For me, budgeting was hard, but budgeting with YNAB is not as hard. Since we have been using YNAB for about 2 years now, it is really easy! My wife and I really don’t have many “heated” discussions when it comes to money as of late. Here are a few key reasons:
- We set up a zero based budget in YNAB and learned to prioritize. This helped us look towards the future instead of the past. We did an excellent job at tracking our spending for years without any real forward progress in controlling our money. We were just able to see where it went, but did not have a plan until we created a comprehensive Zero Based Budget.
- Diligence in entering all spending into YNAB in a timely fashion.
- Reconcile YNAB with bank account each month to make sure we did not forget to enter something.
- Don’t overspend the category.
- Spend based of YNAB category balances, not check book balance.
- If an expense comes up unexpectedly, deal with it.
- If it is going to be recurring expense, make a new category and figure out how to fund it. This may take some creativity, but is doable even if you have to cut another category or categories.
- If it is a one time expense, maybe it has to come out of the buffer and then rebuild your buffer over the next few months.
- Review, revise and relax.