It finally clicked! I'm a YNAB convert.
Hi all, I'm self-employed. I've gotten into debt overtime because, while I know I've got enough money in my bank account to take me into the future, I never know just how far into the future it'd get me. So, if I had to pay for something, I'd often use a credit card, wait until I paid my bills from my bank, and then paid a random "comfortable" amount toward my card based on what was left in my bank account.
It was all very disorganized and led to me racking up CC debt.
A week ago, I had a sum of money in my checking account and I had no idea how long it would last me. I get paid at random times and in random amounts because I'm self-employed so, sure, I can mentally deduct $1,875 for my rent and X, Y, and Z for other top-of-mind expenses, but it still left me with uncertainty.
I've tried about every budgeting app under the sun and always fail because I feel they didn't work well with my varying pay schedule. I was about to give up on YNAB, too, but I thought I must be doing something wrong because so many people love the app.
So, I watched the "how to budget on any pay cycle" video and, first off, Hannah is so much fun. Secondly, IT FINALLY CLICKED... I don't know why I didn't get it, I don't generally think of myself as slow, but the whole "budget with the money you have now, not with the money you expect to have" approach just makes so much darn sense.
I've been working out my budget for a few days now and keep remembering all the random expenses that will come up 3-6 months from now. The kind of expenses I'd normally say, "Oh I probably have enough to cover it, but just in case, I'll stick it on a CC in the meantime..." -- The kind of expenses that I'm now saving for!
My revelations so far...
- I'm not supposed to be looking at my bank account balance. YNAB is what I should reference before making a purchase.
- My savings can all go into one bank account. I used to get frustrated because I wanted to save for multiple goals, but it was all lumped into one savings account -- now I don't care because YNAB shows me exactly where my savings should go. Bonus: I've put over $2,500 away so far thanks to YNAB empowering me to plan things!
- I don't have to add my debt. I first added my CC balances (which I'm only paying off and no longer using) as CC accounts and they subtracted from the "budget" column. Someone on here kindly told me I could add them as "tracked" liability accounts instead, so that's what I've done!
Thank you all so much for patiently answering my silly questions earlier this week while I finally watched the videos that are essential to YNAB and came to understand the four rules. This is a game-changer for me!
P.S. My mom tried YNAB years ago when they had the desktop app and she said she didn't like it because I guess it perpetually displayed recurring bills in a list format? Now that I get how it works, I will so be sharing it with her.
Pineapple Gal I love that it clicked for you when you watched Heard It From Hannah. So much of how YNAB works really clicked for me in watching Hannah's videos too, so I get that! Excellent revelations––keep it up! 🎉
Yayyyyyyy! 🎉 I'm celebrating you BIG TIME! This weekend, I showed my niece how to set up a YNAB budget and you've inspired me to share Hannah's videos with her. They were central to my experience of "getting" YNAB, too. 😄
Thanks for capturing your "ah has", too! Especially the simplicity this is offering you. Yayyayay!