![]() ![]() Before YNAB, every year without fail around April time I’d have to scramble some cash together to pay my annual car insurance bill. If you only have £100 available right now for rent, pretending you have more isn’t going to change that. The key is to only allocate the money you have right now. Make sure every penny of your bank account has a ‘job’, be it rent, groceries, heroin, electricity, whatever you need. It encourages you to manually enter each and every transaction you make doing so makes spending a conscious decision, and keeps you attuned to your budgeting decisions. The over-arching theme of YNAB is to have a stronger link with your money. Let the rules guide your budget, and it works like a charm. ![]() Many people fail with this because they try to apply their own budget methods to the software, which it’s simply not designed for. ![]() IS YNAB BUDGETING MONTHLY OR UNTIL NEXT PAYDAY SOFTWAREThe key to YNAB is to let the software dictate how you use it. Something had to give had the situation arose, I doubt I’d have been able to scrape together £200 to cover an emergency without asking family for help. I was still living in my student overdraft, renting an expensive two-bed flat in Edinburgh alone, living payday-to-payday and not making much of a dent in my debt. I started seriously looking for personal finance help towards the end of 2014. The software complements the rules, and for the amount of effort it would take to recreate by hand, you may as well just make the purchase. The rules and methodology are the key to achieving your goals, and they give those away for free. Realistically, you don’t need the software to budget successfully with the method. Since I started using YNAB in January 2015, by word-of-mouth recommendations I have convinced at least six people to purchase and use the software. Despite this, and their dollar-centric descriptions, I quickly became an avid subscriber to the YNAB philosophy of the Four Rules, following them religiously via the software sold then as YNAB4. The software name can be a little controversial when I first read it, the tone to me sounded like there should be an ‘idiot’ suffix. I still use YNAB4 (also called YNAB Classic), which I’m writing about here, and I will continue to do so until subscription-YNAB reaches at least feature parity with YNAB4. NOTE: This article was written on May 3rd, four months after YNAB released a subscription-based model. If you met me in person sometime in the last year or so, engaged in conversation with me about personal finance, or even just made an off-hand comment about budgeting or not having enough money, chances are I’ll have mentioned (okay, let’s be honest, forced down your throat) the benefits of the budgeting software YNAB - You Need A Budget. ![]()
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