I have searched this out, read several posts and replies, and my mind is just not wrapping around it.
My situation: I am at the tail-end of paying off my credit cards. I have paid $12,000~ since August 1st and I have another $2,000 to go (just a couple more weeks). So, I am currently making three types of card payments: 1) monthly payments and 2) weekly lump payments to an individual card to pay down the debt; 3) In the mean time, I have started using one of the cards to pay regular expenses like groceries, ect., to take advantage of the rewards, then paying the transactions off at the beginning of the next week.
The types of CC payments I’m making and transfers:
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Monthly Credit Card (CC) Payments: I understand this fine. If you are using a CC like a debit card and pay it off every month, this makes total sense to transfer.
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Weekly lump sum payments to an individual card: I don’t understand how this can be a transfer as it is such a non-regular expense. I am also budgeting in another independent spreadsheet how I am doing this, so it is in fact, budgeted, if nothing else in my mind. A transfer would hide the transaction’s worth to the budget.
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My third use, buying regular stuff with the CC is much akin to Monthly CC payments and I understand that fine.
Second Transfer Type
Mortgage and vehicle loans:
- Is my mortgage and vehicle loans not an expense? My credit union has my mortgage and one of my car loans. Therefore, in my bank account, it looks just like a transfer, but as far as budgeting in Tiller, shouldn’t my mortgage and vehicle loans look like expenses? I don’t understand this.
Regarding mortgage, yes it’s an expense. My mortgage is simply its own Category line item in Categories:
Debit from your spending account
Category = Home Loan Name
Group = Home (this can be different for you; maybe you put it in your Bills group)
Type = Expense
Credit to your loan account
Category = Transfer
Group = Transfer
Type = Transfer
Others may do something different on the Credit side of the equation but I just make it all Transfers.
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This is what I figured out for my credit cards with paying $1,500 down on my CapOne each week. This is the way I’ve done it for every card you see since Aug 1, I’m just at the tail end of it all and the CapOne is all there’s left. I sort of just figured this out yesterday afternoon. If you’re seeing this in the future, feel free to ask questions.
So, essentially this for the mortgage setup? If so, this is how I set it up last night after a lot of pondering. I really haven’t seen it done this way in the Community Forums.
Interesting discussion @wilsonhines . This thread may also help. This is how I handle these types of expenses in my own sheet as well, and there is no right or wrong way to handle it.
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Your line 5 is what I do for the Mortgage debit and budgeting for it. I actually do not have an individual “Mortgage Trans” category like you have on line 6. Mine is Transfer/Transfer/Transfer like I listed above and I hide Transfers from all reports anyway. They are just churn in the Transactions sheet.
There could be a more accurate accounting rules method to account for this on the credit side but I don’t find that necessary for me for this scenario.
