YNAB Will Work For You!

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!

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