tracking without Cash Account
Hi all. I have read the post on tracking Cash. I used to do it with a cash account and really got tired of tracking my cash expenses especially when I didn’t make a lot. So I am trying my hand at using just a category, and/or budgeting any cash to a cash-spending category or directly to the specific category I’m paying with cash.
MY DELIMA is that I have just received a payment from someone in the form of cash. Is there any workaround to categorizing it so I can spend it in a few certain categories (groceries, gas, etc) or do I need to make a trip to the bank, deposit it, and use my check card? I just hate making th 45-min trip if I don’t have to.
You have 4 options:
1) Deposit the money to an on-budget account
2) Create a cash account
3) Ignore it in your budget and spend it
4) Do a Zero-sum split transaction with an inflow to TBB equal to the amount of the cash received and then an outflow to the category you plan to spend it (or multiple outflows if you plan to split among more than one category). This will add to your TBB, which you can then budget anywhere, since money is fungible. You have more cash spent in certain categories, so you can use money remaining in your accounts for something else.