"You Need A Budget" - a message that Jesse Mecham wanted to make so clear that he made it the name of his business. His app has changed lives, including ours!

Before

We weren't high income earners when we started our budget. We were fairly good at saving. But all the money was in one bucket, and it was difficult to know how much spending would affect us. We pretty much avoided spending of any kind, and Victoria was always anxious about money. I suggested YNAB - I had used it and liked it in the past but had fallen off the bandwagon for a while.

What is YNAB?

YNAB is a budget app that avoids the common forecasting pitfalls of other budget apps. It's an implementation of the envelope method. Like other budgets, it encourages you to stop looking at your entire bank balance, and start dividing that balance into smaller numbers with specific purposes. YNAB is a great app, but the real secret sauce is the method behind the app.

The YNAB Method

The foundation of YNAB's method is the rule "give every dollar a job". It means every single dollar, and very specific jobs. The method avoids generic jobs like "savings", because that's not specific enough to help you or motivate you. What are you saving for? A house? A holiday? An emergency? YNAB encourages you to answer those questions, so your existing money can work harder for your top priorities.

On top of that foundation, the YNAB method asks you 5 questions:

1. What does this money need to do before I'm paid again?
   This question addresses your immediate reality. How much money do you have, and what expenses are right around the corner?
2. What larger, less frequent spending do I need to prepare for?
   This question addresses stability. Look ahead 12 months, and convert all of your non-monthly expenses into monthly savings goals.
3. What can I set aside for next month's spending?
   This question is aiming for resilience. By encouraging you to set aside money for next month's budget, you can gradually feel more proactive and break the paycheck-to-paycheck cycle.
4. What goals, large or small, do I want to prioritise?
   This question is all about the creation of the life you want to live. Here, you're encouraged to think beyond the boring stuff and set aside money to really live.
5. What changes do I need to make, if any?
   This question encourages flexibility. Unlike other budgeting systems, with YNAB you haven't failed your budget when you overspend in a category. Your priorities changed, so you changed your spending to match! The method and the software both allow you to change tack and adjust your goals mid-month.

Now

Having a budget eased that financial anxiety by making priorities and costs clearer. We're not just setting aside money, we're setting goals and achieving them! YNAB helped us save for a house, and importantly it also helps us to spend a but on the little things that make us happy, like dates. We're nerdy about our budget - we have categories for loads of things, like vet vs vet dental, or even a "lost my job insurance fund".

I'm a YNAB lifer - this has become a core part of our lifestyle. I strongly believe you should at least give it a go for a while! I'd be happy to coach you through the setup. Reach out if you have any questions.

Referral link - if you use it, we'll both get one month free.