-
@My Only Sunshine: I found it really easy to get up and running. I signed up for the getting started class and ended up not being able to do it but they send you an email link so you can watch it on your own time. Take advantage of their 34 day trial and maybe there will be a sale soon!
-
@Espion: Ok, so, I get paid every two weeks as well (or, twice a month, 15th & 30th). Part of the goal is to "live on last months income". So, when I get paid on the 15th of August, I will enter that money for September. It becomes "Income for September".
September pay becomes octobers income, and so on and so forth.
Eventually, after you set up your buffer, you should never have to be in the negatives. From what I've read on YNAB it takes approx. 3 months to get your buffer.
-
@Espion: My suggestion would be to budget as much as you have money for. If you look at my list of categories you will see that a lot of our stuff falls towards the end of the month. What I do is take the money I have at the beginning of the month as far as it can go and then budget the rest with the next paycheck. This is the "correct" way in the YNAB method.
For example I get paid on the 1st = $1,400
I budget
Rent = $800
Groceries = $200
Gas = $50
Cable/Internet = $150
Electric = $100
Savings = $100This is an overly simplistic example but the basic jist. It is a little nerve racking for the first couple of months because it is a switch from the way you have probably been doing it. I like to over estimate things like Groceries and Gas so that we don't feel trapped and have a little extra money to move around as necessary.
-
@mrswin: That is a great point. I really like the way you explained it!
-
@.twist.: Ok, I think it will take a few months to get to that point. I think I just need to get paid! Ha.
-
For anybody following along I thought I would answer my own question from yesterday. I started the free trial and I think it's pretty intuitive, but it is different than the way I think most people think of "budgeting." It's designed for you to only budget the money you actually have, not the money you anticipate getting paid later in the month.Once we conceptually wrapped our brains around that part we were on board.
My favorite part of the whole thing is being able to divide up our savings goals. Before creating a budget we just had a certain amount of money that's our "emergency fund" and we knew things like high doctors bills or a new roof for the house would come out of that. I like the idea of having some money that never gets touched unless it's really an emergency but then also ear marking other savings specifically for, let's say, a new roof. That way when we do need a new roof I'm not stressed about depleting our emergency fund because I know we have enough.
-
@My Only Sunshine: So glad to hear you're finding it useful and, at least for now, peaking your interest!
Keep us updated!
-
I missed this thread somehow, but I've been using YNAB for a few months now & I love it! I go over every month on groceries though. I really need to get that under control.
@swurlygurl: DO IT! It's worth the money, I promise. We are on a really tight budget, but I paid full price. It was a splurge, but totally worth it for our financial peace.
-
@photojane: It really does bring financial peace. The only things I worry about now are that I don't think we are saving enough!
I also just read recently on the YNAB blog that a combination of Dave Ramsey & YNAB is the perfect balance for budget success.
I also read a little bit of a blogger named "Mr. Money Mustahce"? He is 30 and retired? I kinda skimmed over his blog and story and ... man, he is freaking strict.
-
@.twist.: I love mr. Money mustache!! Too extreme for me, but it inspires me at the same time.
-
@Mrs. High Heels: I was reading his blog post on how debt is a REAL EMERGENCY, I was all like "yea, and I'm budgeting to pay it down" and he was all like "Don't spend any extra money, pay it down FASTER" I got scared and ran away.
-
@.twist.: I find him to be a little bit much, I get that it worked for him and he is 30 and retired but some times I find the stuff he suggests to not be reasonable....
-
@mrswin: I agree. I feel like his methods are for people who are drowning in debt, or close to bankruptcy. In a dire situation like that, drastic measures DO need to be taken. For the average budgeter? MEH. There needs to be a little room for wiggle or else you have people fall off the bandwagon.
-
@.twist.: @mrswin: I'm with you guys - too extreme and unrealistic - but some of the blog posts are entertaining! This one gave me a good laugh - http://www.mrmoneymustache.com/2014/07/17/is-mr-money-mustache-ruining-your-marriage/
-
@Mrs. High Heels: I agree that post was entertaining! The inflatable couch was killing me
-
@.twist.: @Mrs. High Heels: I read his blog from time to time. Yes, he is "retired" but he's in his later 30s and he really advocates for a very, very pared down life. That works for him & his family, but not really how I want to live. At this point, I bet his income is pretty high from his fairly successful blog & his carpentry work.
I think he's a good blogger though. He has a clear POV and is entertaining. But like any advice that people give you, you have to make it work for you & your family.
-
@Mrs. High Heels: That was so hilarious!!! IF she was for real, she is a very good writer. I was in tears of laughter!
@sunny: I agree. He's definitely an entertaining read, but I will stick with, the very flexible-to-all-budgeter-styles, YNAB.
-
@sunny: @.twist.: I agree - I'm not a fan of the "all-or-nothing" approach with anything in life!
-
Any advice from YNAB users on how to make that mental switch from forecasting for the month to budgeting individual pay checks? I am having a hard time keeping up with using YNAB and I don't think I'm actually using it properly. I keep an excel doc to track what bills are due what week to make sure I spread them out fairly over the month, and I think maybe that's keeping me from truly budgeting each week. Help??!!
-
@sunshineandsushi: No advice on how to make the switch but it can be terrifying!
If you look at my list of accounts on the previous page you will see that I put the amount & due date in the category name for all my fixed expenses and keep them in date order. As I get a paycheck I work my way down the list budgeting for things. I wait to budget things like savings or other rainy day funds until near the end of the month so that I am comfortable that the necessities are looked after.I also make it a point to stay on top of things by reconciling every couple of days, just 5-10 minutes in the evening
-
@sunshineandsushi: It took me a couple months to really grasp the whole process of forecasting vs. budgeting the money I had.
There are two way (maybe more if I'm missing something) to accomplish this first annoying step.
1. This month, account for all your fixed bills. Make sure anything that NEEDS to be paid gets paid. Any extras or frivolous expenses need to be kinda cut out (for now!). Take ANY extra money and start putting it in your "buffer" category. When you have 1 full months pay in the buffer, make a transaction that it is "available income for September" (for example). It may take a few months to do this step.
2. Since I had been budgeting for a while before YNAB, I already had a cushion of income that we lived off of. There was just no rhyme or reason to our spending. I just budgeted for two months (August AND September) and then when September came around and I got paid, I put that money towards "income for October".
I really hope that didn't confuse you. Sometimes I am not great about explaining these things, so if you need clarification, let me know.
-
So, dipping my toe in here...
I never thought I would need anything more than an excel spreadsheet, but I am taking a more active role in our finances in the sense that I have a very aggressive savings goal I would like to achieve and I really need to "grab the bull by the horns" if I want to get there.
My main issue is my random spending, seeing something I don't really need, but purchasing it anyway because it is on sale. I know well enough that when I do need whatever item that is, I can for sure find something else at a another time, but I can never get over that feeling of I will never find anything like this again for this price.
So, I feel like if I can get over that feeling and see my bank account increase, then I will have the motivation I need to continue, because I tend to fall off the wagon when I see I've made progress...hate that about myself.
As far as my budgeting activites go, we've long kept an plan vs. actual approach and it works for us. We already have a buffer, that is not the problem. The problem is I can not make that buffer larger. I am hoping YNAB will help me do this, but I am not sure that's what the software is really designed to do.
I will not pay full price for YNAB, so I am willing to wait for a sale....$15 yes, but $60, no.
Haaaaaalp!
-
@sunshineandsushi: I found this article helpful - http://www.youneedabudget.com/support/article/forecast-in-ynab
My husband and I are aggressively paying off debt right now so we're not focusing on building a one month buffer. To stay on top of bills that are due after we get paid again, I put the due date and amount owed in a note on each category. I know some people put them in the actual name of the category too.
-
@looch: That sounds a lot like us - we're just budgeting so we can get better control of our extra spending to increase our savings. DH would kick me out of the house if I told him that the way to do that was to buy a $60 program... haha!
-
@mrswin: @looch: @My Only Sunshine: Thanks all! I definitely like the tip about putting the due date in the category name and am planning to do that.
@My Only Sunshine: I have read that article and I think it boils down to a mental shift for me. For whatever reason, I'm not following the budget laid out in YNAB, but still reverting back to my bank account balance. OR, an unexpected expense pops up that throws me into the negative and then I give up on balancing out.
I think the other issue with me staying on top of YNAB is that I tend to pay the bills on payday before I update the budget, so it really does feel like I'm just tracking amounts versus actually budgeting. I had to do it this way before because DH's paychecks were commission-based and always differed. He recently moved into a salaried role so now we actually know for sure what each paycheck will be for him.
And of course, every time I try to spend some time getting updated in YNAB, I end up depressed about not having more money so then I don't want to finish it.
It's a vicious cycle!
-
@swurlygurl: I know! He'd be like, for $60 a month, I can build you an excel spreadsheet with macros. I am not sure he'd even be on board with $15, considering mint is free.
-
@looch: it's not $60/month... it's $60 one time to buy the software!
-
@.twist.: we are doing Dave Ramsey's baby steps and using YNAB as a tool. It was going great, but then we got a ton of unexpected medical bills, so our dept payoff has slowed down. I want to look at Mr Money Mustache, but after what y'all have said - I'm nervous! I'm not ready to have no spending money!
-
@photojane: Oh I didn't realize! That's a step in the right direction!
-
@looch: I do this a lot, especially at Target. Ynab is awesome for me because in the past I would drop $100 on "stuff" but it was on sale! Now, I can check my "household goods" or "home improvements" category and see how much I have budgeted. I still feel like I'm getting the "good deals", but I'm more selective and only spend a tiny fraction of what I did before.
-
@TemperanceBrennan: Target isn't my problem...it's online browsing/shopping.
-
@looch: Definitely not $60/mth! Its a one time fee and if they do a major new release (i.e. YNAB 4 to YNAB 5) I have heard that the upgrade fee is only $20 or so
-
@sunshineandsushi: You have to take the plunge and trust that your category balances are there and that the bank balance is irrelevant! And remember that you can make adjustments every day if necessary, just because you originally budgeted $100 for groceries doesn't mean that you can't adjust if it ends up needing to be more or less.
-
@sunshineandsushi: Don't get discouraged! It's hard getting started. (I mean, it still sometimes is frustrating and I've been budgeting for 8 years and using YNAB since February 2014).
@photojane: I think Dave Ramsey & YNAB are a great pairing. MMM is, in my opinion, targeting a certain demographic and it is NOT people who enjoy the little luxuries of life. I find him to be way too strict and I would not survive his methods long. I have thought about maybe doing budgeting his way for 1 month, seeing how much I can save, and then go back to normal for a couple months. I think in one month of REALLY scrimping, we could pay down a big chunk of debt. Then, have a couple normal months, and repeat. I might try it like that.
-
@TemperanceBrennan: "I'm more selective and only spend a tiny fraction of what I did before."
THIS x100!!! I still feel like I'm splurging on something, even though it's "within" a category. There's no guilt because I know other money is going to do it's job elsewhere and I don't have to worry about it!
-
@Mrs. High Heels: Quick question, since this is the first month I'm doing this. Do I have to fill anything in on subsequent months? If I do, will I mess up the rollover? Or will the budgeted amount PLUS the rollover amount...rollover?
-
@Espion: So, if I understand you correctly, you don't NEED to fill in the subsequent months yet. Not until you have your buffer. So, fill in the "budgeted" amount with the money in your account. Save for your buffer, and when you have 1 full months worth of buffer money, take it out and enter it as "income for [insert subsequent month here]".
Until then, continue to use YNAB as a transaction tracking system.
-
@Espion: no, just budget one month at a time. Don't budget for subsequent months until the end of this month (unless you have enough in your available balance to budget 2-3 months ahead!). If you budget for subsequent months the budgeted amount + rollover will rollover.
-
@Mrs. High Heels: Can you budget multiple months ahead? I tried doing that once and I couldn't get "income for x month" in my drop down?
ETA: I can get it for the immediate following month, but none after that.
-
@.twist.: @Mrs. High Heels: Thank you ladies! Okay, so what I'll see on September 1, is (hopefully) a "available balance" at the top, that is basically the sum total of the rollovers, plus if I happen to get paid. Then if I have enough leftover, I plug in my numbers based on what I have available to budget, (i.e. put in my mortgage, utilities, first) until I have a full buffer. Or will I see the available balance PLUS whatever rolls over will be in the columns for the next month? I think I'm starting to get it...
If you look at my list of accounts on the previous page you will see that I put the amount & due date in the category name for all my fixed expenses and keep them in date order. As I get a paycheck I work my way down the list budgeting for things. I wait to budget things like savings or other rainy day funds until near the end of the month so that I am comfortable that the necessities are looked after.
- Google Plus
- Stumbleupon
- Twitter
- Facebook
- Pinterest
- Favorite3
319 comments