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Commonly Asked Questions of New YNABers

Commonly Asked Questions of New YNABers

(uplifting music) – Hi everyone, I’ve noticed
some new faces around here. Thank you so much for
watching and for subscribing. I’m guessing that some of you decided that 2020 is gonna be the
year you get better at money and you downloaded your
free trial of YNAB. So I wanted to take the
opportunity to answer some commonly asked
questions from new YNABers. I’ll answer each question briefly, but I’m also gonna have
it time-stamped down below and link you to so some amazing resources. And if I could give you one
takeaway from this video, it is that we are here for
you, we are rooting for you and we want you to gain total control of your money, this year. Let’s go ahead and start
with question number one, “How do I start?” The first step is to realize
that you need a budget, so you’ve already done
that, which is fantastic. I remember being there and
feeling a little bit overwhelmed. I started out by reading the,
“You Need a Budget” book. I feel like it gave me a
really solid foundation and it helped me to change my mindset when it came to money. So after I read the book,
I downloaded the app. And it’s a lot, facing
your financial situation and learning an app at the same time, so I turned to the live, free workshops. Dave taught the one’s I
took and he is so good, all of our teachers are. So you’re getting live
instruction and demonstration from people who know
the app, inside and out, and then at the end, they
open it up for questions. So I definitely asked
my share of questions and it was really helpful. Something new that wasn’t
around when I got started, are the video courses. We have three right now, we have one for starting your YNAB budget, another for using your budget, and then one that goes over the four rules for less money stress. And it’s really those
rules, that’s our method and if you can embrace
them and implement them, in your own life, in your own budget, that’s what’s gonna make all
the difference this year. Question number two is,
“How do I enter my income?” And this was my biggest
hurdle when I got started. I had budgeted with apps in the past and I would think to myself,
“Well, I expect to make “this amount of money this month, “let me go through and
budget that all out.” That is forecasting. YNAB says that you only budget
money you currently have. So if I have $500 in my checking account, that’s all I have to budget with. And this really took me
a while to figure out and it finally clicked when I took the workshop
called, “Budgeting While Broke.” We’re currently teaching that workshop and we also have a recording
of it on our YouTube channel. When I stopped budgeting
with future money, I feel like I got better at prioritizing and I started making
better spending decisions. So if I’m not forecasting,
how do I plan ahead? I use the goals feature in YNAB. I have a goal for pretty
much every single category, so when I get paid next, I’ll
go in, I’ll add that paycheck, and with the new money I have to budget, I will add funds to
each one of those goals. So if you’re budgeting with
money you currently have, you don’t need to wait until
your next payday to start or until the beginning of the month. YNAB works with any pay cycle and it starts working whenever
you’re ready to start. Question number three, “It’s a new month, “and now I’m confused.” And before I begin answering
this, Ben has the best video where he walks you through, step-by-step, everything I’m getting ready to tell you, so I will link that, I
highly recommend watching it. But there’s really only
a couple things to know about the turning over of a new month. The first is that all of your
overspending will disappear. If you overspend in cash
let’s say, as an example, I overspent dining out
by $20, in December. So if I’m looking at December’s budget, I’ll see that negative
$20 displayed in red. But if I click over to
January, the balance is zero. So what happened? YNAB automatically deducted the $20 from January’s, to be budgeted. Let’s say I did the same thing
but I had used a credit card. December’s category balance
would be displayed in orange and that $20 was added to
my credit card balance. Now, if you can’t cover the overspending, in the same month that it occurs, you’ll need to budget directly to the credit card payments
category, to pay back the debt. During the monthly rollover,
your budgeting amounts will also disappear and this just means it’s
time to budget again. So you can go through and do line-by-line, category-by category, or you can use the quick budget. Something else happens
during the monthly rollover. Any positive amounts in categories will simply be carried over and be there sitting, waiting
for you, in the new month. Question number four is.
“Direct Import isn’t working. “Now what?” Direct Import makes sure that you have all of your transactions and YNAB transactions, import, once they’ve cleared your bank,
which can take a day or two. So for that reason, I
don’t love to rely on it. I wanna be able to know exactly
what’s going on in my budget at the time it happens. So if I’m out shopping
and I buy something, I add it to my budget. If I buy gas, I add it to my budget. That way, I’m not having
to wait on my bank. And when those purchases finally clear, and are imported, YNAB is super smart, and matches them all up. And I love (chuckles), so much, when my manually-entered
transactions match up with the imported ones. It makes me feel like I have
life together, a little bit. Direct Import is amazing, but there are a lot of moving parts, and sometimes the process
needs troubleshooting, sometimes banks change
things on their end. So if your connection stops
working, I have a guide for you, and I would also recommend reaching out to the YNAB support staff. They are incredible and they will go to the ends
of the Earth to help you. So whether you are using Direct Import, you like to do everything manually, or you’re like me and you like to do both, we are here to help. I love this next question,
“What about savings?” When rule one says, “Give
every dollar a job,” that includes savings dollars. Before YNAB, I would think to myself, “Well, I should be a good person, “a responsible person, and save.” So I’d get paid and I’d
take some of that money, and put it in a savings account and I’d feel really good
about myself, for a while. But as the month went on, and my checking account
got lower and lower, I’d start to feel nervous. So I’d pull some money back
from savings, over to checking, and it was this cycle I
could never get out of so my savings account never grew. But when I started naming what I was saving for, everything changed. The more specific I was, the
more successful I became. I save for fun things, like vacation, I save for things like car
maintenance and job loss. And if you open up my budget, you can see where each one of those savings
dollars is allocated to. Question number six is, “What
is this Age of Money thing?” On our YouTube channel,
Hannah has four videos where she goes over
each of the four rules. I remember when these were released, I wasn’t working at YNAB at the time and I thought they were
so funny and so good, especially rule fours. I will have that link. Definitely take the time to watch it. But if I could tell you one
thing about age and your money, it’s that young money, so
money that has just come in, you’ve just gotten a paycheck and you already need to spend it. That young money doesn’t
instill any sense of security. When Jeremy and I first got married, I thought things were fantastic. We both had stable jobs,
we bought this townhouse, we ate out whenever we felt like it. Well, we experienced a job loss, and still, to this day, I cannot believe how quickly things got bad. We went from having no worries to not being able to make the car payment and that’s because our money was so young. It was the definition of
living paycheck to paycheck. As soon as we got paid,
we spent the money. That’s why it’s really important,
to me, to have a buffer. When a paycheck comes in, it
just gets to sit for a while before it’s used. And I love being in one month and being able to budget
into the next month. That way, should anything
ever happen again, it’s not an immediate crisis; we have a little bit of
time to figure things out. So those are some of the most
frequently asked questions from new YNABers. I didn’t touch on credit cards today, but Kelly has some fantastic
tutorials I’ll link for you. And that’s a topic I’d like to
dive into a little bit deeper on this channel. I love how YNAB treats credit cards. Actually, for a long time, I was too nervous to use credit cards and YNAB gave me that confidence, so I love talking about credit cards. But I’m gonna end this video
by saying I’m excited for you, and we are here to help and support. If you have any questions,
please leave those down below. I wish you all the best and I wish you very happy budgeting. (uplifting music)

12 thoughts on “Commonly Asked Questions of New YNABers

  1. Hey Ashley! Are there any videos/advice for when one spouse is self-employed? Never knowing for sure when he'll get checks from clients has made creating a budget so difficult for me!

  2. ALSO the Reddit YNAB sub is amazing! Lots of YNABbers that will help with personalized questions. Thank you! Love your videos.

  3. Ashley, thanks for another great video. I shared this one with my kids. Hopefully, your answers to some of these questions will convince them to try YNAB. It would definitely help them all out of the paycheck to paycheck cycle. Keep up the great work!

  4. Going on 5 months of YNAB! Woo hoo! My husband and I are making moves, staying focused, and excited for 2020! Attaining our goals even the small ones slowly but surely! Love your videos, Ashley! ❣️

  5. I have been using another app but I’m not being as successful as I can be. I’m hoping YNAB is the app to helpB

  6. This system is slowly changing our paradigm concerning money and budgeting. Never had a budgeting software or system do this. It literally gets into your head, and facilitates positive change. As the old adage says, "Nothing changes till you change…"

  7. Need to caveat your excitement for using credit cards with a comment about paying them off every month! I'm going to look into the video courses. Thanks!

  8. Oh, on the topic of the book… Do we get a free copy when we subscribe for a year? ( Just curious because it's like buying a GPS and then having to pay for the maps… Oh wait… that's a thing… Good thing I already have the book in Audible.)

  9. So glad to find this channel! YNAB has changed my life for the better – even though I know I could use it better, it has had and continues to have a positive impact on me and on my family. Always eager to review concepts and learn more.

  10. "Aged money" seems to be just another term for "part of my emergency fund that's not laddered in CDs". What am I missing?

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