What Exactly is YNAB and is it worth it?

Naomim · 20 February 2017 at 9:33PM

Frogletina wrote: »

Hi Naomi

The good thing about Ynab is that you log everything you spend, whether cash, or debit cards. All of this money when spent needs to be categorised to a category. Ynab does not encourage any miscellaneous spending.

EG. if I want use the money in my pocket to buy a meal out, some groceries, a cinema ticket, a bus fare - I would check my categories to see if I had enough money in my restaurant, groceries, entertainment and travel categories. If I had enough money in these categories but not in cash, then I might decide to spend using my debit card.

You spend according to the amount of money you have put into each category, and that cannot be more than you physically have in the bank and in cash. Each pay day, you add your income to YNAB and decide what categories you need to put it in - starting with essentials.

If you use credit cards, the way you use them on ynab will depend on whether you pay them in full each month but there are clear instructions on credit cards on line.

frogletina

So how about for someone like me who is in their overdraft and trying to work my way out? Can I still budget even though I don't actually have any cash!

System · 20 February 2017 at 9:37PM

EmmaMicawber wrote: »

You then work out the cost of all the annual bills e.g. house insurance, travel, gifts etc.,divide by 12 to give the monthly cost and give each of these a "pot" that you assign your money to as it comes into your current account.

The big difference is that you assign your income to each category every month so that when the quarterly bill or MOT comes along, you already have the money ready to pay it.

I did that on a spreadsheet in an hour. Implementing the mobile spending would take 10 minutes and you could store the spreadsheet on Google Drive or Onedrive to make it a mobile option.

January2015 · 20 February 2017 at 9:42PM

The difference with YNAB is you only work with money you actually have. Forget about forecasting. Work with what you have and work out exactly what you must pay before the next pay cheque.

Spreadsheets and other banking apps that I've tried have all included forecasting. I can forecast all I want, but will I really stick to it - clearly it didn't work for me. Whereas YNAB only works with money I actually have. It was like a lightbub moment when I started using it and it just works in a way spreadsheets don't. I've managed to save (never have before). I have savings for emergencies, car repairs, holidays, car insurance, council tax - it just seems to sort my financial life out in a way no spreadsheet or financial package has ever done before. I've used MS Money, spreadsheets etc. I still ended up broke, overdrawn, in debt. YNAB works for me (and many, many others). It's a different way of working with your money.

Frogletina · 20 February 2017 at 9:46PM

Naomim wrote: »

So how about for someone like me who is in their overdraft and trying to work my way out? Can I still budget even though I don't actually have any cash!

There is a ynab forum community and a facebook community too. Ynab can work if you are in overdraft and you will get help to set up your budget to include a way to do this.

Personally I don't have any experience with an overdraft so I cannot help you there.

frogletina

Drawingaline · 20 February 2017 at 9:54PM

I love it. For someone who's 'pay'comes in five times a month it works very well. Keeping all the money in one account works way better for me than lots of savings accounts. I have a ridiculous amount of catagories outside of each bill/direct debit, but for the first time ever I have money saved for next Xmas, car maintenance, all the kids activities and even savings goals for the kids.

The app for me is what makes it work so well. I looked at some other free budgeting apps and just couldn't make them work, although YNAB is pretty complicated, having the YouTube videos meant that I could spend a couple of hours really working through it all (but I am ridiculously awful with any kind of tech, the reasons I don't use spreadsheets is because I can't!) But once set up it is much less time consuming.
I signed up for the 34 free days honestly not convinced it would help, but I am now signed up for a year ($40) and have a catagory named YNAB subscription and am saving up for next year's. In five months it has helped me pay off 4k from my debt and save for a holiday. Now I COULD have done this without it, however the app has definitely meant I am much more focused on it.

Hope that was of some help.

copperman05 · 21 February 2017 at 8:28PM

I've also just started using it and now think its one of the most useful and effective pieces of software I've ever used, I've heard many say its a life changer and I think I agree.

You can still use with a overdraft you just budget up to your limit, it'll take a day or two to get your head round it but once youve used it a few times it really is very easy.

Some more useful info here too http://forums.moneysavingexpert.com/showthread.php?t=5603272

Mysteek · 22 February 2017 at 8:44AM

I love spreadsheets but gave YNAB a try when you could buy it for a one off payment, but went back to my spreadsheets. Last year I tried again, but it didn't last long and again went back to my spreadsheets. I prefer spreadsheets as I can change them to suit how I work with my money and I can do this as many times as I like. I don't like that I can't change anything in YNAB but have to work how it is set up. This is just me, I think I have to be in control of everything

I would definitely not pay per month though as presumably once you stop paying you lose the functionality of it (not sure about this??).

Its up to personal preference as I know many people wouldn't do without it

abby1234519 · 22 February 2017 at 11:23AM

I still use classic YNAB, just can't get my head around the new one :O

It's saved my life. I don't know where I'd be without it, well I do.....twice as much in debt and bankrupt!

January2015 · 22 February 2017 at 11:58AM

abby1234519 wrote: »

I still use classic YNAB, just can't get my head around the new one :O

It's saved my life. I don't know where I'd be without it, well I do.....twice as much in debt and bankrupt!

Hi
I've used classic YNAB since 2015 but started trialling the new version (again) last week). I originally looked at it when it came out and, like you, couldn't get my head around it. It just wasn't like the YNAB I knew.

My plan was to run both versions for a month (whilst new YNAB is on a trial plan) and make a decision then. Just one week in and I am completely sold on the new YNAB. I've stopped updating classic YNAB already.

I did watch the training videos for the new YNAB this time rather than assume 'I know what I am doing'. I think it's even better than the original.

EssexHebridean · 22 February 2017 at 1:06PM

I'm another non-YNAB'er - I've looked at it a few times but so far I can't see why I want to pay for something which is (to me, and I stress this is MY opinion, for the way I work) a more complicated of duplicating what I do in "real time" anyway. To explain...

The way we work our finances is lots of little "pots" - effectively it's a real-life, 3-D "envelope system". As offshoots of our current accounts we have assorted savings accounts for all sorts of things. Joint money (everything that isn't our own personal allocated (and budgeted!) personal spending money starts out in the joint account, and I know precisely what bills go out, when, and for how much already. Initially I did this on a spreadsheet - now, after all these years later - I just know. So starting with that figure that has to be allocated - that tells me what is left for savings etc. I also have a set amount that I allocate for diesel, and random household food spends - although those are mostly covered from elsewhere.

At a set date every month, automated transfers set up by us go out of the account to covered budgeted costs like annual car spends, a household contingency fund, holiday, a "fun account" for random joint days out etc, christmas & other presents, and a few other things. There are also a few transfers that go out to savings - regular savers and an ISA, essentially to maximise the interest we get on what we save. There is a sum left for contingency in the joint account - and any surplus from this at the end of the month goes straight to one or other savings account.

We put all spending on a cash-back paying credit card unless it costs us money to do so. when the CC bill comes in we reckon it up and transfer money to pay the bill IN FULL as :money: would say from either our personal accounts, or the assorted "pots".

We work on a "zero>zero" basis on our joint account - ie there is an overdraft facility there but we don't factor it in. The contingency sum left in there each month is designed that if something comes out early, or for a little more than we were expecting, that sum covers it without us going into OD. On my personal account I work with a £100 cushion as "zero" as my OD fees are a little higher so I put that in place for safety. Person spends never come from the joint account - that money is not either of ours to spend individually.

We've been working with this method since around 2008 I think - and for us, and allowing that Nationwide have a good deal of flexibility on accounts etc, it works really well for us. I check the banking regularly - at least every few days - so can quickly pick up on anything out of the ordinary.

Just an alternative view which may give people some food for thought.

What Exactly is YNAB and is it worth it?

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