So bad at managing money, please give me some advice.

Naomim

Willing2Learn wrote: »

I vote for YNAB. I have been using their software with success since 2012. It helped me to turn me life around (financially), as I was always useless at budgeting before YNAB and was continuously in debt. I now have savings and a six-month emergency buffer fund!!

Sorry for hijacking this post but a quick question. How did you find YNAB working when you were in debt? I had it but just couldn't work round the whole debt thing.

Thanks

NaomiM

[Deleted User]

Naomim wrote: »

Sorry for hijacking this post but a quick question. How did you find YNAB working when you were in debt? I had it but just couldn't work round the whole debt thing.

Thanks

NaomiM

Well it doesn't look as if the OP is going to come back anyway. What are struggling with using YNAB and entering your debt? I have all my accounts on YNAB. What kind of debt do you have? Loans? Credit cards? a combination of both? Have you watched any of the YNAB tutorials?

DD265

Naomim wrote: »

Sorry for hijacking this post but a quick question. How did you find YNAB working when you were in debt? I had it but just couldn't work round the whole debt thing.

Thanks

NaomiM

For me, I just have each debt set up as separate accounts (two credit cards and money we owe a family member) then budget payments to those accounts. The payments basically work as transfers within their respective categories. YNAB handles the credit card payments automatically when the transfer is input, then the family loan is off budget so that the transfer counts as spending the money.

If you're using YNAB and creating new/adding to existing debt, the budget starts to get a bit more complicated, so it's an incentive not to.

tlc678910

I have my credit cards as "off budget" accounts in YNAB (I have the old YNAB classic so I'm not sure if the subscription one is exactly the same in this respect).

Having the accounts "off budget" means I can record and track the credit card transactions and the effect on the balances without it affecting my budgeting/working balance and putting the whole budget into a big minus.

pennystretcher

I don't think I'm the only one in MSE who gets worried when someone posts about their debt looking for help and then we never hear from them again? So please, keep us posted even if it is just to say you are OK and have decided to do X and won't need MSE forumnites again.

monetxchange

It is worrying. At least this poster had some savings and wiggle room on how to go forward. The ones that worry me are the ones in dire straits and about to take out an awful consolidation loan or are in a panic about having no way out. At least they tend to show up again after an absence, though sadly usually with more debt.

Having your true lightbulb moment can be a long process. Certainly was for me. I just hope that these posters are also close.

tempus_fugit

tlc678910 wrote: »

I have my credit cards as "off budget" accounts in YNAB (I have the old YNAB classic so I'm not sure if the subscription one is exactly the same in this respect).

Having the accounts "off budget" means I can record and track the credit card transactions and the effect on the balances without it affecting my budgeting/working balance and putting the whole budget into a big minus.

IMO, that’s the main reason NOT to have your CC’s off budget. It’s essential to include CC payments as depleting the budget immediately as otherwise it doesn’t show you the full impact of doing so, and you get a false picture of your finances. As Jesse Mecham (YNAB’s creator) says even though the money (to pay the CC debt) is still in your bank account, it’s effectively been spent once you spend it on the card so it needs to be correctly allocated for paying it off in the future.

Naomim

I have overdraft and credit card debts. I like the principle of giving every penny a job and have taken this using monzo pots for all my cash not tied into direct debits. Early days but positive it will help.

MovingForwards

My bank has just updated it's app and each payment / bill can get allocated to a pot.

OP, if you are reading, or even just digesting since posting, do come back and we can help.