Budgeting doesn’t have to suck

You need a budget!

Yes you! Don’t tell me that you don’t. We all need one, whether we like it or not. Fortunately, there’s You Need a Budget that will make it much less painful than other methods you may have tried.

This post is based on a podcast from The Art of Manliness which features an interview with the developer of You Need a Budget.

You Need a Budget is based on 4 simple rules:

1. Give every dollar a job
2. Embrace your true expenses
3. Be flexible
4. Age your money

Give every dollar a job:

Look at the current balance of your checking account and assign each dollar to an expense…rent or mortgage, utilities, etc. Don’t forecast and say “Well. I’ll get paid again in 2 weeks, so I can actually spend a little extra”. NO! Don’t do it! Bad! Bad! Work only with what you have at the moment…not a penny more.

Embrace your true expenses:

Not all of our bills are paid monthly. We may pay our auto insurance every six months, we pay our vehicle registration once a year, we need new tires every several years, holidays and birthdays come up all throughout the year…don’t forget to allow for these expenses on a monthly basis.

Be flexible:

Your budget is a living thing. You’ll need to make adjustments all the time. Don’t feel like you’re locked into something you said a year ago, a month ago or even last week.

Age your money:

The money that you earn on this paycheck shouldn’t be spent for at least 30 days…so you’ll need to get to the point that you have a month’s worth of cash in your checking account.

Even though you don’t need to use the app, it’ll make it that much simpler if you use the app.

For even more information on the YNAB system, you can get the new book.

Interesting days

Today - Look For An Evergreen Day and Oatmeal Muffin Day

Tomorrow - Sangria Day, Go Caroling Day and Games Day

Next Tuesday - Thank You Note Day and Candy Cane Day

January 19 - Popcorn Day and Tin Can Day