YNAB Personal Finance Software: Why I Love it!

I just wanted to share with you some of the success that I am having using YNAB (You Need a Budget) Personal Finance Software. It has really got me motivated to manage my money in a new way. For a long time I was a spreadsheet budget-guy, finding my groove. If you have read any of my prior posts, then you are familiar with my story. For the large part of the last 10 years I have been working on 100% commission. It requires incredible discipline with your money as you have “high” times and “low” times financially. Now I make most of my income online through blogging (even started a new project with Bob called Blogging Your Passion ). A simple ledger spreadsheet worked for me in the past because I needed to see how long the money was going to last before it ran out. The ability to see 3 months down the road provided a sense of security for me. In fact, most personal finance software today lacks in its ability to forecast in the future. Still, my system was not very practical because I was always focused on the account balance and could never get very crisp on budget categories. This made it difficult when deciding on making smaller purchases. For awhile I made a switch to a free Quicken version that was offered to me inside my Credit Union bank account. While it seemed very robust it lacked the ability to help me as I was moving forward. It would alert me when I over spent in a category but had no way of making adjustments to my future budget. Finally, I decided to take the plunge with YNAB. Well, I should back up for a moment. I originally downloaded the trial, poked around a bit on my own, and decided not to move forward. However, what got me over the hump was the educational nature of the system of YNAB. I read the free eBook explaining the 4 rules (which really made sense), I attended a few of the free finance webinars online, and decided to put more effort into making it work. My Personal Benefits of Using YNAB Here are a few of the personal benefits I have received by jumping in and making YNAB software work for me. The Increase in My Financial Education YNAB is more than just a slick personal finance software package. They believe strongly in financial education and it shows. They run several online webinars every week designed to assist you in making your money work. While one of the courses is an introduction to using the YNAB software, they go beyond that and create enormous value in my opinion. Some of the classes you can take are: Beginner Budget Workshop, Good Budget Habits, What Are Your True Expenses, and so on. To take these classes, just scroll down the home page to free live classes. The Principle of Budgeting Available Cash I love this concept. YNAB teaches you to budget “available cash.” It does not presume on the future by causing you to spend in categories when the money is not yet there. Maybe we can get the US Government to use YNAB? Only slightly kidding of course. If you are truly living paycheck to paycheck (which according to recent studies 70% of Americans are), then YNAB can help you in this area. You can start by putting in your current bank balance, dividing that income into categories (YNAB Rule #1: Give every dollar a job), and know exactly what you have to spend until next paycheck. The Intuitive Nature of the Software When YNAB says they have 4 rules, it is not just some theory that sounds good. The rules are deeply integrated into how the software works. For example, rule number one states that you should give every dollar a job. If you do not assign every dollar to a budget it automatically gets assigned to the available money for budgeting next month. If you do not assign a job, then the software will. The eventual goal is to help you to stop living paycheck to paycheck. They want you to eventually have enough money in your “YNAB Buffer” to live off of this month’s expenses from last month’s income. That is when you can really begin to live financially free. If you have not yet settled on a personal finance software, I would encourage you to give YNAB a look. At the very least, sign up for a free webinar and get some financial education. Related Articles: Whats the best personal finance software? 10 Options for Personal Financial Planning Software Make Your Own Personal Budget: Articles, Tips, & Resources Comparing 5 Personal Finance Software Options YNAB 3 Budgeting Software Review 3 Essential Rules of Personal Finance Create A Household Budget For FREE! Jonathan has been blogging online since 2009 and is still in awe that the Creator of the Universe desires to have a relationship with him. He recently launched a new blog with Bob called Blogging Your Passion . It is dedicated to help bloggers find what it is they are passionate about and turn it into an income-generating blog. As a thank you for subscribing to our newsletter you can download our quick eBook ” 25 Ways To Save Money in 2011 ” for FREE! The articles on this site are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Also, many of the CPF articles help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others. Find out more here .

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YNAB Personal Finance Software: Why I Love it!

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