How do I know how much money I have for debt payoff

I need help guys because this budgeting is different from Everydollar.

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  • You need categories for your debt payoff. As you have extra money you will budget to those categories. 

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  • Hi Josiah !

    YNAB has a few tools you can use to manage and pay down debt, but as far as budgeting goes, the YNAB Method still applies even if you're working to pay down debt. By giving every dollar a job and making your spending decisions based on the budget, you can make sure your needs are met and set money aside to pay down the debt. 😁

    When you have a moment, take a look at these links:

    • Deal with Your Debt Guide - This guide outlines a way to approach your debt and make a debt management plan. The key is to budget enough for expenses as you go, so that you don't go into more debt later.
    • Tracking Loans - If you have a loan that you'd like to pay off, you can track that loan and your payments in YNAB!
    • Credit Card Debt - This Help Doc discusses how to deal with Credit Card Debt in YNAB
    • Create a Debt Paydown Plan Workshop - Attending a workshop gives you the chance to ask questions live! They’re typically offered many times throughout the week but, if you just can’t fit one into your schedule, we do have our workshop intros recorded as well.
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  • Categories represent your priorities. Fit contributions toward debt reduction in with all the other demands on your money.

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  • How is it different than Everydollar? I didn't use it but I was doing Dave Ramsey Gazelle Budget before.  The principles are similar with the main difference being that with YNAB you budget only money you actually have vs DR plan the month before the month begins. 

    As others have stated, you have categories to represent the amount you are directing to debt repayment (these would be set up automatically by YNAB when you added the debt account).  If you are talking about "extra" money then once you have budgeted all your money to living and True Expenses, if there is an amount left in TBB you can then decide to throw that at the debt so you budget the debt repayment category with the remaining amount.  If you mean at the end of the month, some people "sweep" or clear out all their remaining available amounts (except ones like Christmas and other true expenses). You can set all the categories to 0 available and the amount in TBB will be what is left for debt repayment.

    as Faness said, there are great live workshops to help you out. I highly recommend them. They are free.

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    • I think the biggest difference is that, by default, the only category that rolls over every month is your emergency fund. You're starting off with a clean slate each month for everything else. So anything you don't spend during that month is ready to go towards debt. There's very little mention of saving for things after you have your $1000 emergency fund (Christmas is the one they talk about usually).

      I'll throw my vote in for taking in all the classes and videos you can on YNAB. This helped me a ton in identifying how it differs from EveryDollar, and to wrap my head around the rules.

      As for figuring out your snowball, I think once you have your budget set up, including funding your true expenses, you'll then have a good idea of how much money each month you have left over. At that point you can decide if you want to throw all of that into your snowball or if you want to get a month ahead first.

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