YNAB Will Work For You!

Personal Finance Software

ynab financial freedomWith all the budgeting software packages available, why do you hear so much buzz about the YNAB (You Need A Budget) budgeting software? There are several reasons for this. YNAB is one of the new kids on the budgeting block. It hasn’t been around like some of the others. However, I believe most of the buzz is the fact that unlike other budgeting software, YNAB is a “living” budget instead of a “static” budget. Most budgets will help you know where your money has gone each month. Some actually help you plan ahead to meet up-coming expenses but YNAB is the only one I know that will actually help you save to where you are living on last month’s income. In my opinion, that is more than just budgeting. That is reversing the “living paycheck to paycheck” cycle. That is financial planning!

The YNAB Secret

The secret of YNAB lies in the four rules. These are four methods that will start you off on a good foot and keep you there.

  • Rule 1 – Give every dollar a job. – This is pretty basic but you would be surprised to find that many people never thought about giving each dollar they earn a job. Most just stick their hard-earned money in the bank and hope for the best. However, just having your funds in the bank with no real plan for them can give a false sense of security, which can lead to frivolous spending. Giving every dollar a job provides good stewardship and teaches discipline.
  • Rule 2 – Save for a rainy day. – Rule 2 has you plan ahead for any expenses that occur only once in a while. It also helps plan for those unexpected expenses. Let’s face it, they never come at a convenient time else we would not call them unexpected.
  • Rule 3 – Roll with the punches. – This rule can be hard to follow but if followed, it does keep you within the reality of your spending. When you have an unexpected expense that requires more than what you have saved up, YNAB will take funds from another category but will re-budget the remaining funds or take from the next month’s budget to compensate for the loss. This is reality and you have to face the music.
  • Rule 4 – Live on last’s month’s income. – This is the rule that takes some time to accomplish; usually a time period between 6 months to 2 years. When you do, you have achieved a budget that works for you and takes the stress out of living.

Want to get on a budget that will help you get out of debt. Try YNAB! It will work for you!

YNAB Makes Mobile Apps Free

Personal Finance Software

YNABYNAB (You Need A Budget) software has made some great changes that will help customers enjoy this software even more. As far as budgeting software goes, YNAB is about the best option out there for anyone serious about budgeting and succeeding in their finances. However, on top of all the benefits from this software, YNAB has decided to make their mobile apps free for their customers.

This decision was based on several factors. For one, many customers were on the fence, wondering if the extra $5 was really worth it for them. Many felt nickeled and dimed to death. Others were unable to really experience the “full” capabilities of YNAB since they were using the trial version which did not support the mobile apps without paying first. This just adds one more thing to think about if you are a customer; whether the YNAB package is worth the cost. As a company, the brains behind the operation increasing felt that it wasn’t making much sense to charge for the mobile apps, since the desktop is required for them to have any functionality.

Of course, there are those who would rather pay for a service as opposed to getting it for free and the service not be kept up-to-date. This makes sense, too, but the company addresses this concern in their explanation of advantages.

Benefits of Free Mobile Apps

As a result of much discussion and feedback, the company has decided to make the mobile apps free for their customers. There are three advantages that make good sense as to why this move is a good idea.

  1. If you are worried about development slowing on the mobile side because YNAB is making them free, no worries. The improved experience for trialers of YNAB will improve conversion rates which will translate into more revenue than was earned when they were charging for the mobile apps.  (Mobile app revenue, as a percentage of total YNAB revenue, is extremely small, so this idea is feasible.)
  2. If you are one who has to watch their spending, buying the package software just means one purchase; no extra charges.
  3. YNAB won’t have to exert the extra overhead to refund the $4.99 for those who purchased the mobile apps when they didn’t need to because the desktop app was required.

I think this decision is a good step in YNAB’s future since many customers really use the apps and the cloud sync to keep up with their budgeting while on the go. Adding the free app service will only enhance and persuade people to try the software and be impressed.


The Skinny On YNAB

Personal Finance Software

YNABThere are many software programs on budgeting and they all have their good points and their drawbacks. However, the more I research budget software, the more I have encountered people who have really endorsed YNAB (You Need A Budget). Of course, everyone has their particular reasons for using this product but there are several common threads of praise. With that being said, here are the main points of the YNAB software that seem to be the overwhelming positive response from customers using this product.

YNAB Methodology

Perhaps the most positive responses surround the YNAB methodology of budgeting. The program uses a virtual envelope system to account for cash flow spending and saving. Basically, after you set up all the particulars, the system does most of the work for you. One customer reported that they just don’t have to worry about expenses because the software accomplishes this for every month.

I think this is very important and probably something that many people have never learned from their up-bringing. In fact, I believe that this is a real problem in our country that has been partly responsible for the financial problems of 2008. If people had experience in keeping within a budget, perhaps that could have helped reduce the many foreclosures that occurred in 2008. I hope our school system is starting to implement budgeting-type education in their curriculums. Although this is just my opinion, I believe this should be a necessary requirement for graduation.

Well enough of the soap-box. After reviewing several budget software packages, I believe that the envelope system is a great way to keep track of expenses and income.

YNAB Saving

Another common positive response has to do with the way YNAB helps you save for that “rainy day.” We all have been there. It’s all those unexpected expenses that usually come at the most inconvenient times. I love the way YNAB does this. It simply “rolls over” any unspent amounts from each category to the next month. That really counts when these rainy day expenses decide to pop up.

YNAB Counter-Balance Methods

Another feature in YNAB that may be quite popular is called the “rolling with the punches” approach. Basically, if you overspend in one of the categories, that overspent amount is deducted from the new month’s available balance. While most people would not look forward to not starting the next month with the same budgeted amounts in each column, the fact is this software helps you realize the consequences of over-spending and develop ways to curb that habit.

Overall, the YNAB budgeting software is very well accepted and admired as a quality budgeting product.

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