One of the primary benefits of working with an app like Quicken is that your information is stored on your own computer. Read More: 4 Reasons YNAB Beats Mint Hands Down Quicken Features But they don’t offer any resources or tools to move you to the next level, which is investing. YNAB helps you to get control of your finances, get out of debt, and begin saving money. YNAB Investment Features: This is one of the weak spots in an otherwise strong financial management platform. YNAB Workshops: YNAB provides daily online classes to help you manage your finances. You can access real-time data online or on the app at any time so you always know where you’re at with your budget. Real-time Information: YNAB makes it easy to use for couples. In this way, they attempt to make seemingly far-off and difficult goals more achievable through short-term action steps. Goal Tracking: YNAB directs you to set monthly funding goals, which will enable you to break your long-term goals into smaller, more manageable ones. With the four basic rules firmly in place, YNAB offers the following features and tools to help you work within those roles: In this way, YNAB fully recognizes the intimate connection between emotions and finances. It will force you to build savings, and to get away from the usual paycheck-to-paycheck existence that causes so much financial stress. The philosophy behind this rule is to move you steadily away from living on the financial edge. By getting to the point where you’re always at least one month ahead of your expenses, your entire financial situation begins to open up. The most basic purpose of a budget is to create extra room in your finances. Put another way, it keeps your income one month ahead of your spending. YNAB wants you to work toward being able to spend last month’s income this month. The specific expense categories vary, but the overall budget remains intact. If for example you spend more on car repairs than you budgeted for the month, you move money out of other categories, like groceries, entertainment, and gifts. But this rule requires that you make adjustments in other spending areas to offset the higher-than-expected category. It requires that you build flexibility into your budget.įor example, it’s very common to go over budget in any single spending category. This rule is one of the basic principles that sets YNAB apart from other budgeting apps. That prevents them from becoming budget-busters once they hit. The purpose of the rule is to take those expected large outlays, and blend them more efficiently into your regular budget. An example can be a large annual insurance premium, or an upcoming vacation. It requires that you budget for this expense in advance. These aren’t unexpected emergencies either, but rather large and may be irregular. This rule requires that you budget for large expenses. The purpose is to put you in full control of your spending activity. This rule gives you a chance to determine beforehand how and where your money will be spent. In the process, each available dollar is assigned a spending category. The basic idea is that you establish from the beginning specifically what you want your money to do for you. The YNAB program is built on a foundation of four basic rules: Rule #1: Give Every Dollar a Job They claim new users can save an average of $600 in just the first two months, and over $6,000 in the first year. YNAB has steadily grown to be one of the most popular budgeting platforms there is. The app attempts to be a full-service budgeting and financial management platform, that helps you to become gradually better at handling your finances. It provides all necessary budgeting tools, plus abundant support and educational resources. When they saw how effective it was, they launched it to the general public. It was launched in 2003, mainly as an app for the owner and his wife to maintain their own budget. Short for You Need a Budget, YNAB is one of the better established budgeting tools.
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