Make sure the speakers on your computer are turned up so you can hear my voice once we begin You...

Make sure the speakers on your computerare turned up so you can hear my voice once we begin

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You don’t need to call in, you can just listen through your computer.

Important Info

Intro to YNAB 3Intro to YNAB 3

Learn the YNAB Way

Overview: What is a budget? How is YNAB different?

Common Budgeting Myths & 4 Rules of Cash Flow

Step by Step Demonstration of how to start your first budget

What we will cover

What does the word budget mean to you?

A PLAN for your money

What is a budget?

Remove yourself from the financial edge

Understand what you can really afford

Lower your stress level about money

Why Budget?

YNAB is different - You’ll gain control of your money with simple, beautiful software that’s a joy to use

In YNAB, everything’s built around the budget

And on a tested methodology that will make sure you are successful

Why YNAB?

Presentation Outline




Let’s look at some common budgeting

Myths

But I can’t budget!

If budgeting is so great, why don’t

people do it?

“It’s impossible to know what to budget for”

Solution...

Myth 1

Give Every Dollar a Job

Rule One

The first step:

Decide on Job Descriptions.

We call those

Spending Categories

Spending Categories

YNAB comes pre-loaded with some pre-set categories...

Master Categories are bold

Sub-Categories are underneath

...but you can make your own to fit your needs

Spending Categories

Spending Categories

I’ve now given every dollar a job!

Spending Categories

However...I haven’t given every job a dollar...

Spending Categories

One of our goals is to get you out of that paycheck to

paycheck cycle.

We’ll get to that in a little bit.

When you are first starting out you’ll need to budget each

paycheck as it arrives, prioritizing as you go.

You will keep track of

three things:

As each month goes along...

How much you budgeted

How much you spent How much you

have left

Not all categories are the same…

Multiple times each month

Once a month

EntertainmentGas

Groceries

What else?

RentUtility bills

What else?

Let’s take groceriesas an example.

Let’s say at the beginning of the monthyou budget $300 toward groceries.


On the 5th, you go shopping and spend $175.

You enter the transaction in your register, and the budget is updated automatically.

YNAB keeps track of the category balance for you.



You go shopping again on the 23rd and spend $95 more...



You make one more small trip...and the category iszeroed out

Here’s the difference:

Spending decisions are made by focusing on the

Category Balance.

Here’s the difference:

...instead of theBank Balance

X

Think about it...

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Think about it...

You need a better tool to use against that than just a Bank Balance!

X

Let’s do a quick poll

“There are too many unexpected things that come up that you just can’t budget for.”

Solution...

Myth 2

Save for a Rainy Day

Rule Two

PredictableWe know when it will rain, because it was forecast.

Car Insurance, Property Taxes, Car Registration

Types of Rainy Days

It’s April now, and you have a car insurance payment

due in June.

This rain is forecast.

Let’s take car insurance as an example

Let’s say the bill will be for $600, and it’s due in 3 months

Unpredictable

We don’t know when it will rain, but we know for sure that it will.

Car Repairs, Medical Bills, Home Repairs

Types of Rainy Days

Another Example

“I keep overspending my budget – and that shows that budgets don’t work”

Solution...

Myth 3

BANG BANG HEAD HEAD HEREHERE

Rule Three

Roll with the Punches

Let’s use an example

You budgeted $25 into your gift category for November...

...but forgot a friend’s birthday.


Your friend has very expensive tastes…

...and you overspent your Gifts Category by $50.


Here’s the key point:

You overspent your Gifts Category by $50

You didn’t overdraft at the bank, you just spent more than you planned in this ONE category.

Whether your overspending was a mistake, an accident, or a choice, YNAB helps you make an adjustment to start the next month fresh.

Remember...

Let’s take a look at how it works

YNAB automatically adjusts before you begin the next month

Result: It keeps you on your budgeting feet, so when you fail, you don’t quit.

You start each month with a clean slate–a huge psychological boost.

Cash flow is no longer an issue.

You are just “borrowing”

from yourself.

In other words...

“I can barely make it from paycheck to paycheck - having a monthly budget will

never work.”

Myth 4

Solution...

Stop Living Paycheck to Paycheck

Rule Four

How?

YNAB will help you work towards living on last month’s income – not next week’s – by helping you build what we call a

You’ll find breathing room. You’ll stop wasting time by timing paychecks with bills, and if you’re on a variable income, your

budgeting “problem” will be eliminated.

YNAB will help you work towards living on last month’s income – not next week’s – by helping you build what we call a

You’ll find breathing room. You’ll stop wasting time by timing paychecks with bills, and if you’re on a variable income, your

budgeting “problem” will be eliminated.

BufferBuffer

Live on last month’s income

✓You are working with a KNOWN number so there is no guesswork.

✓You no longer have to wrack your brain timing your paychecks with your bills.

✓It provides a cushion that removes you from the paycheck to paycheck cycle.

Why live on last month’s income?

“It’ll take too much time to budget.”

Myth 5

Solution...

How?

YNAB saves time

Give Every Dollar a Job

By following Rule One you don’t have to wonder each paycheck

where the money’s going.

It already has a job.

Save for a Rainy Day

You don’t have to scramble when an unexpected expense comes along,

because you’ve followed Rule Two and prepared.

Roll with the Punches

Since you follow Rule Three and just roll with occasional punches, little things don’t get to you and that saves time spent stressing over what to do.

Stop Living Paycheck to Paycheck

When you are living under Rule Four, you can pay all the bills at once on

the first of the month.

That’s it! You’re done!

“I don’t want to feel restricted and controlled by the budget.”

Myth 6

How do you feel now?




Presentation Outline

How much money do you have on hand right now to start with?

Step 1: Calling All Cash!

When first starting out, keep it simple.

Less is More.

Step 2: Deciding on Categories

Figure out what’s due and when;

Prioritize what’s most important

Step 3: Dig out a Calendar & Your Bills

Create your budget.

Always enter income FIRST, then budget it.

Step 4: Your First Budget Meeting

Remember:

You can’t budget money you don’t have.

Step 4: Your First Budget Meeting

You will keep track of

three things:

As each month goes along...

How much you budgeted

How much you spent How much you

have left

More Resources

Inline HelpYou can search for any topic.

Inline HelpYou can search for any topic.

More Resources

More Resources

YNAB Community Forums

1. Quick Responses from different perspectives

2. Good, kind, knowledgeable people

3. Community Support in reaching your goals

ynab.com/forum

More Resources

Lots of FREE

Webinars!

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