Budget Nerds

#86 - Cash Categories vs Cash Accounts

Mar 20, 2024

Ben and Ernie discuss managing cash in YNAB, comparing cash categories and accounts. They explore fungibility for simplified money management. Debate over using pennies, cash vs. credit cards, and reconciling cash transactions. Listener shares success with appliance repair/replacement category.

40:13

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Quick takeaways

Tracking cash in YNAB can be done through categorizing expenses or a dedicated cash account, each offering unique benefits.

Utilizing a cash account in YNAB streamlines financial management by simplifying cash transactions and enhancing budgeting accuracy.

Deep dives

The Variability of Cash Handling in YNAB

Handling cash in YNAB can be approached through categorizing expenses or through a dedicated cash account. The podcast discusses the advantages and drawbacks of each method. For individuals dealing with minimal cash usage, categorizing transactions may suffice. However, maintaining a cash account can offer more precision and flexibility in tracking expenses.

Introduction

2min

Cash Categories vs. Cash Accounts in Budgeting

17min

Simplified Money Management Through Fungibility

2min

Discussion on Categorizing Transactions and Reconciling Cash

2min

Rethinking Cash Transactions: Eliminating Pennies

4min

Cash vs. Credit Cards: The Debate

12min

Financial Success with Appliance Repair/Replacement Category

2min

In today's episode, Ben and Ernie discuss what to do with cold, hard cash money. For many YNAB'ers debit and credit card spending fits nicely into the YNAB paradigm, since YNAB can interface directly with financial institutions and pull online banking data. Cash transactions, on the other hand, can create a stumbling block since they exist outside the easily trackable, traceable online banking system. Some decide to just not track cash at all. Cash is money, however, and it probably should be part of your spending plan, so Ben and Ernie recommend tracking it in YNAB. It's not that hard!

There are essentially two ways to track cash in YNAB: in a "cash" category, or in a cash account (there's a special cash account type you can select in YNAB). Ben and Ernie break down the pros and cons to each approach.

Share your YNAB wins with Ben and Ernie!

budgetnerds@ynab.com

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