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Ask Jesse: Talk Slower, Pay Down Debt Faster

You Need A Budget (YNAB)

Release Date: 03/27/2023

Paying Off Debt the Sustainable Way show art Paying Off Debt the Sustainable Way

You Need A Budget (YNAB)

Jesse is taking a break for the summer, so Ben and Ernie (from the Budget Nerds podcast) are stepping in to guest host.  Today, they talk about paying off debt... sustainably! So many personal finance resources urge people to pay off debt as soon as they can, and white knuckle their way toward financial freedom. While this can work for short periods of time, for many people paying off debt is a marathon, not a sprint, and white-knuckling has many pitfalls.   For one, when you're throwing every dollar and focusing all of your energy on paying off debt, it's easy to ignore Rule Two --...

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Rule Four Reviewed show art Rule Four Reviewed

You Need A Budget (YNAB)

Beef is pretty good aged, but you know what's even better? Aging your money! That's Rule Four -- aging your money. Basically, increase the amount of time between when you earn the money and when you spend it. By following Rule One through Three, you can accumulate cash in your categories and pre-fund future expenses, thereby increasing your options.   When you have a lot of cash available, you have options for handling unexpected expenses, taking advantages of opportunities (which require money/investment), or simply changing your strategy. It's easy to re-assign dollars that are already...

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Rule Three Reviewed show art Rule Three Reviewed

You Need A Budget (YNAB)

Be like the reed... blowing in the wind. It's not a haiku, Jesse is talking about Rule Three -- rolling with the punches. Life happens, and unexpected things are going to pop up that could break the budget. When you roll with the punches however, you check the budget, find the money for the unexpected expense in another category, and fund the expense by moving money from that category.   The key here is that you check the budget and find the money first! You don't simply spend the money and try to figure it out later.   Facebook: Instagram: Twitter: Tik Tok:     Got a...

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Rule Two Reviewed show art Rule Two Reviewed

You Need A Budget (YNAB)

It's back to basics time! Rule Two in the YNAB method is "embrace your future expenses." In short, think about the things you will have to buy or pay for in the future, and act on them NOW. Car going to need new tires in six months? Don't wait till they need replacing to budget for them, start budgeting now! Save a portion of the replacement cost each month until you've reached the replacement cost for those tires.   Really Rule Two is Rule One again, give every dollar a job. You're giving your dollars jobs today, to pay for expenses tomorrow.     Got a question for Jesse? Send...

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Rule One Reviewed show art Rule One Reviewed

You Need A Budget (YNAB)

Jesse is going back to basics and reviewing the Four Rules, which are the foundation of YNAB. The first rule: give every dollar a job. What does that mean exactly? YNAB wants you to live and spend according to your values and priorities -- the things that are most important to you. In order to do that, you first have to start giving your dollars jobs that are in line with your priorities. That's the heart of Rule One.   YNAB wants to hear from you! YNAB is running a contest between now and May 11th. The contest is simple: share your mother's method to living well, in the style of the YNAB...

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A Mother's Method for Living Well (Contest Announcement!) show art A Mother's Method for Living Well (Contest Announcement!)

You Need A Budget (YNAB)

At a recent YNAB all-hands meeting, Sarah gave a personal presentation about her "Mama's Method," rules her mother gave her for living well. Sarah told them in YNAB Four Rules style: Give every moment a job Embrace yourself and others Roll with it Age is just a number (play a lot!)   In honor of Sarah's presentation, and upcoming Mother's Day, YNAB wants to hear from you! YNAB is running a contest between now and May 11th. The contest is simple: share your mother's method to living well, in the style of the YNAB Four Rules if you can. One person will be chosen at random, and the winner...

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What's In Your Financial Shovel of Dirt? show art What's In Your Financial Shovel of Dirt?

You Need A Budget (YNAB)

Jesse shares a story about growing sweet potatoes and shoveling dirt... lots and lots of dirt. There's a metaphor here about budgeting too. It's work, and sometimes takes a long time to pay off. But steady, sustainable work day after day yields big results!   Got a question for Jesse? Send him an email:   Sign up for a free 34-day trial of YNAB at

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Giving Future You A Bit More Negotiation Ammo show art Giving Future You A Bit More Negotiation Ammo

You Need A Budget (YNAB)

Jesse shares a trick for improving your Rule Two planning (Embrace Your True Expenses), and better prepare for the next unexpected expense.   Jesse suggests pulling your last six months of bank statements, and quickly scanning them for large expenditures. Look at the number of digits, and flag the transactions that have a large number of digits (to you). This should only take a few minutes. Note the payee. This exercise is the first place to look when planning for future unexpected expenses. Did you get in a fender bender and end up with a $1,000 bill from the body shop? Did you hire a...

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Paid In Full, But Always in Debt show art Paid In Full, But Always in Debt

You Need A Budget (YNAB)

Jesse continues his rant about exploration of credit card use, observing that "paid in full" users are, technically, always in debt. Paid in full users are people who have the cash at any moment to pay off their credit card balance in full, but choose to pay off the balance before the next billing cycle. While they do pay off the balance regularly (monthly, or weekly, maybe even daily), and thus never incur interest, they are in debt until the moment they pay off the balance. And of course, after they have paid off the balance, they are again in debt as soon as they charge the next...

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Jesse Chats with a Guy Who Has Never Used a Credit Card show art Jesse Chats with a Guy Who Has Never Used a Credit Card

You Need A Budget (YNAB)

Jesse talks with a man who has never used a credit card -- YNAB's own Ben Barlowe, who you may also recognize from the Budget Nerds podcast. Ben is 34 years old, has four children, a house (purchase with a mortgage), and a busy life! Believe it or not, he has been able to navigate life without ever having used a credit card.   Ben discusses the reasoning behind his personal decision to not use credit cards, how he obtained a mortgage with no credit score, and how he manages day to day expenses such as renting cars without a credit card.   Credit cards are ubiquitous these days, but...

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More Episodes

It's time for another round of Ask Jesse! Jesse fields questions from podcast listeners about how to manage multiple bank accounts, negative budgeting, and whether he can slow down his speech pattern (sorry Leslie!)

 

Find a YNAB Certified Coach:

https://www.ynab.com/coaching-directory/

 

Got a question for Jesse? Send him an email:

[email protected]

 

Sign up for a free 34-day trial of YNAB at www.youneedabudget.com