New to YNAB & needing advice
Hello there! So I could use some help. I’m new to YNAB and while I understand the basics of how to use it, I’m currently stuck in the cycle of using cash advance apps like earnin. Is there any good advice on how to get off of them? Is it better to go cold turkey or to slowly trickle off? Any help on the subject matter would be greatly appreciated!
Hello, Beige Boat , and welcome to YNAB!
YNAB is all about breaking the paycheck-to-paycheck cycle by prioritizing the dollars you have now.
However, that doesn't mean either cold turkey or tapering off paycheck-advance apps is automatically the right way to go. What you're describing is similar to the credit card float: living on money than you haven't actually received yet.
So if you can go cold-turkey, go for it! However, that's likely to be very difficult if you're floating, say, two weeks of pay. So if you want to taper off, I'd make a note of how much you're borrowing, and see if you can reduce that amount each pay cycle until you no longer have to borrow anything to make it to the next paycheck.
And please keep us posted!
To get off the loan cycle I found it helpful to order my ynab categories and sub-categories in order of importance, top to bottom. That way I knew which categories to fund with the money I had now, while trying not to spend on other stuff for a while. Rent and utilities went at the top, and surprisingly a lot of things I thought were important like certain streaming/app subscriptions, Uber/Lyft, and haircuts started to fall toward the bottom.
My wife and I went cold turkey with YNAB a long time ago. It may have been 2009! The biggest thing for me was going from expense tracking to true budgeting.we cut back a lot early on to get our buffer and have been successful in paying off debts while also saving for priorities. YNAB is different and requires a change in thinking which I believe is best achieved by going in head first. Watching your net worth change as you go is very rewarding. Years from now you will look back and say using YNAB was one of the best decisions you ever made