What does the word “Budget” mean to you?

A plan for your money

Remove yourself from the financial edge.

Increase Awareness.

Lower your stress level.

A tested set of rules designed to improve cash flow

Budget - Focused This is where the action is!

“It’s impossible to know what to budget for.”

Rule One Give Every Dollar A Job!

Set up job descriptions for your money. We call these Categories.

When you are first starting out you’ll need to budget each paycheck as it arrives, prioritizing as you go...

You will keep track of three things : How much you budgeted How much you spent How much you have left

Not all categories are the same... One Transaction each month Electric Bill Mortgage Phone Bill Car Payment

Not all categories are the same... Multiple Transactions each month Groceries Gas Entertainment

At the beginning of the month you budget $300 toward groceries.

On the 5th, you go shopping and spend $175. You enter the transaction in your register, and the budget is updated automatically.

You go shopping again on the 23rd and spend $95 more... YNAB keeps track of the category balance for you.

You make one more small trip, and the category is zeroed out.

Spending decisions are made by focusing on the Category Balance.

...instead of the Bank Balance X

Everyone wants your money.

You need a better tool to use against that than a Bank Balance! X

“There are too many unexpected things that come up that you just can’t budget for.”

Save for a Rainy Day Rule Two

Rainy Days are expenses that occur outside of your normal monthly expenses.

Predictable Rainy Days We know when it will rain, because it was forecast.

It’s April now, and you have a car insurance payment due in June. Let’s take car insurance as an example.

So you have 3 months to come up with $600.

At the end of May, you have $400.

So you have 3 months to come up with $600. At the end of June, you have $600.

You can easily pay the bill. So you have 3 months to come up with $600.

Unpredictable Rainy Days We don’t know when it will rain, but we know for sure that it will.

Let’s take car repairs as an example.

“I can barely make it from paycheck to paycheck - having a monthly budget will never work.”

Stop Living Paycheck to Paycheck Rule Four

Live on last month’s income

You are working with a known number so there is no guesswork. ?

You no longer have to wrack your brain timing your paychecks with your bills.

It provides a cushion that removes you from the paycheck to paycheck cycle.

“I don’t want to feel restricted and controlled by the budget.”

How do you feel now?

Restricted by your current financial situation?

Controlled by a lack of money?

...or maybe you’re just feeling disorganized?