![]() Go over to the left sidebar and add an account. Give your budget a name and choose the settings! I suggest that you set up your account on the desktop, and use the mobile app for on the go.Ĭlick on the top left corner to start a new budget. ![]() Log in here and create your free account! YNAB is free for the first 34 days, no credit card required.ĭownload the mobile app. How old your money should be depends on a lot of factors, but ultimately rule 4 wants you to focus on widening that gap between money in and money out. ![]() They even have a counter on the top of your budget that shows you the age of your money. They are all about aging your money to break the paycheck to paycheck cycle. You know that feeling 5 days after payday where you felt rich 4 days ago, and now you realize you only have $5 to your name before you get paid again? The way YNAB works, they want you to increase the amount of time between earning your money and spending it. This prevents you from feeling frustrated with your budget, and will hopefully keep you budgeting for the long run! Rule 4: Age Your Money YNAB easily allows you to cover overspending in one category with money from other category. ![]() If you overspend, you shouldn’t feel bad about it or feel like a failure. Rolling with the punches is all about understanding that your budget can and should change with your life. Your life is never normal and never goes as planned, so why should you expect your budget to be stagnant? Medical copays Rule 3: Roll with the Punches This way, you are less tempted to use a credit card for big purchases and less things become “emergencies” because you have planned for them. YNAB encourages its users to start saving monthly for all of the non-monthly expenses in their life. If you know what sinking funds are, they are similar concepts. True expenses are all of the non-monthly expenses that we KNOW will happen eventually, but often forget to budget for. You might be thinking “Okay that is great. In fact, when you start your first budget, they have a whole category of possible true expenses you might want to include in your budget. This makes sure that your money, and how you budget it, is aligned with your goals and what is most important to you. With the YNAB method, you KNOW where each of those dollars is going. You are never left with a large sum of money sitting in an account wondering what you are going to do with it. This gives your money purpose and meaning. Once you get paid, you allocate every single penny you have toward a category. Giving every dollar a job is just like a zero-based budget. If you have any experience with budgeting, or have been looking into budgeting methods, you may have heard about the concept of a zero-based budget. The founder of YNAB, Jesse, often mentions when talking about the four rules, that they all pretty much come back to this one, give every dollar a job. With YNAB, you not only are provided a budgeting software, but they also have 4 rules they have implemented in order to help you save more money and get out of debt. I mentioned that YNAB method, but what does that really mean? Now YNAB has over 21,000 users who save an average of $6,000 in their first year of budgeting with YNAB. Now YNAB offers not only their budgeting software, but they also have an entire method, YouTube channel, podcast and daily workshops to help you budget. Over time, that software grew from a small side hustle to a full grown business. Ultimately, Jesse decided to develop a software, and ended up selling it to friends and family. At the time, they knew that they wanted Julie to be a stay at home mom, so Jesse wanted a way to balance their finances to make that a reality. Jesse (the founder of YNAB) and his wife, Julie, were looking for a way to manage their money back in 2003. I think it’s important to have a bit of background on the company you are working with, especially when it comes to something like budgeting that is so personal and important to your life.
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