You need a budget (YNAB) advice thread

MoneyMission2015

lilahloo wrote: »

I have just found the time to download the free trial and am setting up my budget.

I run two current accounts. My salary is paid in to one and I transfer an amount each month to another account that I use for fuel and groceries. All my direct debits come out of the first account.

Do I need to set up two accounts on ynab so it reflects the ins and outs of my current accounts?

Yes you will need to add both accounts so that you can reconcile the transactions when they go in & out of each account.

lilahloo

Thanks moneymission.

I've signed up for a workshop webinar but couldn't wait!

DD265

FireWyrm wrote: »

What was this £1000 for exactly?

Just a random figure. Once I started thinking about it, I couldn't actually come up with a scenario where it wouldn't be beneficial to continue budgeting into that pot. However I decided that if I had built up what I thought was enough, I could always reduce the amount paying over if I felt I needed the additional money elsewhere.

I used the reports for the first time this weekend. Brilliant and wish I had gotten YNAB sooner so I could've gone back further!

FireWyrm

DD265 wrote: »

Once I started thinking about it, I couldn't actually come up with a scenario where it wouldn't be beneficial to continue budgeting into that pot.

And this is of course highlights the great fallacy of our age, that you have and will continue to have an income no matter what. The truth is, when we speak about 'spare money', in most cases and scenarios, there really is no such thing. There are so many other projections where money would be required that the concept of 'spare money' in the accepted sense is just plain silly. What YNAB helps you do is begin to utilise your money in the most efficient way at every turn. Sure, in the short term, you might feel that possessing the latest Iphone trumps the more mundane stuff like paying into a dental fund, but if one does that often, the dental fund simply fails to materialise and then we bemoan the fact when we have a bike accident that knocks out two front teeth and we need £1000 to repair the damage. We suddenly end up scrabbling for the cash, or more honestly, reaching for the credit card. The concept that we all have money for 'emergencies' sitting in our wallets in the form of little plastic cards is another great fallacy of our society. As people discovered when the economic downturn hit, those sources of credit we had come to expect always to exist had simply disappeared and there was no Plan B to speak of. YNAB is about insurance more than anything. Sure, it helps you plan right now, but that is merely a means to an end. We plan now so that we can deal with emergencies as they happen. Those reading my other thread will have seen that I had originally an MOT fund of £285 expecting that this would be enough. In reality, I have spend over £900 on this tranche of vehicle MOTs and so my projections and plans were woefully inadequate. That's OK at the moment, I've only been using YNAB for a year and there is only so much one can achieve in a year, but going forwards, the scenario I experienced will not happen again and if it does, I have learned and there will be enough cash to cover it. That is all down to YNAB.

DD265 wrote: »

However I decided that if I had built up what I thought was enough, I could always reduce the amount paying over if I felt I needed the additional money elsewhere.

Of course, but you must be sure that the gain outweighs the risk. Does the possession of the latest gadget negate the risk of a large MOT bill? Probably not if you are honest and this is what YNAB is all about. It is about assessing risk and making plans accordingly. My original scenario of 'tornado v roof' is probably unlikely in this country, but would be an utter necessity in some parts of the USA. Having said that, the UK does experience over 300 tornados a year, most of them certainly big enough to rip a few slates off. The biggest threat most of us are likely to experience is job loss. This fund, in my opinion, ought to be a priority since it is an oft mentioned truism that government hand-outs are barely adequate to feed yourself. The risk of NOT finding a new job within 1 month is probably pretty high, by two months, it drops and by three, as long as you are able bodied, it is probably non-existant - therefore, 3 months gross salary is required in that category. Sure, you could be incapacitated in an accident, in which case, the paltry 3 months salary wont last long - but in that case, you will of course have made a plan C to cope with it in the form of some sort of insurance, but that requires yet more money and most likely, the Iphone 'cost' could have made a significant contribution to that. You see what I mean about 'no spare money'?

There is only so much we can do of course, but so many people are not even making a basic provision for the most obvious scenarios they are likely to face in their lifetime. Those of us who budget seriously by whatever method can congratulate ourselves that we are doing the best we can for our future selves.

DD265 wrote: »

Brilliant and wish I had gotten YNAB sooner so I could've gone back further!

YNAB reports after a year are pretty illuminating as well as frustrating and sad. How much further along could I have been if I had followed the sage advice of my elders right back at the beginning and saves my first months' wages before touching the next?

Nix143

Hi guys

Been doing the trial and am about to buy - does anyone have a reference code? Could you PM me if you do.

Cheers ears

andyfromotley

Hi nix,

i don't have a ref code but,

1. If you are a student you can get it free.
2. It seems to be cheaper via Steam than off Ynab direct. (£30 -v- £40)

oh and upthread someone had a 10% off code i think.

MoneyMission2015

I will be buying this week & when I had a look Steam were the cheapest so I will be purchasing through there.

Carrot

Hi Nix,

My 10% off code is - reposted on Referrals Board

But have you done the online classes yet? I won my copy of YNAB in a live Webinar.

Saying that, even after just 2 weeks of using it I would now recommend it to everyone even at full price.

katejo

Nix143 wrote: »

Hi guys

Been doing the trial and am about to buy - does anyone have a reference code? Could you PM me if you do.

Cheers ears

Has anyone given you a code? I could send you one later today when I get home

Ignore that as I can now see that someone has given you one! It is worth paying. I had no debts when I started but the monthly income goes further.

Red-Squirrel_2

Nix143 wrote: »

Hi guys

Been doing the trial and am about to buy - does anyone have a reference code? Could you PM me if you do.

Cheers ears

Here's a code for 10% off, check the other options though, it might not be the cheapest!

http://ynab.refr.cc/GZZ4S79