Gain total control of your money with YNAB, You Need A Budget app.
This app was created by Jesse and his wife Julie in order to gain control of their paycheck and stop living paycheck to paycheck.
That is what attracted me to this app. I was tired of having money control me, then being broke and having to wait for my next paycheck to have more. Living paycheck to paycheck sucks, as we all know. We have all been there at one point or another.
How Does It Work?
The main premise behind the app is to decide what you want to do with your money when your paycheck comes in, before you spend it. You don’t enter money from the future, only what you have right now. Then you plan what you need your money to do for you until the next paycheck comes in.
So if you are paid today you would budget out what you need for the next two weeks (or one week) to make sure all your bills are paid, food is bought and whatever else needs to be funded, until you have more.
They teach you to live in the now.
You can link your bank accounts and credit cards, so it automatically updates what money you have available and what credit you have available. As you spend It automatically deducts the amounts.
They also have an option to manually enter your money and budget how much you will need for the categories. I choose to do it this way for a simple reason: Big box stores
I used to use Mint but it would all be lumped under one store on the transaction no matter what you bought. If you go to Walmart or Target and buy some clothes, some bath stuff AND some food it is all under a shopping category. But some of it is food, and I want it in the food category. You can remove or add categories into each section to make it more personalized to your life.
I like how I can just enter my receipts for the exact amount under the correct category. Of course, when I check out I do it sorted by food, then everything else so I can enter each receipts total separately.
Once you gain control of your money, instead of letting it control you, you can pay off debt, start saving and ONLY spend money that is at least 30 days old. You will never feel or be broke again!
Four Simple Rules For Successful Budgeting
Rule One – Give every dollar a job
When you check comes in sit down prioritize how you will use it. Allocate every penny even savings and investing. This helps to visualize what your money is going to do for you and will help to alleviate careless spending based on your mood.
There are categories for Dining Out, Fitness, Education, Fun Money and more. You can even create your own categories. So if you plan on $40.00 for 2 weeks to fun you cannot go above that amount because there is no more left.
Rule Two – Embrace Your True Expenses
Have a hard time paying big bills when they come in? Enter money into a category every paycheck for that expense, such as insurance or Christmas. You break the total amount you need down into manageable chunks for every paycheck and never have to worry when the time comes to pay or shop for presents.
Rule Three – Roll With The Punches
If you do find that you have overspent in one category just move money out of another category to cover the cost. Remember, you control your money.
Rule Four – Age Your Money
As time goes on and you are successfully planning and sticking to your budget your goal is to spend the money your earned last month. You are no longer paycheck to paycheck. Always spend the money that is 30 days old and you never have to worry again about being broke until your next paycheck.
Reality Check
Most of the information you see on budgeting say with an income of $50,000. Usually combined income. But what about the rest of us that make less than that per year with no combining, only one income.
What I have found is at first it is hard to get control of your money. When you don’t have much to work with it goes fast. Plus you are used living in a certain way, which can pertain to higher income people also.
So how do you do it?
I found it extremely hard in the beginning because my income was only $32,000/year. My debt was low which was a plus. Only about $1,200 in credit card debt, no car, no mortgage (living with my daughter). But I like to eat and I have 4 dogs and help with feeding my daughter’s 4 cats.
Once I get paid I got to store for food, but see this or that and put that in the cart too. Plan on only spending $100 and walk out with $150 or more.
That is what I had the hardest time with. I started by writing out each item on my food list, along with previous prices that I paid to itemized it to the penny.
Of course, taking into account sales or prices rising it was far easier to stick to the list if I had every single item laid. out.
I also work at home and only go into the building on Friday, so I started bringing my lunch instead of buying it.
You really have to work with yourself and your expenses to see where you can cut corners to get control. Don’t give up! If I can do this so can you.
What Else Do You Get?
Blog, Forums, Podcasts, Videos, Online Workshops, YNAB Book. These are just a few of the other programs you get when you join to help make you successful in your goals.
Online Workshops – You can access these on the website or the app. Some topics include:
- Learn The Four Rules
- Set Up Your Budget
- Master Credit Cards With Your Budget
- And many more.
Blog – You will find articles related on how to use the app, how to develop good habits, change your thinking and many more. I would try to access at least one article a day to keep myself motivated.
Forum – This is fairly new but it is a great tool to ask questions and get answers. It covers a lot of topics such as budgeting strategies, importing issues and so much more.
How Much Does YNAB Cost?
YNAB charges only $6.99 a month. Of course, there are others out that that are free, such as, Mint. But since YNAB operates uniquely, where you only budget what you have and also teach you to live on last months money it is a game changer for many. Budgeting is one thing, but teaching you a whole new way of living with your money and not being broke keeps them leaps and bounds above the other budgeting tools out there.
You can sign up here and you get 34 days free before your subscription starts. NO credit card needed to sign up. They picked 34 days to give you time for two paychecks, (most jobs are biweekly now), and a few days of spending that second paycheck to see if you want to continue.
Conclusion
I have tried a few budgeting programs and I like the interface of this one the best. I also was very motivated by the 4 rules, most specifically #4 Age Your Money. That one was truly a game changer for me. I love money. But I also like to spend money. But what I have always wanted was to HAVE money. To be able to play with it and move it around and invest it so it makes more money. By conquering my bad habits I have successfully been able to do this with the use of this app.
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