YNAB You Need A Budget

[RoboLobo]

Good morning everyone. Today's question: let's say I have two roommates. We each pay $400 rent. At the end/beginning of the month they each write me a check for $400, and I in turn then send our landlord a check for $1200. That's how in works in my bank account: $800 deposit, $1200 check written. It just sort of bugs me that I have to YNAB-budget $1200, even though my own share of the rent is $400. It sort of makes me look that I have to buffer a lot more money than I actually need to, but I can't think of a way around this. My name is on the lease, so if my roommates were to skip town I would still owe the landlord $1200, so maybe I should just grin and bear it? Thanks for any and all advice

[katsjack]

I would just budget the $400 you are actually spending. When you deposit the $800 from your roommates, categorize it as an inflow to "Rent." When you pay the $1,200 the net effect of the two transactions will be the $400 you have budgeted and you will have zero remaining in the category balance.

[blarg]

I would just budget the $400 you are actually spending. When you deposit the $800 from your roommates, categorize it as an inflow to "Rent." When you pay the $1,200 the net effect of the two transactions will be the $400 you have budgeted and you will have zero remaining in the category balance.

That's exactly how I'd do it. If it all happens on the same day, you can even enter it as a split $800 inflow and $1200 outflow, both in the Rent category.

[RoboLobo]

Thanks for the advice. Unless I am a real thickie, this concept of being able to categorize money coming in as an inflow rather than income is new and different. Pretty cool, actually. Are there any other scenarios in which this concept might be utilized? Thanks!

[sarahspangles]

Are there any other scenarios in which this concept might be utilized? Thanks!

Here's a couple:

You pay a bill and then get a credit or discount for early payment - enter the income under the same category and you can see the true cost of that service. Similarly if you buy something that doesn't work and you return it, credit the same category and then you "get the money back" to get a new one.

If you sell something second-hand, like clothing, you can choose to treat it as income. However, you could credit it to the clothing category and then in the budget it can go towards replacing items. This is what I'll be doing tomorrow - Ebaying clothes I don't wear to boost my budget to buy things I will wear!

[rollercoaster]

Thanks for the advice. Unless I am a real thickie, this concept of being able to categorize money coming in as an inflow rather than income is new and different. Pretty cool, actually. Are there any other scenarios in which this concept might be utilized? Thanks!

Another way that I utilize this is interest earned on our checking accounts and rewards debit card rebates. I inflow that money directly to my "DisneyWorld" fund. It is my way of passively funding that category while I'm paying down debt and don't have the money to actively fund it. Yes, I *could* use that money to put toward debt snowball, but it's a very small amount, and being able to see that travel fund grow by even a couple dollars a month is rewarding and helps to keep me on track with YNAB. Pre YNAB, those deposits would have barely been noticed, and would have just been absorbed into the daily spending something like this: "there's money in the account so let's eat out."

[jjsouth]

I think most of what's been said goes for me as well. Any time I get a reimbursement for my expenses, I enter it directly into it's category: friend gives me money for gas, husband's work expenses, rebates, returns, etc. And like mapster, I enter interest directly into a category. For me it's my emergency fund. When that's fully funded, I'll decide if I want to change that. I'm about to have a garage sale to sell most of my daughter's infant items. That will get deposited directly into her category in my budget that I use to buy the things she needs.

Joyce

[RoboLobo]

Thanks again everyone for all the advice! To slightly change the subject (and I do apologize for asking questions that have probably been asked and answered a million times alrrady): I did a little perusing through the Forum archives regarding Flexible Spending Accounts, and I pretty much decided on the same solution that I will be using regarding the rent: simply record Flex spending purchases as (usually medical) outflows, and then record reimbursements as inflows, and not worry about my Flex account balance. Is everyone copcetic with this plan?

[malisab]

I set up an account for mine because it's a use-it-or-lose-it and it's the fiirst year I've done it. I need to keep the balance in my mind so I don't leave any money in it when our fiscal year ends. DH was going to get new glasses that undoubtedly would be beyond our provided benefit, but he hasn't dine anything about it and seemingly can't be bothered. So I'm going to go get some new prescription sunglasses if he doesn't move on them soon.

If I wasn't worried about the balance and losing it, I'd do what you suggest.