Creating a transfer budget for a liability
Some loans or debts are not associated with a transaction account that can be connected to PocketSmith. If this is the case, you can add the loan or debt into PocketSmith as a liability then create a transfer budget. This budget will help you to track your progress as pay off a debt.
In this user guide
Tracking debt in PocketSmith
Setting up a liability on the Net Worth page
For loans or personal debts that don't have a transaction account connected to PocketSmith, you can instead add them as liabilities using the Net Worth page. The Net Worth page allows you to see all your financial assets and liabilities, such as your house, mortgage, car or car loan etc, all in the one place. Learn how to add a liability here: Adding a liability to Net Worth
Using transfer budgets to track a liability
You are able to track payments towards a liability that you've set up in PocketSmith using a transfer budget.
Liabilities in PocketSmith are different to your bank and transaction accounts because they don't actually have any transactions attached to them. This means that transactions alone won't affect the balance of a liability because there are no transactions imported into PocketSmith within the liability. This is why you'll need to set up a transfer budget to account for payments towards a liability.
A transfer budget tracks your budgeted expenses when paying down a debt and automatically reduces the amount owing on that liability on the date of that budget.
You will need:
- A liability
- A category (where you'll assign the expense transactions that pay off the loan)
- A budget
Setting up a transfer budget for a liability
- Head to Budget & Reports > Budget
• If you already have a category set up for your repayments, click
Start on the category
• If you have already created a budget for the category, click the three-dot menu on the budget row and select Edit / Delete
• If you need to start fresh with a new category, click + New budget. This will open up a new Start Budget window. Under the Category field, add a name for your category e.g. Car loan repayments
- Input the amount, start date, and frequency of your repayments
- Under Type & Scenario select the account that you will be repaying the loan from
- Under Transfer select the liability where the payments are going to
- Click Update or Save
- In the Confirm Updates window select one of the bottom two options to ensure that this change is applied to all future budget events for this budget category
Now you have set up your transfer budget — yay!