Do you live paycheck to paycheck?
Do you have trouble hitting your savings goals or getting out of debt?
Do you make money but have no idea where it goes?
Do you struggle to get your cash flow under control?
My family has suffered through all of these problems and more at various times, so if you are dealing with money stresses, I really, really feel you. That is why I wanted to share this simple, yet life changing piece of software and philosophy we decided to try this summer. It is called YNAB (You Need A Budget) and it’s pretty amazing.
The idea behind YNAB is based on 4 simple rules to help you deal with the above money problems:
- Give every dollar a job.
- Save for a rainy day.
- Roll with the punches.
- Live on last month’s income.
The software is basically a snazzy Excel file. No accounting skills necessary to operate it. When you have money come in (i.e. a paycheck, birthday gift, etc.) you add it to the bank account as income. Then you increase your budget items (i.e. rent, food, car, etc.) by the same amount of your income- no estimating, no guessing. When you spend money you record it as an expense in the bank account to whatever budget item you spent it on (i.e. you buy groceries and put the amount on the food line). The key is to spend based off of the budget and NOT what’s in your bank account.
Of course in reality nothing is really just that simple. The great thing about YNAB is all the support– the emails, the free classes, the forums. I think the hardest part for me was the mental and emotional commitment to making it work. But it’s well worth it. Download the software– there is a free 34 day trial. And if you decide YNAB changed your finances, your relationship, your stress levels, your business, and your life, buy the license with my coupon and we’ll each save $6: http://ynab.refr.cc/N9PSBXW
Wishing you financial freedom!