"Give every dollar a job"

Ok new to this coming from MoneyDance where I used to budget yearly but was paid on a month basis, now new job and im paid weekly, I think I have worked out how to do this weekly but this concept of every $1 has a job? I am currently paid up bill wise and have about $300 sitting on the top "To be budgeted", do I just leave that sitting there to roll over or what?

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  • Also another twist to this, I work on a job where I do 182 hours in two weeks, then get two weeks off 2/2 roster so as you can guess spending while at work is very low, spending while home can be high... makes any difference?

      • Ducky
      • Violet_Lobster
      • 2 yrs ago
      • Reported - view

      Coopznz Not really.  The idea behind the way YNAB works is:

      1. Figure out how much you need when.

      2. Put them in the order of importance.

      3. Fill out each category ("envelope") until they cover your expenses as your income rolls in.

  • Welcome to ynab. If I understand you correctly, you have your bills covered, now what to do with the extra $300. What you want to do is create categories for your true expenses, and budget money to that area. True expenses might be your car insurance bill, DMV registration, a holiday fund for the end of the year. If possible also have an Emergency Fund that you add money to. Use the Goal setting feature to budget for your true expenses. For example, I need to pay my DMV in September, so I have goal set up to pay it by that month, and YNAB tells me how much money I need to budget to that account each month to be ready to pay that bill. 

    Since you get paid weekly, it would be great if you can eventually buffer an entire month for your expenses. That means you budget for all of your next month's expenses using extra money you have. That way you're always a month ahead and you don't have  to wait week to week for your check to budget your expenses. So get the current month budgeted, then when you have enough extra money,  cover the following month, or do it as you get paid from week to week. If you can't buffer a whole month right now, don't worry about it. The money will come eventually. Let me know if that makes sense. 

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  • With your question, I have to ask, have you checked out the YNAB method?  In this program, you give every dollar job, even if that job is to wait until next month, or later.  

    When I came to YNAB my finances were a mess, I was having a hard time staying out of credit card debt, had very little in the bank.  and was wondering if bankruptcy could help.  I liked what I saw, then read, attended classes, listened to, and watched everything I could find about how to work the budget the way YNAB suggests.  Today, about 2.5 years into it, my finances are no longer a mess.  I pay my bills on time and my credit score reflects that.  I have money put aside for all my annual expense and have some long term goals I currently fund, my bank balance is larger than I thought possible.  

    In other words, I would recommend you learn the YNAB method.  You might find it doesn't work for you (I would be surprised if this happened) or you might find it beyond value, as I have.  

  • Hi Coopznz !

    I'm not familiar with MoneyDance, but it sounds like you've had a major shift with not only income but with approach.

    You’ll want to start YNAB with the money you have on hand today – and prioritize those dollars. Here's a short video that goes over things. Once your bills are covered, you'll want to start thinking ahead - budgeting for monthly expenses, semi-annual expenses, savings and any other expenses that can pop up (such as Auto Maintenance, Home Maintenance, etc).

    When you have a moment, read our How To Create a Budget Template blog post or take a look at the Set Up Your Budget Workshop. Both will teach you how to use scheduled transactions and goals to outline priorities and plan for those expenses! :)

      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 2 yrs ago
      • 2
      • Reported - view

      Faness Moneydance is a general personal finance program like quicken. And like all those personal finance programs, the budgeting module is an afterthought where you just set how much you want to spend in a given time period and it monitors it for you and sends warnings. The amount you set is not governed by the money you actually have on hand, so it's rather useless.

      Like 2
    • nolesrule Thanks for the quick lesson there! I was fortunate enough that YNAB was my first budgeting software. I took a look at other popular options but, for reasons I'm sure I don't have to list, they didn't quite make the cut. ;)

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