YNAB You Need A Budget

[homer56]

Hi all, newbie here and I am wondering how to enter into the budget the following scenerio:

At my local grocery store I am able to write my personal check up to $20 over the amount actually spent, ex. I bought $25 worth of grocery for the week, wrote check out for $45 and received $20 cash back.
So when entering this into my checking account how should it be entered? The $20 cash I got back was spent on 2-3 different items (tanning, ice cream cone, smokes)?

Thanks one and all
homer56

[spinningwoman]

It depends how you deal with cash on ynab. You can set up a cash account, in which case the cashback money is entered as a transfer between your bank account and the cash account. Then when you spend the cash on something you enter that transaction as coming from the cash account.

Otherwise, it depends what the cash is for. If it is for personal spending, you could enter it as a 'personal misc' category spend of £ 20 even though you haven't actually spent it yet.

[HaploAW]

One option could be to create a walking around cash account and do a split transaction for the cash back as a transfer. Then track the spending from that into the appropriate categories. Another option is to create a cash category and do a split transaction with the cash back as in inflow to that category. Then all cash spending comes out of that category. Third way I see you could do it is same as option 2 but mark the cash back as spent and don't track any cash spending.

Those are just three ways I see of doing it. YNAB is pretty flexible to allow you to find YOUR way. One that works for your goals and habits. Just ensure you are not spending more than you have and you're golden!


Edit: Nix option 2. That may lead you to spending money you don't have....

HaploAW (from my iPad)
[img]http://tickers.TickerFactory.com/ezt/t/wytbPOo/debt.png[/img]
[img]http://tickers.TickerFactory.com/ezt/t/w5EEfg2/savings.png[/img]

[spinningwoman]

Sorry, should have said at the start that you can enter it as a split transaction, part grocery and part whatever the cash is for.

[blackdiamond]

I treat cash as personal fun money as a rule and use a credit card for as much as is possible. Cash is a mess to track in my opinion. Today I spend some cash on something other than fun money so I will go back and modify my last atm withdrawl to correct the split.

[homer56]

Thanks Spinning womman & Hap, for your insight I have set up and accomplished what I needed to, again many thanks!!!
BlackDiamond, I am just starting my budget, and in months past due to a once a month payday about 4 days before my check is deposited have written checks for over amount to pay for basic stuff till my paycheck hits bank, never more then 60 or 70 dollars.
Now thanks to the YNAB app i can budget for that last of month stuff and get away from the cash thing:)

[blackdiamond]

BlackDiamond, I am just starting my budget, and in months past due to a once a month payday about 4 days before my check is deposited have written checks for over amount to pay for basic stuff till my paycheck hits bank...

If you're writing checks to get cash to cover expenses doesn't that mean that the money is in your account? Are you writing post dated checks?

[spinningwoman]

No, I think homer is saying that in the past he has relied on the extra few days it would take for the shop to present the check and clear it in order to pull a bit of the next pay check's money before it actually arrives. He's not saying that is a good thing; hopefully now with ynab the money will stretch to the end of the pay period. I would guess most of us have done some dodgy things per ynab<g>.

[blackdiamond]

No, I think homer is saying that in the past he has relied on the extra few days it would take for the shop to present the check and clear it in order to pull a bit of the next pay check's money before it actually arrives. He's not saying that is a good thing; hopefully now with ynab the money will stretch to the end of the pay period. I would guess most of us have done some dodgy things per ynab<g>.

Man, that makes me shiver a bit inside to just think about doing it.

[litterbug]

It's a scary thing to do, but I remember doing it. Bad memories! Homer, no doubt this will be something you'll soon find yourself looking back and shaking your head at, much as I do about my own survival habits.

[blackdiamond]

It's a scary thing to do, but I remember doing it. Bad memories! Homer, no doubt this will be something you'll soon find yourself looking back and shaking your head at, much as I do about my own survival habits.

I suspect that the risk of this is less than that of a payday loan that should come with a shovel and coffin.

[virago317]

It's a scary thing to do, but I remember doing it. Bad memories! Homer, no doubt this will be something you'll soon find yourself looking back and shaking your head at, much as I do about my own survival habits.

I suspect that the risk of this is less than that of a payday loan that should come with a shovel and coffin.

Actually, it's a crime (in most places) to knowingly write a bad check. Just saying. And checks clear much faster now with electronic processing, so this is really quite risky. Not that payday loans aren't a dangerous trap as well. Definitely a great idea to stay clear of both!

[litterbug]

Actually, it's a crime (in most places) to knowingly write a bad check. Just saying.

Don't I know it! I knew it was immoral but never even considered whether it was legal. I was 20, and not very smart about the world.

And checks clear much faster now with electronic processing, so this is really quite risky.

Several years ago I was cutting it close (writing a check late in the evening based on the paycheck that would electronically enter my account at midnight) and became very annoyed when they used a machine that scanned it to ensure I had the funds to cover it, as if it were my right to float checks!