You need a budget (YNAB) advice thread

Frogletina

Red-Squirrel wrote: »

I started on the 20th of Feb, overdrawn, after getting an unexpectedly huge bill that pushed me to have a go at YNAB in hopes of avoiding nasty shocks in future. I didn't get paid till yesterday, but it doesn't really matter when you start. I just budgeted for everything that I knew needed to be paid by the end of Feb, knowing that my salary would come in to cover it.

I'm new to Ynab, but my understanding is that you should not budget in advance of your income. I would get confused if I budgeted with money before it came in as it would be impossible to reconcile the accounts.

frogletina

Frogletina

redmel1621 wrote: »

Hi.

I have just downloaded this software and have been watching the videos on how to use it. I really like the look of it, although it looks quite complicated initially, I think I am going to get on with it really well.

I am living in my £500 overdraft and have been for many years so here's hoping this method of budgeting can get me out of that rut!

I have a question though> On the side panel where you put the name of the bill and hte amount and date (well that is what I am putting lol) I am fine with all of my monthly DD's, they are easy to write down and I know to allocate money to them as and when they are next in line..

How am I best to sort my weekly outgoings? For example I get tax credits weekly and this basically covers our petrol, food, electric meter, kids clubs and pet food. Should I put a monthly figure and just 'add' to the budget column each week so it effectively builds towards that monthly amount.. Or would I put a weekly figure and then allocate that exact amount weekly?

I hope my question makes sense.

I am only just setting it up with my categories etc...

In fact I think by asking the question I realise the answer... It is looking likely that writing my total expected monthly spend is the best way forward. I would then allocate more money to that category each time I get my tax credit payment. So (as a rough guide) Food, £400 monthly amount, then add £100 weekly... it would then accumulate to match the £400 by the end of the month...

I was just about to reply when I noticed you had edited your message. You have decided on a solution which makes perfect sense for weekly income - it will act as a reminder but you are not adding it to the budget until you are paid.

My income is monthly, so I have £400 allocated to cash spending and each week I transfer £100 to cash every Monday. Most of my food spending is by cash unless my debit card has a cash back offer on which I want to use.

I will need to allow for the fact that for 4 months I will need to find an extra £100 to budget as I will need £500 those months.

You can adjust your monthly budget to £500 on those months, but as you have money coming in weekly you will have no extra money to find.

I'm sure that you will see a way to reduce your overdraft once you see the figures on Ynab. £500 is £1.37 less spending a day, and once cleared, if you have any overdraft fees, these will no longer be charged.

frogletina

redmel1621

Thank you. The very act of writing out the question helped me to understand the solution lol.

I downloaded this software but was quite sceptical if I'm honest. I suppose the test will be actually using it.

andyfromotley

Hi red,

Yes it does seem overwhelming at first, but if you just do and take the getting started classes that will give you plenty to get on with. Knowledge just seems to build up as you go. Hope it works for you.

I think my own personal golden rule is that i don't do anything that would give a False number in the category balance field. That is absolutely the most important set of numbers on there for me. So when fiddling and learning i always think 'has this left a category balance that i don't actually have in cash in my current account?'

redmel1621

How do people get on with getting their partners on board? lol.
My husband is very much a 'balance checker' and will spend if there is money in the bank. He does usually check with me to see if anything is due out but isn't great at leaving, what he perceives to be spare, money alone.

I'm not saying I am perfect either. If I was then I wouldn't be in debt and living in my overdraft.

It is a joint account and we only have the one bank/account between us.

splodgethefirst

redmel1621 wrote: »

It is a joint account and we only have the one bank/account between us.

Get him a spending money account - basic, with your own, or another bank

Frogletina

It's the little amounts for me that seem to cause a problem.

I had a problem with £2.04 which although wasn't shown as budgeted on my account, did show in the balance on the final column. I could not find a way to move it.

All my accounts had reconciled ok.

I thought I could amend the budgeted column but I ended up with a -2.04 there and I wanted both to show nil. I ended up going back to my February budget and amending it there. I'm sure there is another way, but I couldn't find it.

frogletina

andyfromotley

redmel1621 wrote: »

My husband is very much a 'balance checker' and will spend if there is money in the bank..

This is precisely how i acquired £20k plus of debt. It makes me feel ill just writing it.

Frogletina

redmel1621 wrote: »

How do people get on with getting their partners on board? lol.
My husband is very much a 'balance checker' and will spend if there is money in the bank. He does usually check with me to see if anything is due out but isn't great at leaving, what he perceives to be spare, money alone.

I'm not saying I am perfect either. If I was then I wouldn't be in debt and living in my overdraft.

It is a joint account and we only have the one bank/account between us.

splodgethefirst wrote: »

Get him a spending money account - basic, with your own, or another bank

I agree with this. When I was with my partner we had an account each for our personal money and a joint one for bills. It worked well because he frittered all of his money away, and was constantly in overdraft, where as I saved most of mine (we did have about the same amount of income each coming in)

I took charge of the joint account and as his money was transferred into it as soon as he was paid, there was never any shortfall and all the bills were paid on time.

He would never have wanted to use Ynab had it been around then, but I think it would have helped him to rein in his spending.

If he doesn't want to get another bank account, would he agree to an allowance shown on Ynab and agree not to go over that amount?

frogletina

redmel1621

splodgethefirst wrote: »

Get him a spending money account - basic, with your own, or another bank

And then transfer a set amount across do you mean? I'm not sure we can actually afford to do that yet. I would prefer him to look at YNAB and realise we have no spare money I am hoping our circs improve this year and we can afford some 'spending money' each *dreams*

andyfromotley wrote: »

This is precisely how i acquired £20k plus of debt. It makes me feel ill just writing it.

Thankfully we aren't owing those sort of figures... been there done that. We were in well over 10k debt and ended up out of work and were forced to sell our house before it was repossessed. We managed to pretty much pay all the debt off with the proceeds of the sale and are doomed to a life of private renting.

We have managed 9yrs with pretty much no credit but in the last year or so have built up £500 on a credit card and £1800 on a catalogue (£800 paid off) but I want to put a stop to it NOW before it turns into the slippery slope of doom... Plus we both have some student loan overpayments that we are repaying (around £2000 between us) thankfully they are being paid off at £10pm each, easily manageable payments.

I am still very much daunted by YNAB and it seems to require a fair bit of work setting it up.... Fingers crossed it is worth it