Author Topic: [Budget] How to manage receivables/payables?  (Read 914 times)

sakura

  • 5 O'Clock Shadow
  • *
  • Posts: 28
[Budget] How to manage receivables/payables?
« on: November 15, 2016, 10:49:38 AM »
Hello my dear mustachians!
Ive started a few months ago to track and compare my expenses vs. budget. I'd like to know from more experienced people whats the best way to register the following situations
  • I am with someone and we spend $100 together, but for simplicity I pay for it all. Later my friend will give me his $50 in cash or will pay for another shared expense of the same value - or as it happens sometimes, he will forget about it. Should I put $100 as expense today and afterwards add his $50 back as a refund? Or should I just put my share $50?
  • I pay for a vacation flight in my credit card today, while the real cash flow expense will only happen next month and the real trip will only happen in 3 months. What do I do here?

FYI I use splitwise app to track on shared expenses with BF and close friends. And I use Monefy app to track expenses but im not very happy with it. I cant search on the app nor can I send the database in excel to my email. If you have cheap suggestions for apps thatd be very helpful too!
[/list]

runningthroughFIRE

  • Bristles
  • ***
  • Posts: 339
  • Age: 26
  • Location: Northwest Indiana
  • As heavy as it needs to be to make you stronger
Re: [Budget] How to manage receivables/payables?
« Reply #1 on: November 15, 2016, 11:19:38 AM »
Personally, I don't have a strict budget, but I do carefully track spending each month.  I don't have a policy of lending anything to anyone and expecting to get it back.  All "loans" are gifts as far as I'm concerned, so I put down the full amount when I spend it, and add the repayment back in if/when I'm paid back.  For credit cards, I also count the spending in full when I charge it on my card.  If it's a big ticket item I have been saving up for, it'll have its own budget line and will go against that.  If it's not a big ticket item, then it's a routine purchase and it'll get paid off at the end of the month as if I'd paid cash anyways.

In my opinion, all spending is cash out the door - it doesn't matter what method you used to spend it.  My spreadsheets are set up with that in mind though, so do what works best for you.  It's your budget, so you can set it up however it helps you save money and track your spending.

As for apps, the Mint app works fine for me but I do most of my actual expense tracking on a desktop computer.