You Need A Budget (ynab)

YNAB'er Elizabeth wrote into the podcast asking for clarification of Rule Three -- can you use it too often?   Simply put, If you aren't reaching your goals, Jesse says, you're misusing Rule Three. If you aren't saving the money you thing you should be saving, then Rule Three has become an escape hatch for your budget, instead of an empowering tool.   Scarcity is a powerful motivator for budgeting. Embracing the fact that you have limited dollars, and that you cannot rob from your future self to pay unexpected expenses today, means you will have to become comfortable saying "no."   If you'd like to write into the show, email Jesse your questions at podcast@youneedabudget.com.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

With everything that has transpired this year, we could all use some positive news. Today Jesse highlights a couple of positive stories from YNAB users who have managed to save money and stabilize their financial situation despite job loss and salary cuts due to COVID.   Follow the four rules, and things will get better. Budgeting isn't the end-all-be-all, it's not the solution for everything, but it will help you make your financial situation better. Budgeting simply works!   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

In light of the terrible events that have transpired in 2020, YNAB is launching a new initiative to help those in need. YNAB is partnering with non-profit organizations that work with marginalized communities on personal financial and financial resource issues. YNAB is offering licenses for its software for free to these non-profits, so those in need can benefit from YNAB's powerful budgeting tools.   If you work for a non-profit or know of one who could benefit from this program, visit https://www.youneedabudget.com/good for more details and how to sign up for the program.

Jesse wraps up the Atomic Budgeting series, based on the ideas in James Clear’s book Atomic Habits, with a look into how our environment shapes our decision making.   The world is awash in advertisements — billboards, store displays, TV, YouTube, etc — which aim to subtly influence us to buy products and services. It’s hard to avoid them, especially when you spend time in areas or websites where targeted ads can pique your interests and potentially cause you to buy things you otherwise wouldn’t have sought out. Even our social groups can influence our purchasing decisions. Whether your friends and neighbors are conspicuous spenders or frugal, their collective habits will become the normal behavior in your social circle.   So the last step in “atomic budgeting” is to be aware of your environment, and choose your friends and social circles wisely.   “Join a community where the normal behavior is the behavior you want.”   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Jesse discusses James Clear's "laws" of how people make lasting changes to their behaviors and how they might apply to the YNAB'er looking to improve their budgeting habits.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

In the third installment of the atomic budgeting series, in which Jesse applies the principles in James Clear's book Atomic Habits to budgeting and personal finance, Jesse discusses the concept of becoming the person who has the traits you wish to have.   Typically when we think of making personal change, we set goals and then a process to achieve that goal. Yet, once we achieve the goal (if we do), does the change we made to achieve it continue on? Are the new habits long-lasting, or do we revert to our old ways? Too often, the latter proves true!   As Clear says, "every action you take is a vote for the type of person you wish to become." If you want to become a person who is smart with money, who is rarely stressed with financial concerns, and budgets with ease... then you must start identifying yourself as that type of person. Then prove it with your actions.   If you're a weightlifter, you lift weights. If you're a writer, you write. You cannot be the person you claim to be without doing the things that

Jesse continues with part two of the Atomic Budgeting series, applying the concepts in James Clear's Atomic Habits to budgeting and the pursuit of financial freedom.   One of the key concepts in Clear's book is focusing on building effective systems for achieving your goals, rather than on the goal itself. Goals are great things, but without a logical, replicable, and flexible system, you are unlikely to consistently achieve your goals.    YNAB's Four Rules comprise a simple, flexible, and replicable system for achieving the goal of freeing up financial resources to handle unexpected events and do more of the things you want to do in life. The Four Rules don't ask you to come up with a solid number of dollars to save each month, or a percentage; rather, they ask you to follow certain processes (like giving every dollar a job) that ultimately help you achieve the goal of saving money. By staying process-focused rather than goal or number focused, YNAB allows you "roll with the punches" and adjust as your life

Jesse has become a fan of James Clear's Atomic Habits, in which Clear explains how small changes to your habits can build up to big changes in your life. Naturally, Jesse saw how atomic habits could work for budgeting too.   So for the next few weeks, Jesse will be covering several aspects of "atomic budgeting," starting with the power of compounding interest.   Atomic Habits by James Clear: https://www.amazon.com/Atomic-Habits-James-Clear-audiobook/dp/B07RFSSYBH/ref=sr_1_2?dchild=1&keywords=atomic+habits&qid=1592096296&sr=8-2   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Jesse and the YNAB team are excited to announce a new service: financial wellness for businesses and their employees! For any company, big or small, YNAB will educate your employees on the most important yet often overlooked aspect of financial wellbeing… budgeting of course.   Financially stress-free employees are good employees. They are empowered, they have freedom to be creative in their life, and they are more productive as a result.   This is a FREE service for the business. You can find out more by going to:   https://www.youneedabudget.com/wellness/

The attentive gardener notices the small things. The way plants grow, flourish, and wither on a daily basis. He knows that weeds are easily dispatched when pulled daily. The gardener plays a long game, but sees each move in detail.    Budgeting is no different. The attentive budgeter notices small things, finds small efficiencies there, because she checks in often. She knows that it's easier to correct course when her budget is moving in the wrong direction, because she watches carefully and often. The daily reconciliation becomes a joy, not a chore.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

It's a common refrain in times of crisis. We must do something. But inaction is, in fact, always an option. Many times, especially when it comes to finances, it is a great option! Jesse reminds us that, in light of current economic conditions, it's perfectly OK to do nothing.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

There's something growing at the Mecham household... and it's in the backyard! Jesse confesses he spent a good portion of his paternity leave preparing a garden with a handful of chicks, fruit trees, and a garden full of asparagus, cantaloupes, and other goodies.   As always, while exercising his green thumb Jesse was thinking about budgeting. Immediate gratification is rare in the natural world. Nearly everything worth having takes time, effort, and care to grow and develop. Chicks need to be fed and kept safe and healthy before they can grow into egg-laying hens. Fruit trees take years before they bear their first fruits. Yet these things, once harvested, can be so much more satisfying than, say, a generic carton of eggs at the store.   Budgeting is no exception to the rules of Nature. Good things come to those who wait, and steward their money well. But the good things are worth it.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

After receiving several questions about what to do with windfall money during times of economic uncertainty (like these), Jesse tackles the topic in today’s episode. As always, but especially true nowadays, cash is king!   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Freshly returned from paternity leave, Jesse discusses how YNAB has handled the coronavirus pandemic as a company. As always, his focus and the company's focus has been on giving the best budgeting advice they can.   Additionally, the YNAB team has written articles exploring how people can weather the financial storm in the wake of COVID-19. You can read the blog entries here: https://www.youneedabudget.com/blog/     Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Jesse examines how the recent panic buying of food, home goods, and other staples highlights the intrinsic value of certain things that we take for granted. When demand for historically safe assets like bonds and gold falls, yet demand for household goods like flour and toilet paper soar, it shines some light on the practical value of things. In short,  you can eat flour, but you can't eat a bar of gold!   In the future, Jesse encourages us to consider saving not only for future expenses and retirement, but also for some staples and basic goods for unexpected times.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Jesse muses on the impact the coronavirus will ultimately have on people and their habits. When society reopens, will people return to their previous habits? Or will they grow, having spent their time in isolation examining themselves and their priorities, their Rule Zero?   Jesse hopes that people do use this time to reflect, to re-examine their life and rediscover their priorities, and, most importantly, write down the wisdom that comes from that process!   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Last week Jesse discussed the importance of Rule #1, giving every dollar a job. Rule one is always important, but in uncertain times like these it takes on renewed significance. Jesse has often talked about the rule before the rule, though, the so-called Rule Zero.   Rule Zero is understanding what's important to you, why you're bothering to give your dollars a job in the first place. At the end of the day, to what end are you budgeting? What's the purpose?   In the wake of the pandemic and economic woes gripping the country, consider whether the answer to Rule Zero has become clearer to you. Perhaps in these times you can find not only the resolve to budget like you've never budgeted before, but also to clarify why you're budgeting in the first place.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

With the world at a standstill due to the COVID-19 pandemic, one thing is certain. We’ve never budgeted at a time like this!   Jesse offers some comforting words in this time of crisis, and reminds us to follow Rule #1: Give Every Dollar A Job. Never stop budgeting. Even if it’s only a week ahead, a day ahead, staying engaged and continually planning will give you the best chance to survive financially in these times, and, eventually, thrive. Budgeting is one area of our lives that we can control, in the midst of so many things we cannot.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

At YNAB there is a document called the Vision Doc, which spells out the “commander’s intent” for the company, how to behave and act on the company’s behalf. Employees must make many decisions on a day to day basis, but with a clear commander’s intent they have the freedom to make those smaller decisions while adhering to the company’s greater goal.   It’s useful to develop the same commander’s intent for your budget. With a clear goal and aim for the budget, it becomes easier to make those small, day to day money decisions that, as we know, can add up to big dollars over the course of a year!   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Jesse reads an excerpt from the book The End of Average by Todd Rose. In the late 1940's the Air Force had a dangerous problem on its hands -- aircraft of all kinds were malfunctioning and crashing at alarming rates. The Air Force brought in scientist  Lt Gilbert S Daniels to diagnose the problem. Daniels discovered that the Air Force had designed cockpits based on thousands of physical measurements taken from its ranks of pilots, then averaged. Daniels ascertained that despite the rigor and breadth of the measurements, not a single active pilot in the Air Force actually matched up with all the averages. In short, the Air Force had designed their planes around an average pilot that didn't actually exist, causing pilots to have trouble controlling their planes.   We can take a lesson from Lt. Daniels discovery when it comes to our budgets. It's tempting to come up with an average for each line item, and compare your budget to someone else's or perhaps even a regional or national "average." Designing your budg