You Need A Budget (YNAB)

A weekly dose of just the right medicine to help you get out of debt, save more money, and break the paycheck to paycheck cycle.

Rule Three Reviewed 05/22/2023

Rule Three Reviewed 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 question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26908137

Rule Two Reviewed 05/15/2023

Rule Two Reviewed 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 him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26817882

Rule One Reviewed 05/08/2023

Rule One Reviewed 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 Four Rules if you can. One person will be chosen at random, and the winner will receive a $100 VISA gift card! To enter the contest, write a post with your mother's rules to live by, told in YNAB "four rules" style, on any of YNAB's social media channels -- Facebook, Instagram, Twitter, or Tik Tok. Make sure to tag YNAB, and include the hashtag #fourrulestoliveby in your post. Winner will be announced on May 11th, 2023! Facebook: Instagram: Twitter: Tik Tok: Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26771736

A Mother's Method for Living Well (Contest Announcement!) 05/01/2023

A Mother's Method for Living Well (Contest Announcement!) 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 will receive a $100 VISA gift card! To enter the contest, write a post with your mother's rules to live by, told in YNAB "four rules" style, on any of YNAB's social media channels -- Facebook, Instagram, Twitter, or Tik Tok. Make sure to tag YNAB, and include the hashtag #fourrulestoliveby in your post. Winner will be announced on May 11th, 2023! Facebook: Instagram: Twitter: Tik Tok: Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26699046

What's In Your Financial Shovel of Dirt? 04/24/2023

What's In Your Financial Shovel of Dirt? 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 /episode/index/show/youneedabudget/id/26611599

Giving Future You A Bit More Negotiation Ammo 04/17/2023

Giving Future You A Bit More Negotiation Ammo 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 plumber to fix some leaking pipes in your basement? These are possible future expenses you can use Rule Two to plan for. Now, hopefully you won't be getting into fender benders on a regular basis! But that auto shop expense might trigger you to think about upcoming regular car maintenance that you haven't yet budgeted for. Likewise, owning a house means regular maintenance, so at some point you're probably going to call a plumber out again. Time to assign money in your budget and plan for that! This is a good, easy strategy for improving your Rule Two thinking, and put future you in a better financial position. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26542146

Paid In Full, But Always in Debt 04/10/2023

Paid In Full, But Always in Debt 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 expense on their credit card. Does the distinction matter though? Jesse ponders the question, and gives an update on his own experiment of only using a debit card for expenses in 2023. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26450916

Jesse Chats with a Guy Who Has Never Used a Credit Card 04/03/2023

Jesse Chats with a Guy Who Has Never Used a Credit Card 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 that doesn't mean you HAVE to use one. Ben demonstrates that it's possible to have a robust, well-planned financial life without credit! Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26393307

Ask Jesse: Talk Slower, Pay Down Debt Faster 03/27/2023

Ask Jesse: Talk Slower, Pay Down Debt Faster 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: Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26334807

Rule One and the Pursuit of Nothing 03/20/2023

Rule One and the Pursuit of Nothing Jesse challenges the idea of constantly pursuing something financially. For many of us in the modern world, our default is to always be chasing something -- more things, more experiences, more retirement funds, more debt paid down. Some of these things are a net good, some... maybe not. Jesse reminds us that our financial life doesn't always have to be in pursuit of something. It's ok to just let your money support your life, and nothing more. Can you do that, just for a little while? Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26204238

Expensive Is a Lazy Word 03/13/2023

Expensive Is a Lazy Word When people say "that's too expensive," what do they mean really? That they can't afford it, that it costs too much for a certain group of people, that it costs too much on principle? Jesse relates Rule One to the word "expensive" and concludes that its meaning is too slippery to be a useful term for people following the Four Rules. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26204205

Ask Jesse: Travel Hacking, Credit Cards, and YNAB'er Experiences 03/06/2023

Ask Jesse: Travel Hacking, Credit Cards, and YNAB'er Experiences In this installment of Ask Jesse, Jesse answers questions from podcast listeners about travel hacking and credit card and debit card fraud protection. He also reads an experience from one YNAB'er who switched from using credit cards to debit cards. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/26132289

Rule One and DIY FTW 02/27/2023

Rule One and DIY FTW Jesse analyzes a recent situation in which he was planning to build something in his wood shop, when a friend remarked that he could buy the same thing a lot cheaper. While we talk about money all the time in YNAB, and frequently equate money with time, and discuss the tradeoffs of buying this thing versus that thing -- Jesse reminds us that we don't have to think of everything in terms of economic decisions. Sometimes you give dollars a job (Rule One) which is for sheer enjoyment. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25985469

Debit vs Credit Card Smackdown (and a Rant) 02/20/2023

Debit vs Credit Card Smackdown (and a Rant) In response to episode #603 "You Spend More Money with Credit Cards," many listeners wrote Jesse to pick a bone with his claim that the debit card was a superior way to pay for things. The arguments usually boil down to the assertion that credit cards have better purchase protection and fraud prevention compared to debit cards. Jesse addresses these concerns, and more, on today's episode. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25980147

Ask Jesse: Save for Cars or Pay Down Mortgage, Debt Consolidation, and How Do You Know When to Spend? 02/13/2023

Ask Jesse: Save for Cars or Pay Down Mortgage, Debt Consolidation, and How Do You Know When to Spend? Jesse answers questions from the YNAB mailbag, including whether a couple should save for new cars to replace aging vehicles, or pay down the mortgage faster, whether debt consolidation is a good idea, and how exactly do you know when it's ok to spend money? Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25899990

One Thing That Tells You You're Doing Money Right 02/06/2023

One Thing That Tells You You're Doing Money Right Jesse shares one key indicator that you are budgeting and doing your money right. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25758117

A Major Downside to Not Having Money Stress 01/30/2023

A Major Downside to Not Having Money Stress Not having money stress is a GREAT feeling to have. But a YNAB employee, Katie, pointed out a downside to it -- people assume you make more money than you really do. Because who else would have no money stress except people who are rolling it in? Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25758108

Ask Jesse: Doubling Income, Real Estate, Debit Card Fraud Prevention 01/23/2023

Ask Jesse: Doubling Income, Real Estate, Debit Card Fraud Prevention Jesse fields more listener questions today, including what you should do when you double your income (teaser: there's really not a wrong answer as long as it's saving!), how to budget for real estate investments, and whether debit cards have sufficient fraud protection to use over credit cards. Please keep your questions coming! Send them to: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25693125

Ask Jesse: More on Credit Cards, Tracking 401k in YNAB, and Paying Off Student Loans 01/16/2023

Ask Jesse: More on Credit Cards, Tracking 401k in YNAB, and Paying Off Student Loans Jesse answers listener questions about tracking 401k deposits in YNAB and how to strategize paying off student loans. Jesse shares his evolving thoughts about credit cards, and why the Mecham household will only use a single debit card for expenses in 2023. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25616664

Now Burn It All Down Again 01/09/2023

Now Burn It All Down Again Last week Jesse urged YNAB'ers not to make any sudden or drastic moves to their budget. But you know it's the beginning of the year, and that can only mean one thing! It's time for a budget burndown. Every year Jesse burns down his budget... er, plan, and examines every single assumption built into it. Do we really need to own a house? What if we lived in an RV for awhile? Do we need two cars? What if we sold one? Etc, etc. The point of this exercise is to question everything, and in the process, better understand what your non-negotiables are. In most cases, you'll likely put most of the categories you had back into your plan. But perhaps the burn down process helps you identify a couple areas that don't really serve you anymore, or dollars that could be more useful doing a different job. So, get ready to burn it down! Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25540602

Don't Make Big Changes, People! 01/02/2023

Don't Make Big Changes, People! Happy New Year! We hope 2023 is a fruitful and productive year, financially and otherwise, for everyone. It's that time of year again, the time for resolutions, big goals, and new plans. Jesse urges you to pump the brakes, however, and DO NOT make big changes to your budget. Not right now. Just iterate on what you've been doing, and try to do a little bit better than last year. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25476903

A Strategy for the Holidays in 2023 12/26/2022

A Strategy for the Holidays in 2023 We hope you had a Merry Christmas and very happy holiday! If you didn't use YNAB to plan for this year's Christmas bill, that's OK, you can start now for next year! In January start saving for Christmas 2023 by putting aside one twelfth of the Christmas budget each month. Jesse also has another exercise for you. Write a little note to yourself about what went well this Christmas, and what you want to do differently next time. Then set a reminder for that note to open back up in October 2023. You'll have forgotten by then, and you'll have plenty of time to prepare to make the next Christmas even better than the last. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25364808

Every Gift I'm Giving Julie, Forever 12/19/2022

Every Gift I'm Giving Julie, Forever Jesse shares some of the gifts he's given his wife, Julie, over the years, and why every year from now on the gifts will be made, not bought. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25364739

Ask Jesse: Tracking 401k in YNAB, Early Retirement Budgeting, Advisors, and More 12/12/2022

Ask Jesse: Tracking 401k in YNAB, Early Retirement Budgeting, Advisors, and More Jesse answers a grab-bag of questions from listeners, including whether it's a good idea to track 401k investments in YNAB (it's not), how to budget for early retirement, good books for learning how to to invest, and more. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25286313

You Spend More Money with Credit Cards 12/05/2022

You Spend More Money with Credit Cards It's a fact, you do. We know this because banks LOVE credit cards, and they're incentives for using credit cards rely on the fact that many people spend more money on credit than they would otherwise. Jesse meditates on the nature of credit card fees, incentives, and the game that banks play to get people to spend on credit. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25211814

The Different Tenses of Money 11/28/2022

The Different Tenses of Money Jesse riffs on the idea that money has different "tenses," that is, money's purpose is to be spent, and spending can happen in the past, present, or future. Debt is past spending, savings is future spending, and so on. It's an interesting idea, one that might help you better visualize the purpose of money in your own life, and how it aligns with your priorities. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25142598

Rule One and Gratitude 11/21/2022

Rule One and Gratitude For everyone listening in the United States, Happy Thanksgiving! Jesse encourages us this week to step back and make a list of everything we are thankful for. Taking a moment to express your gratitude for the things you have and the things that are going well in your life is not only good for your soul, it's good for your budget too! We tend to spend so much of our time in the weeds of categories and transactions, that a little time looking at the big picture and being grateful can help us get back in touch with our priorities. Is what you have enough, is it sufficient? As Jesse says, you really can't be too grateful! Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/25079139

What's the Most Expensive Thing You've Budgeted For? YNABers Share 11/14/2022

What's the Most Expensive Thing You've Budgeted For? YNABers Share Jesse shares results from a recent survey of YNABers asking: "what's the biggest thing you've saved for with YNAB?" Vacations, cars, houses, college... there are some big line items indeed! Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/24995238

Ask Jesse: What's the Most Important Metric? 11/07/2022

Ask Jesse: What's the Most Important Metric? YNAB'er Allison asks: of all the metrics in the YNAB software, which is the most important one to track? To which Jesse answers... none of them! Jesse prefers to track net worth over time, which is not captured in YNAB since it's a calculation of the value of what you own minus what you owe. As Jesse explains, though, if you are working the Four Rules well, then you will create more opportunties to save and invest money and pay off debt, all of which will increase your net worth. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/24922353

The Last $300 10/31/2022

The Last $300 Once you've started working the Four Rules, you start to realize that most of your money is kind of... spoken for. You need to pay the rent, the utlities, insurance, and so on. When you get through the list of non-negotiables, there's often just a few hundred dollars each month to play around with in the budget, and those dollars are where the real gains are made. Like David Bach's "latte factor," the small optional expenses we accumulate without budgeting properly can add up to big savings over a surprisingly short amount of time. Got a question for Jesse? Send him an email: Sign up for a free 34-day trial of YNAB at /episode/index/show/youneedabudget/id/24842016

You Need A Budget (YNAB)

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