Money Management

YNAB is a Great Program
to Create a Budget With

YNAB is a simple budgeting program that I like to recommend to people. It makes it easy to create a budget and then stick to it.

Not only is it easy to use software, YNAB also teaches you their methodology to budgeting that works for so many people. You can download the full program (so none of your sensitive data is online - it is housed on your desktop or laptop) and take advantage of the 7 day free trial.

It is a great program to use when you are first starting your money management plan - it is basic and easy to use. At the click of a mouse you can see where you have spent your money and where you can spend your money over the month.

Basics of the Your Need a Budget System

YNAB works on the basis of 4 rules. To learn more about each rule, check out the FREE videos in the right hand column or click on the button below each rule.

Rule One: Stop Living Paycheck to Paycheck - Live on Last Month's Income

The methodology starts with setting up your budget where you can spend what you earned last month this month. This gives you a great buffer as you know how much money you have to spend and save each month.

Rule Two: Give Every Dollar a Job

Next you assign your dollars (from your previous month) to each category, or a "job". You can use the standard categories or create your own. Assigning each dollar helps you cut out the wasteful spending and you can see easily where you have "extra" money to spend or save.

Rule Three: Save for a Rainy Day

Set aside a certain amount for large purchases that will be spent during the year. For example - Holiday season - you know you want to spend $1200.So you now assign $100 a month to Holiday Spending in December. When the holidays arrive, you will have the amount you planned for.

Rule Four: Roll With the Punches

If you overspend in a month (because it will happen from time to time) the program takes it out of your next months budget. This stops you from overspending month after month. You make the mistake and the program shows you and allows you to correct it easily.

Why I Like the YNAB System

I found it simple and easy to use. It was easy to set up - not a lot of flashy complicated options when using it.
You will look at where you are spending your money and you think about how to spend your money on things that you care about.
Provides useful reports so you can see where you spent your money, or how much money you have saved.
You can use the main categories and easily add your own categories.
You get a free 7 day trial so you can really figure out if it will work for you.
You can import your transactions from your credit card company or your bank.
Your information is safe as you download the software and keep your data locally.
They are coming out with a Mac version soon.