Ynab

I use YNAB and input my transactions every few days or every week. It actually makes me feel guilty about having that takeaway or taking that taxi as if I exceeded my budget that month for that category it makes me think about my spending.

I've found it useful, confusing at first, but I'm getting grips to using it - 5 months in!

I use YNAB too and it certainly works for me. However, the "direct import" of transactions from bank accounts only really works in America - I think there are one or two banks that it works with in the UK but with most it doesn't. So it does mean entering transactions manually, although you can set up recurring transactions for things like direct debits and standing orders (I think a download option to use .OFX/.QIF files is on the way, which should be a help). However, the idea is that you should enter transactions for things like shopping as you go along using the app (available on Apple and Android devices) and you can check the budget for what you are about to spend using the same app. I can vouch for this actually being a lot easier to manage and follow than doing, say, a monthly or weekly catch-up of your finances.

OK...so the question you're asking yourself is...should I use YNAB? It is worth the hassle? Will it help me?

So, I'm here to tell you that the answer to all three is a resounding HELL YES. I dont work for them, but I am frankly in love with the programme. I've been using YNAB since version 4 and have data back to 2013.

Back then, I was on a good wage (£40K), paying my taxes, supporting my family. I worked hard but you know what, there always seemed to be more month left at the end of the money and I could never work out why. Things rumbled on like this for most of my adult life until one day in May, I was standing in the supermarket watching a belt full of food go through the checkout. It was 3 days after payday and notionally, this was the first transaction against that months' money. My card was declined. Now, that meant that either the card machine was not recognising my debit card, or the bank had cut us off at the knees. The terrifying thing was that at that point, I have an overdraft of £2500. If they had cut us off, that meant that not only had my entire months wages been swallowed whole, but that we were so far beyond the authorised overdraft that god himself couldnt find us with a telescope. On top of that, I had bills, one of the kids was badly in need of new shoes which couldnt wait, it would all have to go on the credit card, again, since that was the third time since January we had busted the overdraft.

Flushing with shame, I handed over the credit card, muttered about something being wrong with the debit card chip and swore that when I got home I was going to do something about it. I knew about YNAB, I had seen it demonstrated and like most people, thought it was a load of hassle and besides, I was perfectly capable of running my household with a finger in the air and a hope in my heart. The thing was, standing there in Tesco with £130 worth of food I couldnt pay for except by borrowing, I clearly wasnt doing such a good job of it. I went home, fired up the laptop, installed YNAB and set to work.

I downloaded OFX files from the bank (which is how you reconcile against what you think you spent) and I set it up. It took months before we started to see improvement, but every month we were definately edging towards the light. I religiously kept my accounts every week. I didnt spent what I had not budgeted and I stopped borrowing. I opened a brand new bank account with zero overdraft and I moved everything over. I mentally assigned the existing OD to 'pre YNAB debt' and promptly stopped worrying about it. When my next pay packet came in, it went to the clean new account ready to be spent according to my budget, and only the budget. Pre-YNAB debt was then paid down like any other bill. Since that day, we have never looked back. I have just come back off maternity leave, which I paid for (my employer wouldnt pay me). I have more money than ever in the bank and last month, could just walk into BHS and buy more than £1000 worth of household things I have had my eye on. Last week, we dropped £250 on dentist fees without blinking. I could do this because I had well funded budget pots and it is all down to YNAB. Really, the old saying "take care of the pennies and the pounds will take care of themselves" is absolutely true and YNAB is how you do that.

So, yes, you need a budget.

Meanwhile, I know the online version of YNAB looks a little strange, but just forget the symbol. It doesnt matter whether it is pounds or dollars. Your only concern is whether you have enough tokens to cover your obligations or not. My opinion is that the 'classic' YNAB is far better which is a stand-alone desktop application. You can go ahead and download that here : http://classic.youneedabudget.com/download/ynab4

if you choose to pay for it, there is a sliding tarrif which means that if you pay for YNAB4 this month and decide in a few months to cut over to YNAB5Online, then you dont pay the same amount since you already effectively paid in advance. You can still use YNAB4 for 34 days for free, so plenty of time to try it out and get to grips with the principles.

FireWyrm - your post above sounds so much like our story and I totally agree YNAB is life changing providing you really embrace the principles and work with it. I recommend it to everyone. The 'savings' we made by managing our money properly meant the program had paid for itself within the first month, and we really are able to save those pots of money for things like car insurance, repairs and maintenance of cars/white goods etc. This year is the first year EVER that we will be paying car insurance in one lump sum rather than a monthly finance agreement (and this whilst being on our DMP) - that's just one of examples of the change this programme has made for us.

Also agree - I prefer the Classic YNAB4 and am sticking with that version.

TrushTush wrote: »

I have to be completely honest here and say I haven't been using it. It just seemed like such a huge task to sit and put all my transactions in it and I didn't really understand the interface. I have an app on my phone that I paid 79p for a few years ago that does the same kind of thing so I may fill that in again.

I feel a bit disappointed that I can't 'get' it, as so many rave about it, but it will be a total waste of money if I don't use it.

I really appreciate all the help. Sorry it wasn't a success for me

I STRONGLY recommend watching all the video/webinar trainings that YNAB provide because that helps hugely with understanding how it works. There isn't another budgeting tool like it. Most of them help you record historical spending and where you money has gone, but none I'd come across before actually help you create a budget you can live by, stick to and actually plan for the irregular expenses most of us forget to plan for.

I started worked for myself last year and as a single parent was terrified about how I would cope financially. YNAB has been the single biggest thing that has helped me get in control of my finances, stay in control, and be hyper aware of what I'm spending and also become aware of the fact that if I over spend in one category it has to come out of another.

I just want the new YNAB to be able to auto upload UK bank transactions and then I'll upgrade to that. Also would love the app Digit to come to the UK too (has anyone checked that out!) it's an amazing savings tool that intelligently analyses your account, knows when you can spare a little cash, and slowly siphons away money into a savings account little by little, even like £2 at a time to gradually build up a little, or big, nest egg. Some Yanks I know in a finance Facebook group swear by it - one has saved $5000 in a year without even trying!