If I were to borrow money from a friend or family member. Here is what I’ve worked out so far. Please let me know if I’m on the right track and what else I might be missing.
- Setup a manual liability account with the amount owed
- How do I record the initial inflow?
- Record payments as either transfers or expenses
- expenses if I want to budget for the payment. Transfers otherwise?
- Manually adjust the balance of the manual account each month after the payment.
Another note / question is I think I did something wrong here or in some other setup because my cashflow for the year in my yearly budget and the change in my net worth don’t seem to line up. Any advice on reconciling this?
I’ve done this. I set up a manual account (in Google Sheets: Extensions menu → Tiller Money Feeds → Manual Accounts) with Class = Liability and Type = Loan.
I categorized the initial inflow (and the corresponding outflow) as a Transfer to avoid messing up my budgeting and actual income. You could also treat it as income with a corresponding expense.
I categorize loan payment transactions from my checking account as expenses in a category corresponding to the purpose of the loan. Then I create a corresponding manual transaction (in Google Sheets: Extensions menu → Tiller Money Feeds → Tools → Add Manual Transaction) in the loan account with Type = Deposit, Category = Transfer, and Update Balance in Balance History checked. This takes care of the transaction into the loan account and updates the loan balance.
1 Like