My net worth went up!

After the loss of my husband in November last year, I knew I had to be really diligent with money... especially as I didn't know how long it would have to last. So in the last couple of days, I started using YNAB to ensure I stayed aware. In March 2019, after his life insurance came through, my financial advisor told me that my best option was to keep the money against the mortgage to keep the interest down as she expected that I would be going backwards by approximately $20K per year.

Building on her advice, I kept the money against my mortgage and gave those dollars jobs.

Clearly, she didn't realise the power of YNAB because at the end of April 2019, despite losing my husband's $100K/year (gross) salary my net worth rose by almost $250 and my sinking funds are slowly growing. I know it's not much, but I can't express what a relief it is to see my net worth go up. The fear that I might actually go backwards by $20K (or more) per year was  terrifying. Thank you YNAB for the little cash win and the huge emotional one. My kids and I are so extremely grateful.

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    • TechieM2
    • IT Professional and General Geek
    • techiem2
    • 6 mths ago
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    • Reported - view

    I never even had any idea of what my net worth was before starting YNAB.  I knew it was positive due to my retirement accounts, but that was it.  Now that I have it all in YNAB, and have much better spending/saving habits now thanks to YNAB, I love seeing the Net Worth slowly grow as I have more money slowly in the bank/investments/etc. aside from my retirement accounts!

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  • I'm sorry for your loss but I'm happy that you're feeling like you have the ability to make good choices to lead your family forward.  Hopefully this will lead you to some peace of mind.  Keep in mind that there will be ups and downs financially, as you'll probably have forgotten some expenses and new ones will arise (don't know the age of your kids but mine only seem to get more expensive!).  But the idea is that scarcity breeds clarity.  You only have so much money and you know what you need to do with it before you get paid again.  Putting money in true expenses and sinking funds will help you roll with the punches.  You won't know when you'll need car repairs but you'll need them eventually, or when you'll need to hire a plumber.  The roof will eventually need to be redone, eventually, you'll need to replace an appliance.  Eventually the kids will need braces or you'll want to be able to pay for scouts.  You'll learn what are needs and what are wants.  Awesome camps are a want.  Day care is a need.  Clothes are a need.  The fancy shoes your teenager wants are a want.  I'm glad for you that you are feeling up; frankly if I lost my spouse, I'm sure I would struggle for a few years while I got more schooling and got a better paying job.

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    • Technicolor Cheetah thank you for your kind words and perspective. You are quite right about the more expensive and unpredictable costs. My kids are 14 (with braces) and 4 (twins). Daycare is a financial money pit so I’m counting down til the twins go to school. Hopefully, I can enjoy a  grace period before the appliances start to die on me. The learning curve for want v need is a hard one. I’m not sure I’ve got the lesson yet, but hopefully it will all work out in the end with the help and clarity of YNAB. 

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      • Technicolor Cheetah
      • Not sure when I became a cheetah...but I'll run with it
      • technicolor_cheetah
      • 6 mths ago
      • Reported - view

      Cadet Blue Stallion 

      You can always set your teen up with his/her own budget for allowance/money earned.  If your kid cares about clothes, you could give them a budget for clothes seasonally, and then tell them they need to have x number shirts minimum, y number pants/shorts minimum, and appropriate shoes for their activities.  Then let them know that if they blow 3/4 of the budget on fancy kicks, they'll be shopping clearance and the thrift store for their clothes.  They will be more likely to be more mindful of their choices.  Or they'll realize that they need to kick in their own money and/or earn more.  Or they'll have an interesting time until the next budget season runs along if they went with their wants without taking account their needs, what we call around here a learning experience/teaching moment.  If your kid doesn't care about clothes, then it's still a good learning experience because we all have chores we must do regardless of fun or not.  You might want to specify a number of shirts/bottoms because I know my boys would be all, I need 2 pairs of pants, not taking into account that they're slobs and also they would have to wash clothes every other day since I'm sure as heck not doing laundry that often.  

      You could do the same for school supplies.  Or if you were planning on giving them $x for a new device/stereo/screen/whatever, letting them decide which one and what features they want.  Just a thought.

      I also suggest once you're done paying for your teen's braces to start a sinking fund for braces for the twins.  You'll have 4-5 years before expanders are a possibility, and possibly 8-10 if they go straight to braces.  I have 3 kids and I'm planning on continuing to plop money into an orthodontic sinking fund until the last one is in high school since I figure at least 2 of them will need braces.  

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