Other than listening to this week’s episode of the HerMoney podcast, what are some of the other things on your to-do list today? Have you taken time lately to think about what you’re prioritizing in life? A lot of us have since the pandemic — having more time to ourselves these last 18 months enabled many of us to focus on where we’re headed in a way that we hadn’t before. So, what’s on your must-do list now that we’re all emerging into a brighter, more normal 2021? What’s at the top of your list of needs? Specifically, what’s at the top of your list of financial needs?
Maybe — just maybe — you need a budget. At HerMoney, we would argue that everyone does, and so would our guest this week. Jesse Mecham is the Founder of You Need A Budget — the popular budgeting platform often abbreviated as YNAB. Since its launch in 2004, You Need A Budget has helped hundreds of thousands of people break the paycheck-to-paycheck cycle, get out of debt, and save more money. Jesse is also the author of the best-selling book by the same name: You Need A Budget, and his company recently earned recognition as Fortune’s #1 best small company to work for.
The YNAB app has nearly 33,000 five-star reviews on the Apple App Store, there are 64,000 people in the YNAB Facebook group, and the numbers don’t lie: In their first two months budgeting with YNAB, the average member saves $600, and in their first year of budgeting, they save $6,000.
Listen in as Jesse tells Jean how YNAB started out as just a spreadsheet, and how the “four rule” method that exists at the heart of You Need A Budget is the reason for its success. Jesse breaks down each rule in detail, and they are as follows:
Rule 1 – Give Every Dollar a Job
Rule 2 – Embrace Your True Expenses
Rule 3 – Roll With The Punches
Rule 4 – Age Your Money
We also talk about budgeting routines — the daily habits that we need to develop, and the amount of time that should be spent on budgeting, especially initially, for people who may have never done it before. And we dive into Jesse (and Jean’s!) favorite mental “tricks” that may trick our brains into saving more.
You also won’t want to miss Jesse’s best piece of advice for people who may have started and stopped budgeting at various times in their lives, who may be thinking something like: “You know what, this just isn’t for me, I don’t spend more than I make, so what’s the problem?” (HINT: It’s a big problem!)
If you’ve never had a budget before, Jesse says it’s something you should feel free to consult every day — you’re not being obsessive, you’re just being thorough!
“The daily looking at your budget, kind of tinkering around, moving money around, is totally healthy. It’s perfect,” he says. “It’s just getting you attuned to the idea of knowing what dollars you have, and, more importantly, what they will do for you, in the near and further ahead future. The other bit that’s a really strong habit to build, is when you spend the money. Right before, you pull out your phone and you look and say, ‘I’m here at a restaurant. How much is in my restaurant category? Okay, I’ve got enough. Here’s what I’ll order.’ It’s this proactive containment of our behavior, based on knowledge.”
Unfortunately, people often think of budgeting as restrictive and a tool that means zero fun… But Jesse explains how budgeting is not about restrictions at all. He also talks about how the need for budgeting has changed drastically in our one-click, instant-gratification world, wherein many of our purchasing decisions are being influenced in a way that they weren’t previously, via social media, Amazon, and many other outlets.
Jesse also offers his best pieces of advice for our listeners who may be thinking: “You know what, I’ve put this off for too long, I’m ready to get started.”
In Mailbag, we hear from a listener who is wondering where her son should start saving money while he is in medical school, and we hear from a woman who is wondering if she and her child should move (even though it will be expensive) due to a negative experience with a next-door neighbor. Lastly, in Thrive, we look at new ways to lower your healthcare costs in 2021.
The post HerMoney Podcast Episode 271: Budgeting Without Tears appeared first on HerMoney.
