How to Track Cash in YNAB (Without Losing Your Mind)
Still Using Cash? YNAB Can Handle That.
Why Cash and Digital Budgets Don’t Always Play Nice
Cash is still king in certain parts of life—whether it’s tipping the babysitter, buying donuts at the school fundraiser, or grabbing last-minute gas at a rural station.
But if you’re using YNAB and primarily budgeting digitally, tracking those cash expenses can feel awkward. It’s easy to forget transactions or throw off your category balances if you’re not careful.
At Master Budget Coaching, we’ve helped dozens of clients bridge the gap between physical cash and YNAB’s digital system. The good news? YNAB makes it entirely possible—you just need a consistent process.
Step 1: Set Up a “Cash Wallet” Account in YNAB
The easiest way to start is by creating a dedicated account called “Cash” or “Wallet.”
Think of this as a virtual version of your physical wallet. Any time you withdraw cash from your bank, you’ll record it as a transfer from your checking account to your “Cash” account in YNAB.
Here’s how:
- In YNAB, add an account (select “Unlinked”) and name it “Cash” or “Wallet”
- When you pull out $100 from the ATM, record a transfer: $100 from Checking → Cash Wallet
- This keeps your total net worth intact, but now the money exists in your physical possession—and in YNAB’s digital mirror
Step 2: Categorize Every Cash Transaction—Just Like a Card
This is where most people get tripped up. Once the cash is in your wallet, it becomes invisible unless you manually log the spending.
Every time you use physical cash, treat it just like a debit card transaction:
- Enter it into the Cash account in YNAB
- Assign the correct category
- Add a memo if needed (e.g., “Tip for haircut”)
The key is frequency. You don’t have to log it instantly, but try to enter cash transactions at the end of the day or week while you still remember them.
Tip: Use the Mobile App or Voice Memos
If you’re out and about, open the YNAB mobile app and quickly jot down the expense. Can’t do that? Use a voice memo on your phone, or snap a picture of the receipt and enter it later.
The more friction you remove, the more likely you’ll stay consistent.
What If You Don’t Remember How You Spent It?
It happens. You withdraw $100, and three days later, it’s gone—and you can’t remember how.
Here’s what we recommend:
- Create a catch-all category in your budget like “Untracked Cash” or “Forgotten Expenses”
- If you ever have to reconcile your Cash account and the balance doesn’t match, assign the discrepancy to that category
This prevents your budget from becoming inaccurate and lets you acknowledge the gap honestly.
Use “Refill Up To” Targets for Ongoing Cash Use
If you regularly keep $50–$100 in your wallet, consider setting a target using YNAB’s “Refill Up To” feature.
Example:
- You like to carry $80 in cash each week
- In YNAB, create a category like “Cash On Hand”
- Use the Refill Up To target to top it off whenever it dips below $80
This helps you treat cash like any other planned spending and ensures it’s always funded intentionally.
Coaching Story: From Frustration to Flow
One client, Jason, was constantly frustrated because his spending plan didn’t reflect his real-life habits. He used cash to pay for school lunches, tips, and yard sale finds—but never tracked it.
As a result, his categories were off, balances were confusing, and he stopped trusting the numbers.
We helped Jason create a “Wallet” account in YNAB, taught him how to enter cash spending weekly, and showed him how to reconcile the balance with what was physically in his wallet every Sunday.
“Once I started treating cash like a debit card, everything clicked. My budget actually matches reality now.”
Avoid These Common Cash-Tracking Mistakes
❌ Not Recording ATM Withdrawals
If you just reduce your checking balance manually, your budget won’t reflect where that money went. Always record it as a transfer to the Cash account.
❌ Delaying Entries for Too Long
Memory fades fast. If you wait a week to enter cash spending, you’ll forget what it was for—and it will likely land in the wrong category (or go unassigned altogether).
❌ Not Reconciling Your Cash Balance
Just like your bank accounts, your wallet should be reconciled occasionally. If YNAB says you should have $26 in cash, and you only have $18, record the $8 as “Untracked Cash” and reset.
YNAB’s Five Questions Apply to Cash Too
Just because it’s physical doesn’t mean it’s outside your plan.
When you withdraw $100 cash, ask:
- What does this money need to do before I’m paid again?
- Am I spending what I thought I would?
Your cash should be just as accountable—and just as flexible—as your debit card.
Check out YNAB’s updated method if you need a refresher:
➡️ YNAB’s Five Questions
Final Thoughts: Don’t Let Cash Derail Your Plan
YNAB was built to help you manage real-life money—and sometimes that means physical bills, not just digital transactions.
With a simple process, a little consistency, and a “Cash” account in YNAB, you can track everything, stay accurate, and spend confidently.
Cash doesn’t have to be messy. It just needs a plan.
About the Author
Trent Ladle is the founder of Master Budget Coaching and a YNAB Certified Coach with degrees in Business Management and an MBA. With nearly 40 years of budgeting experience, he helps clients build values-based spending plans—guided by the belief that when you master your spending, you master your life.
Want Help Making Your Budget Match Real Life?
We’ll help you build a plan that includes everything—from tap-to-pay to tip jars.