2nd week on YNAB
On our 2nd week of nYNAB and we are dropping accounts like crazy. 7 checking accounts have been dropped to $0 and all we have to do now is call the bank and close them. We are keeping 2 checking accounts in the budget for the next several months. One is to pay the loans at the same bank the accounts are at, the other is my wife's "business" account. We now have a main checking account at the local credit union where my business account is situated. Also a Money Market account where our reserves (emergency funds, auto maint, house maint, etc) and it earns 3%. Checking is a 0%.
We don't have much green at the moment and don't expect to for another couple of months. 2 months behind on mortgage and loans. Playing catch-up on those for the next 2-5 months. Getting a little aggressive on Emergency Funds. We want 3+ months in there as soon as we can.
We are loving YNAB. Being able to see both the accounts and the budget on the same screen is wonderful!
Okay, this is going to be a little hot pokery and I'm sorry but I hope I misread you. Why do you have emergency funds if you are behind on your mortgage? Take every cent you have saved and send it to the mortgage company in the next five minutes! They can take your house from you! Don't risk homelessness just to feel good about having a savings account!
I am not a big Dave Ramsey fan for lots of reasons, but his 4 walls theory (You tube: https://www.youtube.com/watch?v=3_RX4gT20EM) about what to do when you are behind on your bills is really sound. It is, food, utilities, shelter, transportation, basic clothing. In exactly that order. Eat. Keep the lights on. Keep a roof over your head. Keep your ability to go to work. Make sure you look appropriate for work. Don't pay the electric billl if it means you won't be able to eat. Don't pay the mortgage if you won't be able to pay the electric bill. And so on. But the savings account, debt paydown...all of that comes *after* you have those things squared away.
I'm not particularly prone to hyperbole, but this is an actual big mistake. I beg you, don't do it. Pay the four walls first. It's great you're feeling confident about YNAB and that it is giving you clarity. Now use it to actually put your money where it needs to go first, and worry about the other stuff later.
4 weeks into YNAB now. 2 mortgage payments made this month. 2 health premium payments made this month. We are now officially back to regular payments, plus paying off the late fees on the mortgage for all major areas of our life. Starting next month, we will be upping our debt snowball a couple of hundred dollars. One debt was paid off and we are adding the little extra bit to knock down the next in line.