![]() YNAB’s four rules helped me become more proactive about my spending because I checked the app before buying anything. ![]() SAMPLE: YNAB budget home screen on a desktop When I overspent on groceries for the month, I had to move money from another one of my budget categories to make up for it - which is the third rule.ĭespite several unexpected expenses during both months of my experiment, I managed to save an extra $600 using YNAB’s method. YNAB’s method gave me a reality check a few times. Using YNAB’s smartphone app to log transactions is so quick and easy - I usually got it done before even leaving the store. However, I chose to keep my accounts unlinked and manually entered transactions instead. Like Mint and Personal Capital, YNAB connects to your bank accounts to monitor your transactions. Age your money: Stuck living paycheck to paycheck? By consistently spending less than you earn, you’ll work toward using last month’s pay on this month’s expenses.Roll with the punches: Things can and will go wrong! Move money around to cover categories where you overspend.Embrace your true expenses: Set money aside every month for non-monthly expenses (property taxes, insurance premiums, holiday gifts, etc.) so that you’re ready when the bills come in.Give every dollar a job: When you receive a paycheck, assign it to your expense categories before you spend it.YNAB’s budgeting method, which is like a digital version of the envelope system, really helped me prioritize my spending and make good decisions. What’s so special about YNAB? The four rules. How to Apply the YNAB Method Using Google’s Free Budgeting Spreadsheet Years later, I frequently check both Mint and Personal Capital to make sure that I’m spending less than I earn. While in my mid-20s, I diligently tracked my income and expenses during the two years and two months that I spent aggressively paying off my mortgage. It does not represent financial advice.I spent two full months testing out YNAB (You Need a Budget), a subscription-based budgeting tool, and it completely changed the way I manage my finances.īudgeting has always been one of my strengths. The content within this series is aimed to provide general guidance and information only. Money on your Mind is a new series which aims to help you build your financial confidence. You’ll find insights, tips and suggestion to help you feel more knowledgeable about managing your money, as well as jargon free answers to some basic financial questions. It takes roughly 15 to 20 minutes to work through, and is designed to help you assess your situation, analyse your income and debts and make a budget. The Money Advice and Budgeting Service’s (MABS) budgeting tool will allow you to set out your income and expenditure and make a budget. You can also use their spending calculator to see if you can cut back on any day-to-day expenses. The Competition and Consumer Protection Council’s online budgeting planner allows you to work out what you are spending your money on and compare this with your income. You can work out a plan that suits you (or your household) and so you can keep control of your spending effectively. They don’t see or keep any of the information you input into the budget planner, and you can email yourself your results. It is a manual process, but if you get into a routine of updating it, it is one of the most simple ways to manage your budget. We’ve constructed a simple monthly budget planner which you can download here. One can never underestimate the power of a good spreadsheet, and there are many you can find online. This app is very simple and free to use – and if you want to use a different money management tool what your online banking platform offers, it allows you to categorise spending into different categories and set targets and budgets. It is subscription-based, with a free 34-day trial and then annual fee after that. The app allows you to even out the expenses which crop up over the year - including monthly bills and irregular bills (such as birthday’s, insurance premiums etc.). If the app doesn’t connect with your bank, you can manually input your data. YNAB is possibly one of the world’s most popular budgeting apps – and it focuses on your total spending and income that has accrued in the past as well as setting targets for future spending.
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