My Experience Using You Need a Budget (YNAB) | Money Guy (2024)

FAQs

My Experience Using You Need a Budget (YNAB) | Money Guy? ›

It requires a significant amount of involvement from the user, especially at the beginning (once you get your budget up and running it isn't as much work). YNAB

The biggest drawback to YNAB is that you'll need to do some manual work. This might include entering transactions (if you don't link your accounts or you pay in cash), categorizing transactions, and assigning funds to each budget throughout the month.

How Rule Three works. If you run out of money in one category but still need (or want!) to make a purchase, just move money from another category to cover it. No shame or guilt needed—it's your money and you can spend it how you want.

YNAB lets you operate with current information and makes it easier to manage money with a partner. Anyone with a phone has access to the info, all the time—no excuses. Real-time updates make it easy to trust your financial plan. YNAB's integrated loan planner helps demolish debt.

Think of it like this: with Rule Four, you use last month's money to pay this month's expenses. You're using “old” money instead of “new” money. We've got a handy little calculated “official age” in the YNAB app.

YNAB does not offer credit score monitoring. Mint offers credit score tracking and shows you trends over time. Both apps offer budget reports related to net worth and spending.

Yes, YNAB is safe.

What is the $1 rule? The $1 rule is my spin on the age-old cost-per-use idea, specifically calling out a dollar as the benchmark. Before buying an item, figure out how many times you'll use it. If it breaks down to $1 or less per use, I give myself the green light to buy it.

YNAB: Which app is right for you? There isn't a clear winner in this comparison. Monarch Money is best suited for people who want an all-in-one personal finance tracking and planning app, while YNAB excels if you're looking for a straightforward budgeting tool with a tried-and-true strategy.

Give Every Dollar a Job

Here at YNAB, we teach four simple budgeting rules that lead to less money stress. Let's start with Rule One: Give Every Dollar a Job.

Is YNAB good for retirees? ›

Sometimes budgeting would come up while talking to customers and I always mentioned YNAB. It has made such a big difference for both my retirement nest egg and peace of mind, and I am always quick to tell others!

Aim to Age Your Money At Least 30 Days

Well, in YNAB, your budget calculates that number for you. If you're not using YNAB, you can get a rough idea by looking at your account balances, which should hopefully grow each month.

So you can start fresh after giving your accounts a quick check to ensure your balances are correct—reconcile your accounts ↗️ if they aren't. So, whether you want to move on from a starter budget or you just want your money to reflect new, updated priorities, try a Fresh Start.

YNAB whack-a-mole, or WAM, is when you borrow money from one category to cover expenses in another. It happens and it's more than okay—we encourage it!

YNAB Founder

Jesse Mecham is a personal finance expert, speaker, business leader, and the Founder of You Need A Budget (or YNAB if you are very busy and important).

Have you ever found yourself struggling to save money, even when you're earning enough to cover your expenses? Well, that's a common problem that many people face in their personal finances, and it's often because they're not budgeting for their true expenses.

Disadvantages of budgeting

a budget could be inflexible, and not allow for unexpected circ*mstances. creating and monitoring a budget can be time consuming. budgeting could create competition and conflict between teams or departments.