If you are in debt, accomplishing this may seem daunting. In order to achieve this, the software actually helps you stash a month’s earnings away. This system helps get you out of the habit of living on money you don’t have. This is a stroke of genius, and frankly I’m disappointed I didn’t come up with it myself. You don’t spend money you earned this month – or the money you think you’ll earn in the future.

The idea is that you use the money you earned last month to support yourself this month. Rule #1 – Stop Living Paycheck to Paycheck

Get it? Using this method, you don’t spend more than you have. You enter your income for the month and then budget how it’s going to be spent or saved.

To start off, it’s important that you understand that the program has a mission: to help you stop living paycheck to paycheck, get out of debt and save more money faster. I kicked myself for missing out on the benefits, but I wasn’t about to let any more time go by. Once I took a look “under the hood,” I realized how powerful an agent it could be to help people really get their financial houses in order.As a result, I figured it was worthwhile to look into. I constantly receive unsolicited endorsements of the program from clients, readers and friends.I’ve joined the ranks of the “true believers” for two reasons: In case you aren’t familiar with You Need A Budget (YNAB), it’s a nifty little software package that allows you to track your spending and budget for your future and generally helps you fix your financial problems. While I still think this “big picture” approach is really important, I’ve recently become a convert to the You Need A Budget crowd. One of my favorites is using your bank statement to tell you how much you spend on average each month. If you’re a regular reader, you know that I’ve suggested a few different approaches to mastering your budget. The best predictor of your financial security is how much you know about and control your budget. Let me say that again a little differently. The balance you strike between income and spending is the most important predictor of your financial future there is. (Maybe this is hard to believe, but I see this every day.) Don’t spend enough and therefore fail to enjoy the life they could.I say that because of my experience.Īnd my experience tells me that folks who don’t use a budget either: That’s right.Įven if you had Warren Buffet working for you, it would be useless if you didn’t know where and how you spent your money. And even though I’m a professional financial advisor and CERTIFIED FINANCIAL PLANNER™ Professional, what you do financially dwarfs the importance of my work. I finally broke down and decided to review YNAB, better known to some as You Need A Budget, the premier personal budget software package.

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