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Does anyone use YNAB (You Need A Budget) and fancy a support/chat thread?

523 replies

lougle · 22/08/2013 08:16

I've just got the trial version and I'm hooked, if not slightly overwhelmed. I'm currently in 'why is it asking me to budget so much money' mode.

I'm hoping that I'll really take off with it because it sounds quite life-transforming.

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lougle · 29/08/2013 16:31

Hello Smile Yes that's right. You have to run it in Steam the first time, so that you can see what the activation code is. Then, you can download the trial version of YNAB from the YNAB website, enter the activation code and you will have the full version. The other option is to find your steam folder on your computer and make a copy of the .exe file, but the first method is the quickest.

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Badvoc · 29/08/2013 17:56
lougle · 29/08/2013 18:21

Ok. Step by step Smile

  1. Download the steam client here
  2. Go to your library in the steam client and you'll find the software.
  3. Install it.
  4. Launch the programme.
5.In YNAB, click 'Help' and 'About'.
  1. A screen will come up with a button which says 'Copy Activation Code to Clipboard.'
  2. Go to YNAB
  3. Download a trial copy of YNAB.
  4. Launch the trial version.
10. Paste in the activation code when prompted.

That's it. You'll now have YNAB available without ever having to launch Steam again.

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Badvoc · 29/08/2013 20:17

Thanks Lougle x

prettymess · 30/08/2013 09:24

I've been using the system since October. Not the software, just the ideas. We have £2k in savings and managed to replace our washing machine, fridge freezer and tumble dryer when they all broke in a span of two months. We also had a holiday in Wales. We're now saving up for a new computer. I think it works :)

We were lucky to already have a buffer in place to start the plan and we are not earning much (less than £20k a year) but managing to live well. Writing down every spend and living with last month's income does help a lot to afford some luxuries and stay debt free.

lougle · 30/08/2013 10:09

That's great, prettymess Smile

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tribpot · 30/08/2013 10:17

That's fantastic, prettymess. YNAB would definitely approve (although of course they like to sell the software) as they are about the method above all else.

BillyGoatintheBuff · 30/08/2013 10:34

This sounds interesting, is the buffer like having one months wage in savings? that you don't touch?? Does it help you to stop being wasteful with money?

tribpot · 30/08/2013 11:08

BillyGoat, the idea of the buffer is to enable you to budget an entire month's expenditure in one go, and be guaranteed you've got all the funds you need until the end of that calendar month. So if (like me) you are paid monthly in arrears on about the 27th of the month, this is far less significant than if you are (as many people in the US are) paid fortnightly. The bill cycle is still monthly but most people don't have a month's dosh on hand when preparing the budget.

As the mantra is 'only budget the money you have on hand', you can't pay all your bills based on cash you have in your current account, so have to leave the later bills in the month unallocated until you get paid again.

The UK/monthly version of this is that if you have bills that could fall either side of your payment date (i.e. some months the bill falls before, some months after) and you're not buffered you could be having to pay out two lots from the same pay packet, which can make a big dent in your income of course. So I can be buffered effectively by having a week's wages set aside so all of my August pay cheque goes forward to September, but the holy grail would be to have a month and a week on hand so my August pay cheque is untouched until October. That way I know I can pay all my September bills even if (for some reason) my August pay cheque turned up very late.

So it's not the buffer that helps you be less wasteful, it's the method itself, which makes you give every dollar (okay pound) a job at the start of the month, or as soon as it arrives mid-month. The method doesn't care how often you are paid or when in the month that is, you always budget for the calendar month.

More about the method here - it isn't the most straightforward thing to get your head round, it's worth watching some of the videos as they work through examples. It's well worth it, though, as it gives you a sense of control and mindfulness about money.

prettymess · 30/08/2013 11:33

I see it as putting all the money in one pot and then dividing it into virtual envelopes for every expense.

Currently:

  1. Savings (the £2K)
  2. Income from this month (to be spent next month)
  3. Spending this month (last month's income) which has sub categories such as food, bills, entertainment etc. Bills take priority and all the rest is make do or go without!
  4. Anything I want to save up for in specific (a new computer)

I work out the figures every morning, it takes me 5 mins. It is now near the end of the month and we did do a bit rubbish this month compared to other months. £61 left for today & tomorrow. But hey ho, it was summer holidays and at least I didn't overspend!

There's a great iPad & iPhone app that I use called Spending Tracker. I'm gutted I missed the YNAB reduction on Steam :(

tribpot · 30/08/2013 11:35

Yes, that is particularly annoying isn't it?! Hopefully there will be another sale on soon.

How do you track annual expenses, do they go into your pot of stuff you are saving up for?

prettymess · 30/08/2013 11:46

Yes, things like Christmas and car service (in May this year and was about £400 and didn't ruin us) are another pot. I need to sit and work out how big I want the Christmas one to be. Probably no more than £300.

TheMinionsHaveThePhonebox · 31/08/2013 13:41

I've just done a big check on my spreadsheet I have that I use to predict my bank balance (yes, I'm a total nerd) and I've realised that, due to the way the student loans are paid, I will be almost fully buffered for September and then everything coming in in Sept can be marked as 'income for next month'!

So pleased I've finally managed to get there, but also completely convinced that something is going to happen to wipe it out.

lougle · 31/08/2013 13:52

I've been completely detailed with my budget to get me into good habits. I'll maybe reduce the categories slightly later.

I have a master category for each week of the month, with all bills listed in date order for that week. Then I have categories for every type of variable spending.

DH got paid yesterday and I was able to budget:

  1. All the bills for the first week,
  2. The children's school supplies
  3. Groceries
  4. Fuel
  5. Christmas savings
  6. 1/12th of the future home insurance
  7. A little towards the car insurances that are currently paid monthly.
  8. Husband's MOT.

Next week I only have two bills, so the bulk of our tax credits can go towards padding out skimpy categories, etc.

It really is about 'mindfulness'. Rather than thinking 'oooh £xxxxxx in the account' I am thinking 'Mmmm...do I want to spend that much? I might have to take something out of Christmas savings if I do...'

It's quite remarkable, because actually nothing has changed. Yet, rather than feeling poor, I was actually finding that I had to work hard to allocate the money - I had more than I 'needed'.

I realised that it's true when they say 'you'll give yourself a payrise.' - By being mindful of your spending, you have more left than you would do.

OP posts:
lougle · 31/08/2013 13:53

prettymess if you add YNAB4 to your wishlist on the steam store, you'll get an email alert when/if it goes back on sale.

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tribpot · 31/08/2013 15:36

I was actually finding that I had to work hard to allocate the money

If you'd like my bank details, lougle, let me know Wink

It's worth starting to put any unallocated surplus into an emergency fund (or into the buffer) - little by little it builds up, and it means you've got a place to go to take money in case of any bumps in the road (and we know from rule 3 there will be some) without having to frantically jig things around to make ends meet.

Another good tip from YNAB is to make sure your savings pots have names. It's much harder to borrow from 'new TV' (or whatever) than it is from 'savings pot'. You are forced to think about what it is you are postponing in order to take the dosh back. Sometimes of course it will be worth it - other times, maybe not.

lougle · 31/08/2013 16:12

Haha, tribpot.

The irony is that we don't earn much as a family. What I meant was that the minute I was having to allocate money to a category, I was suddenly thinking 'ooh...do I really want to spend that there?', which of course meant that my ATB was not going down Grin

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prettymess · 31/08/2013 17:32

lougle, DH has added it to his as he's the one who has Steam :)

lougle · 31/08/2013 18:02

Fab!

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Badvoc · 01/09/2013 11:06

Omg!
Done.
Only took me over an hour!
Thanks all x

prettymess · 01/09/2013 13:44

I'm all set up for a fresh month!

lougle · 01/09/2013 14:47

It's so exciting isn't it? I checked my account for changes today, knowing that I've done quite a bit of internet shopping for the girls (shoes, coats....they grow). I know it's Sunday. I know the bank doesn't process transactions on Sunday, but I had to check Blush

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tribpot · 01/09/2013 15:31

It does make you bloody annoyed that the bank don't process transactions on a Sunday, doesn't it?! There's surely no very good reason why not - harrumph! :)

As a result, though, it normally takes a couple of days after the end of the month for me to finalise last month's accounts - I suppose that shouldn't actually stop me budgeting this month, though! Just where there's any overspend I will allocate more to balance it out this month.

lougle · 01/09/2013 16:11

Do you not enter transactions as you make them, then, tribpot? I use the mobile app to enter transactions while I'm out and about and if I make an internet order, I enter it in the desktop software immediately.

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Badvoc · 01/09/2013 16:26

Hmmm..I was going to ask that.
Do you just fill in the direct debits/standing orders and then fill in the other outgoing as and when?