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Important Info
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
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
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
Let’s look at some common budgeting
Myths
But I can’t budget!
If budgeting is so great, why don’t
people do it?
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
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.
Let’s take groceriesas an example.
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.
Let’s take groceriesas an example.
YNAB keeps track of the category balance for you.
You go shopping again on the 23rd and spend $95 more...
Let’s take groceriesas an example.
YNAB keeps track of the category balance for you.
You make one more small trip...and the category iszeroed out
Think about it...
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“There are too many unexpected things that come up that you just can’t budget for.”
Solution...
Myth 2
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
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
“I keep overspending my budget – and that shows that budgets don’t work”
Solution...
Myth 3
BANG BANG HEAD HEAD HEREHERE
Let’s use an example
You budgeted $25 into your gift category for November...
...but forgot a friend’s birthday.
Let’s use an example
Your friend has very expensive tastes…
...and you overspent your Gifts Category by $50.
Let’s use an example
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.
“I can barely make it from paycheck to paycheck - having a monthly budget will
never work.”
Myth 4
Solution...
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
✓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?
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!
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
Presentation Outline
Figure out what’s due and when;
Prioritize what’s most important
Step 3: Dig out a Calendar & Your Bills
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
YNAB Community Forums
1. Quick Responses from different perspectives
2. Good, kind, knowledgeable people
3. Community Support in reaching your goals
ynab.com/forum
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