What Is The Secret Of YNAB?

There is a lot of buzz about the success of those who choose to use YNAB as their budgeting software. Reviewers and customers, alike, are amazed at how this software application really helps people get on track and stay on track concerning their personal finances. Not only do customers maintain a budget, but YNAB actually does all this while users report that they spend less time managing their money.

All the bells and whistles that YNAB features really makes it stand out from the rest but the real genius behind the method is what makes one want to take a closer look at the program. So what is the difference? YNAB uses a “buffer” fund. This fund is made up of savings that is equal to a month’s worth of personal expenses.

Buffer Fund

The concept is truly genius. YNAB gets people to focus on employing each dollar to do what it can do best instead of thinking “do I have enough?” This mentality causes people to change their way of thinking. This concept has been such a success that the software company reports that after using YNAB for one month, the median increase in net worth is $200. YNAB reports that after 9 months that number increases to $3,300. That is fascinating! It brings up the old idea that maybe there is something to the YNAB belief that the old school approach of living off estimated income is what is holding people back from realizing their financial goals. Also, if you don’t have savings to equal one month’s income, YNAB will help you get there. It does this through a four-step process.

  • Rule One: Give Every Dollar a Job (Change your mindset). When you do this, your money is being allotted to every category possible and you are in charge of the categories.
  • Rule Two: Save for a Rainy Day (Plan for the unexpected). Great concept and one in which many people fall short.
  • Rule Three: Roll with the Punches (Reality check). Great way to learn not to over-spend.
  • Rule Four: Live on Last Month’s Income (Final state). When you reach this level, you can truly say “no worries!”

It is nice to know that YNAB backs their claims with a real system. But how do you know if it really works? The best way is to check it out. There are many reviews on this software, some by customers and some by professional reviewers. The bottom line is to check it out for yourself. If you need a budget, this software may be just the ticket for you.


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