YNAB Easy Budgeting

Do you have trouble budgeting? For most the answer is yes. Budgeting doesn't have to cause headaches. Budgeting can be easy using YNAB.

What is YNAB?

YNAB is software used to create and follow a budget. YNAB makes it easy to set limits for budgeting categories and track how you are doing.

The goal is to stop living paycheck to paycheck. This is accomplished by creating a one month buffer. The one month buffer is equivalent to how much you make in one month. The buffer is used to budget for the current month. For example if the current month were June, you would be budgeting and spending money you made in May. Don't worry if you don't have enough money saved up for your buffer. YNAB will show you how to create it.

After you have your buffer created you will no longer be surprised when unexpected expenses such as car trouble or medical expenses arise. You can now roll with the punches. You are no longer limited by one months worth of pay. Go ahead and dip into your reserve buffer. YNAB will adjust your next months budget by deducting whatever you borrowed for the unexpected expense. So if you are twenty dollars over buget in May, then you will have twenty less dollars to use for budgeting in June.

YNAB Basics

Are you over your budget? Are you under your budget? With YNAB you will quickly be able to tell.

When you start the software you create budgeting categories or use the defaults. You can use basic categories such as Debt Reduction, or break it down with subcategories such as "Debt Reduction:Credit Cards" and "Debt Reduction:Car Loan".

Next, record your transactions in the register. Enter these transactions manually or download them in Microsoft Money or Quicken format from your bank. You will then assign a budgeting category to each transaction in your register.

The budget screen shows your financial information for the current month using three columns; Budgeted, Spent and Balance. The "Budgeted" column will be filled in manually by you. As you enter an amount for each category it will be deducted from that months money available. The second column "Spent", will be filled in automatically as you assign categories to each transaction in your register. The last column "Balance" will show you how much under or over you are for that budget category.

The YNAB report screen will give you a graphical representation of where you stand. This screen allows you to easily see how much money you are spending each month and your current balance for each budgeting category.

YNAB, all About Budgeting

There are other personal finance programs. For a reasonably priced Quicken Alternative or a MS Money Alternative, YNAB is the solution for you. Most programs have too many bells and whistles distracting the user from the budgeting basics. YNAB uses a proven methodology making budgeting simple and easy to stick with. If you have had trouble creating or sticking to a budget in the past, give YNAB a try, it worked for me.

Check out real life testimonials and video tutorials for YNAB