In fact, some of them are totally unique to the YNAB budget approach. Before you cringe at the thought of more rules, it's important to understand that these aren't your typical money guidelines. One of the things that makes budgeting so powerful is how Jesse Mecham approaches the rules of budgeting. Jesse says the point is to say yes to what you want more of.īy reframing the act of budgeting, many people feel like their money is going further. But you may also find categories where you want to dedicate more money. Ask yourself what you want your money to do.Īs you get more clarity around your finances and your goals, you will find places where you want to trim expenses. Instead of focusing on what you have to eliminate, start from a different mindset. However, he challenges everyone to turn that belief on its head. Jesse says that people have the instinct to associate budgeting with cutting. The good news is that doesn't have to be true of budgeting either. Of course, that's not what sustainable healthy eating looks like long term. Jesse says that like dieting, people worry that there are no more treats ever. People see budgeting as a restriction, so it makes sense that they think they don't like budgets. Thanks to those conversations around budgeting, they were able to get on and stay on the same financial page. A common question they returned to is “Why are we spending our money here?” Rather than just focusing on their money, they talked about different goals and values. The power, he says, is that their budgeting conversations allowed them to think about the bigger picture. They used their budget to guide their journey as a young couple and as young parents. He also continued to have money conversations with his wife. As their family started to grow, Jesse realized that perhaps other people could benefit from his spreadsheet system as well. He was newly married with a meager income, determined to watch his dollars.įor the first year or so of their marriage, Jesse and his wife worked from a spreadsheet to guide their finances. When Jesse Mecham first started budgeting, he started from where many people start. How Jesse Mecham Created His First Budget If you're looking to get on track this year and allow your budget to be a tool for your wealth-building success, check out this interview. Jesse Mecham is a wealth of knowledge and a family man. Why you should talk to your spouse about life instead of just numbers.How the YNAB Rules help you enjoy budgeting.
JESSE MECHAM YOU NEED A BUDGET PDF
Supplemental enhancement PDF accompanies the audiobook. It's not about stressing over last month's statement instead, you're looking ahead and actively deciding how you want-and need to build a life of meaning not stress. It helps you change your behavior so that you're proactive and in control of your finances. YNAB's four rules are the pillars of a tried-and-true system that gets you to engage with your money every day. In other words, if you're going to break the paycheck-to-paycheck cycle, you need to learn to live on money you earned a month or two months or even three months ago. The goal of this rule is to increase the time between the moment you earn money, and the moment you spend that money. The YNAB philosophy not only tolerates changing your budget, but rather encourages it. If an unexpected expense comes up and you need to change your budget, just change it. Accept the fact that life always changes and you'll likely always go over budget somewhere. This practice evens out your cash outflows, decreases your stress, and helps you make better decisions. Consider insurance premiums, birthdays, holidays, charitable giving, car repairs, etc. Break those expenses into manageable monthly amounts. Look ahead and identify the larger, less frequent expenses that tend to sneak up on you. Pick your priorities, and make sure your dollars are helping you move closer to the things you care about most. Take your cash, checking, and saving accounts and assign jobs to that money. The YNAB philosophy is centered around these four rules: A liberating, enabling, empowering budget will actually make you feel more free, not more restricted. With a budget, you'll break the paycheck-to-paycheck cycle, get out of debt, and save more money. You Need A Budget will teach you four simple rules to completely revolutionize the way you think about managing your money. But your initial instinct couldn't be further from the truth. For most people, budgeting conjures up the same feelings as, say, prison and dieting.