You Need A Budget (ynab)

Recently someone asked Jesse about his thoughts on preventing lifestyle creep, a major supposed gremlin of budgeting. Jesse doesn't even like the question, and discusses why worrying about lifestyle creep is looking at budgeting in the wrong light.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Recently Jesse received an email from a woman who claimed YNAB was really a program about mindfulness... just using money and budgeting as the entry point. So Jesse invited this woman onto the podcast to talk about the connection between mindfulness, meditation, and money. Welcome to Kathleen Slattery-Moschkau, a mindfulness expert, yoga instructor, and filmmaker currently residing in Madison, WI where she runs The Studio.   The Studio: https://www.thestudiomadison.com/about-us-2/   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

Let's face it, it feels good to buy things. That's not necessarily a bad thing, either. Spending on hobbies or other things that bring you value -- maybe a date with your partner -- makes you feel good for a good reason.   However, from time to time we need to check the rationale behind our purchases. Maybe you intend to start a new exercise regime, so you buy new shoes and clothes and perhaps a new journal as well to document your progress. But have you actually started the program yet?   Often simply purchasing something related to your goals can make you feel like you've made progress.... when, unfortunately, that's not really the case! Jesse calls these "progress purchases," and warns you to watch out for them!   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

We're all familiar with the situation. A person reads a book, learns a new skill, or discovers a method, and gets REALLY INTO IT. Brimming with enthusiasm, they share it with their partner and try to get them involved, only to be met by reluctance and intransigence. The reluctant partner is a common trope, even when it comes budgeting!   The idea that your partner is dragging their feet because they don't share your goals about budgeting and personal finance, however, is a false one. In Jesse's and the YNAB team's experience, the reluctant partner is often simply overwhelmed. They usually want to share the goals and aspirations of their partner, and share in the process of attaining them, but the speed and intensity of the habit changes may be too much.   So if you're just getting into YNAB, break it gently to your partner. Talk about your goals, get on the same page about your finances, then start talking about the process of getting there. Small steps are the key to change!   Sign up for a free 34-day trial

By popular request, Jesse flips through his office bookshelves and discusses the books he's read recently... and, well, some that he hasn't but is getting around to!   This week he covers books in the “business” category, ranging from marketing, advertising, management theory, team building, and customer service. Many of these books have had an influence on the way YNAB operates and its success.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

By popular request, Jesse scans though his office bookshelf and discusses the books he's read recently... and, well, some that he hasn't but is getting around to!   This week he covers books in the "general" category, basically anything that isn't specifically about business. Next week he will cover the books on his business shelf.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com  

Jesse interviews a YNAB'er, nurse practitioner Naseema, about how she used YNAB and the four rules to pay off an extraordinary $200k of debt in just under two years, all while going through some tough life transitions.   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com

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