Ernie, instead of “Housewares,” we have “Consumables” (laundry soap, paper towels, toilet paper - those things that we consume through the month and need replenished), and “Durables” (towels, brooms and mops, napkin holders, clothes hamper, pots and pans, etc.).
I have a "Shopping (Durable)" group separate from a "Shopping (Consumable)" group. I'll only buy furniture once in a while but I might buy a candle every month. I don't buy every consumable item every month but they're usually small things like toilet paper or dish soap, not things I have to save up for and plan. So they're almost like bills - they're mostly required every month.
I'd love if you guys did an episode about the first few months of YNAB. There are so many videos that help you set everything up but nothing prepared me for how frustrating it would be to balance out the budget - figure out different amounts, getting excited about your budget plan and then realizing how often you have to move money around. I've had YNAB for a couple weeks and in that time I feel like I've gone from excited to bummed out about my money and I know that's not the goal. Setting up my credit card with old expenses making it complicated is also frustrating and confusing. I know it'll balance out eventually but I feel like I'll have budget whiplash for at least a couple months as it sets up. Advice and help would be awesome!
Trying to add old expenses can get confusing. It's suggested to just add the current balance on the day you add the account and then only add future expenses. It means the first month's report is going to be inaccurate, but it's worth not adding the confusion.
You are not alone trying to figure out the finer details of Ynab. Handling money properly with wisdom requires alot of time & thot for sure. Gotta Keep trying.
My name is Fran and I am a budget nerd. I can say it now and accept it. OMG! Only budget nerds can listen to 48 minutes of talking about true expense categories!! And I just enjoyed EVERY minute! I just hate not being able to join the conversation live! LOL
Hey Ben, start funding that appliance category! I have a beautiful Kitchenaid stove, 15 years old, one burner stopped working. Repair person can fix it except… Kitchenaid no longer makes the part. So we’ve been living with 3 burners, will replace it next year, but a word of experience, appliances don’t have to be that old before they stop being able to fix them
I know I'm so bad! 🙈 I do have a healthy home maintenance category I've ben using, but man it would be nice to have that to. I'll have to do some thinking on that. :D ~BenB
Ben! Don’t do it! You don’t have to do a Fresh Start and lose all of your data! Just set your Assigned to Zero! Keep your data!!! Ernie, Durable Goods and Expendable Goods. (And stop peer pressuring Ben to do a Fresh Start. Data is very important to some of us nerds!)
I love the differences in how people categorise. It's so interesting. I have one gift category total, which is 150/m into it. It covers birthdays, christmas, flowers for people etc. I don't feel much need to really get into detail on how I spend that like for christmas etc. I've just bought a house (one of the factors for starting YNAB was to meet my next financial goals following that!) so I'm getting pretty frustrated at emptying out my home decor category each month. It's a catch-all for any and all upgrades in the house, so whether a towel or a dishwasher, it would go in that category. Can't wait for the place to be furnished so that can start to accrue money for when things need to be replaced eventually.
I like that! Because you just need to make sure you have enough and save enough money…I guess it doesn’t matter exactly what it is for..it’s a general category name.
We use Home Goods (like the store 😂) for things like towels, pots and pans, etc. We put household items (cleaners, deodorant, etc) into groceries because we don’t spend much on it so we had no need for a second category.
I have a paying it forward category too, plus a category for oil changes/tires. For appliances, I have a small appliance ( microwave/toaster) and a large appliance for stove/washer, etc. I also have a deductible category for medical, home, and auto.
Rule ONE! Favorite no question...give those dollars jobs to do. I have a "Household Durable Purchases" category for "Housewares". And I love the idea of a poker category.
For cars... I dont know where I heard of it (did not think of it myself) but I added a insurance deductible... couldn't believe I hadn't thought of it since last year I had to pay the deductible twice in five months!
Thanks for the idea of adding what ever I can to certain True Expenses each month (like car replacement). It's a reminder that even with a "boring" financial life, different things come up month to month and we can't always know the exact dollar amount. I get very attached to trying to amortise the True Expense to the exact same amount each month to reach my target by due date and then feel bad when I have to Rule 3 it so often.
I love these conversations. It helps keep me focused :) Thanks guys! Oh and we get the newspaper too bc my kiddo loves reading the comics. Otherwise I'd totally do it online
I only use one monthly household category... do a wishfarm for the bigger/special items for house that I need/want for example (Coffee grinder, decor carpet, spices rack, rice cooker). When I do the spending, I move the money from the wishfarm to household. that way, I know how much I actually spend for a year to make my place a functioning and comfortable place to live in. It might works for me because I am live alone and rent a small place, which makes it simpler than a bigger house
I used to separate everything out but now I just have one category called Home Expenses. It includes insurance, home maintenance, and needed household goods like lightbulbs, batteries, sponges, etc. Then I have a separate category called Housing Discretionary and (this is a recent change) I don't fund it at all. Instead I use a Wish Farm for those discretionary items (a lemon juicer, organization tools, small appliances, etc.) Then I transfer the money from the wish farm to that category. I just implemented this month because my household spending was out of control. I wasn't really distinguishing between wants and needs. Now I can see exactly what I'm spending on those discretionary items and when I do buy them, feel like I earned them. And since it takes time to water wishes, I can think about how much I really want that thing.
For me, the vehicle maintenance/repairs category and the new car category are one and the same. For example say my car broke down and it will cost $1000 to fix it, but I only have $500 in my repair category. I'll need to fine the other $500 from somewhere so why not the new car category that $1000+, because I don't have enough to buy a new to me car, but I have enough to fix my current vehicle. Instead of funding those two categories separately, I just fund the new car category, and hopefully by the time anything major happen, I will have a new to me car and I don't have to worry about it. I do have both categories, but I don't fund the vehicle maintenance/repair category, I just Rule 3 from the the new car category. As for my emergency fund, I have a category called " Insurance deductibles" with my maximum deductible for each of my insurance (Vehicle/House/Medical) and I am one month ahead on the budget. It just with my job, I could quit tomorrow and have a new job by this time next week making the same amount if not more. This is for Ben about the blind's. Does your wife want the new window blinds, because the old ones are broken and faded, or because she wants a different look? If you are replacing them because they are broken and faded, then that would go under house repair/maintenance, but if she want to replace them for a new look, then that would be a wish farm item and categorize as a home improvement.
Thanks for these videos! I haven't started using YNAB yet but I'm SO ready and genuinely excited to after watching videos on this channel and hearing so many interesting perspectives.
Maybe somebody already raised this, but for me the emergency fund is not entirely for the emergencies mentioned in the episode (refrigerator, etc) and for me definitely not for replace the true expenses category. For me the emergency fund is for situations where I will be out of income for a while, whatever the reason (unemployment, etc). But yeah, you can implement your emergency fund also in YNAB in a way that you fund your expenses 3-6 months ahead.
This is exactly what I was thinking when they were talking about foregoing emergency funds: what if someone loses their job! We don’t touch our emergency fund and won’t unless we have a loss of income.
I have learned so much from you guys and your realness and sharing. I’m very grateful for your sharing. Truly a ginormous help for someone that has just winged it most of the time. Good stuff!
After watching the Budget Refresh video I bit the bullet on my savings accounts and reduced them to one (Travel as I really like to see that separate). Everything else in my current account. Makes YNAB so much easier.
Favourite Rule: 4! I didn‘t need all my Grocery money? Great, I can throw it to the rent in three monthes! I LOVE that function because pre-YNAB I wasn‘t able to manage such things without losing the overview. For me THAT is the biggest difference to other methods/apps. It gives me a lot of peace to cover the next months before I put the rest in new clothes or new car category.
It's whatever you think you want to spend. Kelly blue book is a good start to look at used car values. I did a brief search for "cars under $10,000 for sale" on the internet and saw what that would get me. I also looked up new crossovers as my top limit. You can increase your dollar amount by $1,000 or $5,000 increments and see what that will get you and come up with your own number.
I agree. You could also start with a fixed monthly amount-every month paying yourself the amount of your last monthly car payment. As that builds up, you may gain a better sense of how much you'll need and then you could start shooting for that number. Good luck! ~Ernie
Just throwing some stuff out there as food for thought. Car property taxes vary by city, county and state, just like house property taxes vary. Have had my share of them given that I live in my 8th state now. One expense that I haven't seen mentioned (does this show my age?) is annual long term care policy premiums. Annual accountant fees for tax prep if you use one? I used to own a rental property and there were expenses for that that had to be budgeted and I didn't want them bundled into my own personal household expenses. Also, if you haven't yet seen Hannah's video about forgotten expenses, like new tires, it's worthwhile watching. A lot of her ideas in that video are about kids, but since mine are all adults now, I didn't really pay much attention to those!
Ben, I also create a separate Christmas budget where I separate all the individual expenses. I've played with using the Api (because I'm a programmer) to automatically copy the transactions from my main budget to my Christmas budget, but my logic still needs work!
I laughed so hard when Ben was justifying how he doesn't need to fund his Appliances category! I thought it was hilarious, especially given the fridge situation! :D Ben, I'm sure you'll be able to roll with the punches and cover that spending once you do need to replace that fridge, so I'm not worried about you. But I just found your somewhat logical explanation so funny! :D
One of my problems is one mentioned at 7:00 about auto expenses and savings. Is it a type of ADHD or something? Everytime I get a paycheck I tend to go way too forward with some future expenses for example my car insurance this will be my first time saving for that annual expense it won't be due til April and I could fund it twice a month to meet my goal but I do it first thing I get paid and then I realize I don't have enough wiggle room for other expenses but it gets me frustrated because I feel like Im not getting ahead but like this guy said it's ok to spend from there as long as I refund what I spent. It's just a pet peeves i guess idk
Btw Ernie, I totally relate to the Housewares struggles! Our category used to be called 'Things for Home,' which is way too vague. Now I renamed it to "Houseware (Things for Home)." Massive improvement! :D
I have a category called Household Purchases under Personal/Quality of Life. And another category called Home Repairs/maintenance, under Housing. I have tweaked my categories so that when I run reports, everything makes sense.
Need to say I enjoy the show before I could not Save any money and now the first of the month i can pay my rent and all my bills its nice to have peace if mind and money in your bank account
Guys, this episode made me chuckle. Maybe there is something wrong with me, but I recently (prior to this video) anguished over the differences between how to save for things like shingles, a broken appliance, and new things added to the house or inside the house. Why? Because I want it to be clear and easy to explain to myself and my spouse. Clarity helps me make better decisions. So, here is what I came up with. See if it helps. I have a home property group that quantifies everything associated with that specific property. If I move to a new property, I would establish a new budget for that property. However, the furnishings would come with us. Unless a very special case, the appliances would also stay put. They serve the property in that respect. In that category group I address the dilemma you spoke about in the video. Sub category "Property Improvements" are anything that adds to the property (new circuit for the EV, new addition, a new contribution to the structure like insulation to a very cold Nebraska winter pole barn gym setup, or a new type of appliance). Sub category "Property Maintenance" is maintaining the existing property (replacing shingles, replacing bad windows, fixing the numerous things the boys break :(, appliance breakdowns, etc.). Home improvement can be planned for: you get to choose when to add. Home Maintenance is far more unpredictable except that boys are predictably destructive!!!! We also have a furnishing category since all those things will either go with us or be sold separately of the property. I used to budget for appliances but ultimately decided that they serve the property and they need maintained or replaced when broke (still maintenance cost unless we really need to borrow from the improvement category). Why does it even matter? Well, because I can save for one as a goal/target, and the other category I sink for the "true expenses" as you refer to them. They will happen at some point. This clarified my thinking. I hope it helps you or someone else. Love the content.
You're absolutely right-clarity helps make better decisions. I think that's why it's so important to regularly go through your categories to see if there's anything you can do to increase clarity. Appreciate the thoughtful comment! ~Ernie
So glad you asked! I did a fresh start recently and Ernie and I just recorded an episode to talk about it. We're a little ahead, so I think that should drop around the new year. ~BenB
Impound accounts are a big no no for me. I moved to a new state and when I got my loan, I got my estimated closing cost and saw the impound account and told the lender that I do not need it. They were all confused and tried to convince me that it was the best way to go. Apparently, (and I have confirmed this with a few sources) it is very rare here, in this state, not to have an impound account. I put my foot down, asked if it was a legal requirement, it was not and asked if they required it to lend me money, they did not. So they eliminated it and now I pay my own taxes and insurance. Funny thing is, one year later, I was expecting my property insurance bill and it didn't come. I contacted my agent and he told me they sent it to the lender. I told him I do not have an impound account and he was shocked. It was the first time he knew anyone that direct paid their insurance/taxes. So my sources were correct that impound accounts are the norm here.
Instead of Housewares we have called it Household. It also is where we take paper towel, Dishes, Linens. Everything that isn't Groceries. Then we have a Large Purchase & Home Decor for Furniture, Paint, Etc.
I am going through my true expenses. I figured out that the renewal fee on my certification is 25.00 every two years. I am not making a category for that. I have a new rule: everything under 100 is a spending category, and over 100 is a true expense. (I am not having an extra category in my budget for 1.00 a month) Just my thought processes.
I like to keep all the small categories so I don’t have to remember when they’re due. I schedule in a future transaction for them and only fund them in the month I have to pay for them rather than giving them a target. One day I could try the same thing but just under a Spending category like you do. I’d like to be that chill but I’m not there yet. I guess it depends how excited you get by capturing all the data 🤣
When you buy or sell a house it’s considered a fixture you expect to leave or expect to have when you move in - yep Ernie just said it. Nope Ben leave the blinds up! Haha This is a really fun discussion.
A question for the budget nerds! This year my husband was without work for half the year and is thankfully now employed again. We were nailing all of our true expense categories before that but they have been dwindling ever since due to rolling with the punches. Having a real problem saving towards true expenses at all now. Saving monthly to RRSP and TFSA which we don’t use but thinking we must be at the point where we are “spending/investing” more than we earn. Hating the thought of cutting the investing but mostly have yellow true expenses every month. Any tips or it’s as basic as that? Should be able to fund all true expenses each month? Thank you!
I got ynab 9 months ago and have had a hard time learning the details and following thru consitently- I have fresh started 2x. I've spent hours on videos and live tutorials- now months later, I dont remember it all. We sold our house in Apr & moved across country in that time so expenses have been all over the place and incr debt in finding a new place. Plus 2 married ppl think quite differently about money. Trying to wrap my head around it all and I feel overwhelmed. 😵💫
I understand that overwhelmed feeling! In these types of moments, it helps me to pick one small thing that I can do consistently (every day, every other day) until life slows down a bit. I always try to start small and build from there. ~Ernie
Love the video. I would really like to have a better explanation and deep dive into the new Loan accounts. The process and interface seems confusing. Any chance? +10 on the Escrow account
Hi Nerds, a topic I’d love to see discussed with Ben and Ernie is how to categorise Christmas or holiday time expenses in quite a granular way. For example, do seasonal grocery purchases go under groceries even though they are above and beyond my regular shop or do they come under the Christmas or Holidays category? When I’m buying more takeaway because I’m on holiday, does that go under Takeaway or Christmas/Holiday? When I buy some treats to bring to someone’s home that I’m visiting, and yet I enjoy them too, are they gifts, groceries or eating out? Then, sometimes I buy things for my regular life like clothes or household items while I’m away because I see something different than I could get at home, how should I categorise that? It’s not on my wish list let alone growing in my wish farm. Do I just roll with the punches and move money to those regular categories or are these better as Holiday category purchases where it’s just a chunk of money I spend from in what ever way I want? Love to hear how others do it.
I struggled with categorizing extra groceries for food I brought to events or for hosting, and I didn't like feeling like I didn't want to be generous in that way to avoid overspending my groceries, so I made a new "hospitality" category under my "others" group (along with gifts and donations). If I buy something on a trip that I would buy at home (clothes, decor), I just categorize it there. Something like a souvenir or groceries to take to a hotel room, I lump in with restaurants and attractions in a "dining/entertainment/other" category under travel (along with accommodations & transport). It really all just comes down to what you want to have reporting on. So for something like the holiday food or takeaway - do you care more about seeing how much total you spend on groceries/takeaway (put it in the regular category and roll with the punches) or seeing how much the holidays impact your spending and prepare for it (create a holiday spending category or even group)?
If you show the house with the blinds...then the blinds go with the house.....unless the contract says you are taking the blinds and the buyer agrees. :)
What kind of target should I use for something like car insurance that I pay every 6 months? Right now I have a spending target since that's the only type that has a specific due date and the ability to repeat, but it just got messed up for my most recent bill since the due date landed in a weekend, so the bill was actually auto-paid the following Monday. That meant the spending target rules over to the next 6 month due date, and was immediately fully funded. Turn when the insurance payment came in, it was still considered fully funded for the next due date. :( Any thoughts on how to handle this and other expenses like it (yearly gym membership, vehicle registration, etc) in terms of the types of targets to use?
I enjoy these conversations. I'm trying to embrace YNAB, but it's still a little overwhelming. Im still trying to wrap my head around not forecasting. Definitely a residual Every Dollar habit. 🤦🏾♀️ Thanks for sharing this topic. 😉😊
It also took me a while to get used to not forecasting. In fact, I completely gave up on YNAB after my first attempt, but I sure am glad I gave it another try because eventually things clicked! Don't hesitate to reach out if there's any way we can help! ~Ernie
Yes. I struggle with staying a month ahead. I think because i get comfortable. But I'd love hear about people's process for budgeting out further. How they get there and how they stay there. I love hearing about the process and habits/routines related to this.
I have a renewal category for renewing passports ( I have 2), my national ID card and my driver's license. It only comes up every few years but the 500$ or so it costs me would be a pain to pay all at once and by funding it really far in advance I can contribute such small amounts that I really don't feel the 15$ leaving my account each month.
Prudent reserve is how AA (Alcoholics Anonymous), and I guess other 12 step groups, call how much money they save to make sure they can run if income stops. Called prudent because the groups should not save too much money.
Hi guys, New YANBer here, 👋, i'm trying to make the most of my savings (like any euros put toward non monthly expenses or even for next month) by puting them on a saving acount (where they get rewarded). But when i make the transfer from my checking to my saving account the amount available in the category goes back to 0€. Should i make a separate budget with only my non monthly expenses linked to my saving account to be able to see how much i really have available in each category or is there a better way? If this is a good way to do it is there a possibility of copying the categories (and emojis, what a work 😂) from one budget to an other? Thank you for your tips and tricks, it does help a lot!!
Ok, so I am 8 minutes in..tax return was just mentioned. Does anyone actually get a tax return after their kids are over 17? We went from getting about $2,000 back to owing about $4,000 since my “kids” are now 18 and 22 (one married and I’m not claiming). How do I get a tax return again? At least a small one would be better than all of a sudden owing $4,000 now. I know I can change the amount I have withheld and all that stuff..but it still the same..I’m paying more taxes. I guess that’s just what happens when your kids are older.
You are totally in control of how much tax is withheld from your paycheck! Talk to your employer about increasing your withholdings to be sure you pay enough in taxes. ~BenB
@@YNABofficial I know I can do that. I am just saving it in my bank account instead (in YNAB it’s my Taxes category…so I can keep the money instead of the government) . I just mean that I have to pay thousands more than I did just a year ago :( I used to get a refund and was able to put that aside for vacation. Now I think I’ll be paying about $4,000. Big difference. I’ve thought about putting more into a retirement account, or my son’s 529 tuition fund, but that is still more money out of my pocket.
Don't replace the fridge Ben! It's an easy fix just UA-cam it. I had the same problem happen to mine, for me I just had to clean out the filtration system because I had ice🥶 from the freezer blocking the return
It doesn't take that long to post, most video creators record content a while before posting. They can also record several videos in short succession, and have videos on hand to upload while they are on breaks so viewers get the same regularly scheduled content. It's very common practice.
The home discussion is pretty interesting. I’m always considering which types of things should be grouped together or have their own category or whatever. It’s a thinker lol Also I just want to see your budgets visually 😅
Ernie, instead of “Housewares,” we have “Consumables” (laundry soap, paper towels, toilet paper - those things that we consume through the month and need replenished), and “Durables” (towels, brooms and mops, napkin holders, clothes hamper, pots and pans, etc.).
That makes a lot of sense. Let me see what Christy thinks! Thanks Brian! ~Ernie
Mine are "Non-comestibles" (because I think about cleaning stuff in relation to groceries) and "Home goods" but same deal
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I have a "Shopping (Durable)" group separate from a "Shopping (Consumable)" group. I'll only buy furniture once in a while but I might buy a candle every month. I don't buy every consumable item every month but they're usually small things like toilet paper or dish soap, not things I have to save up for and plan. So they're almost like bills - they're mostly required every month.
I'd love if you guys did an episode about the first few months of YNAB. There are so many videos that help you set everything up but nothing prepared me for how frustrating it would be to balance out the budget - figure out different amounts, getting excited about your budget plan and then realizing how often you have to move money around. I've had YNAB for a couple weeks and in that time I feel like I've gone from excited to bummed out about my money and I know that's not the goal. Setting up my credit card with old expenses making it complicated is also frustrating and confusing. I know it'll balance out eventually but I feel like I'll have budget whiplash for at least a couple months as it sets up. Advice and help would be awesome!
Trying to add old expenses can get confusing. It's suggested to just add the current balance on the day you add the account and then only add future expenses. It means the first month's report is going to be inaccurate, but it's worth not adding the confusion.
You are not alone trying to figure out the finer details of Ynab. Handling money properly with wisdom requires alot of time & thot for sure. Gotta Keep trying.
My name is Fran and I am a budget nerd. I can say it now and accept it.
OMG! Only budget nerds can listen to 48 minutes of talking about true expense categories!! And I just enjoyed EVERY minute! I just hate not being able to join the conversation live! LOL
Ben procrastinating on his appliances category is the most relatable thing ever 🤣
The best moment is when I have my evening and I see a new budget nerds that is 48:00 long just came out! ^^
Y'all are not alone! 😀 ~Ernie
Hey Ben, start funding that appliance category! I have a beautiful Kitchenaid stove, 15 years old, one burner stopped working. Repair person can fix it except… Kitchenaid no longer makes the part. So we’ve been living with 3 burners, will replace it next year, but a word of experience, appliances don’t have to be that old before they stop being able to fix them
I know I'm so bad! 🙈 I do have a healthy home maintenance category I've ben using, but man it would be nice to have that to. I'll have to do some thinking on that. :D ~BenB
Oh my gosh, I just want to say how much I love and appreciate the existence of Ben's Compassion category. You're doing good, man 👍.
We gotta make a target to get my guys better mics 😂 - have referred 3 different friends to YNAB - y’all are doing the lords work 🙏
Haha! Apologies for the sound issues in this episode. We are getting that sorted! Thanks for referring your friends, Drew! 😄 - Ashley
Ben! Don’t do it! You don’t have to do a Fresh Start and lose all of your data! Just set your Assigned to Zero! Keep your data!!!
Ernie, Durable Goods and Expendable Goods. (And stop peer pressuring Ben to do a Fresh Start. Data is very important to some of us nerds!)
Ben, I LOVE your compassion category! I’m not there yet, but I want to add that category as soon as possible! ❤
I have been patiently waiting for a new Budget Nerds to episode! I haven’t mastered rule #2 yet so this was the motivation I needed.
I love the differences in how people categorise. It's so interesting. I have one gift category total, which is 150/m into it. It covers birthdays, christmas, flowers for people etc. I don't feel much need to really get into detail on how I spend that like for christmas etc.
I've just bought a house (one of the factors for starting YNAB was to meet my next financial goals following that!) so I'm getting pretty frustrated at emptying out my home decor category each month. It's a catch-all for any and all upgrades in the house, so whether a towel or a dishwasher, it would go in that category. Can't wait for the place to be furnished so that can start to accrue money for when things need to be replaced eventually.
I like that! Because you just need to make sure you have enough and save enough money…I guess it doesn’t matter exactly what it is for..it’s a general category name.
We use Home Goods (like the store 😂) for things like towels, pots and pans, etc.
We put household items (cleaners, deodorant, etc) into groceries because we don’t spend much on it so we had no need for a second category.
I have a paying it forward category too, plus a category for oil changes/tires. For appliances, I have a small appliance ( microwave/toaster) and a large appliance for stove/washer, etc. I also have a deductible category for medical, home, and auto.
Rule ONE! Favorite no question...give those dollars jobs to do. I have a "Household Durable Purchases" category for "Housewares". And I love the idea of a poker category.
For cars... I dont know where I heard of it (did not think of it myself) but I added a insurance deductible... couldn't believe I hadn't thought of it since last year I had to pay the deductible twice in five months!
Thanks for the idea of adding what ever I can to certain True Expenses each month (like car replacement). It's a reminder that even with a "boring" financial life, different things come up month to month and we can't always know the exact dollar amount. I get very attached to trying to amortise the True Expense to the exact same amount each month to reach my target by due date and then feel bad when I have to Rule 3 it so often.
Hey, if you had money in there at all you are removing the risk or amount of debt you would get if you hadn't been saving at all.
I love these conversations. It helps keep me focused :) Thanks guys! Oh and we get the newspaper too bc my kiddo loves reading the comics. Otherwise I'd totally do it online
I only use one monthly household category... do a wishfarm for the bigger/special items for house that I need/want for example (Coffee grinder, decor carpet, spices rack, rice cooker). When I do the spending, I move the money from the wishfarm to household. that way, I know how much I actually spend for a year to make my place a functioning and comfortable place to live in. It might works for me because I am live alone and rent a small place, which makes it simpler than a bigger house
I used to separate everything out but now I just have one category called Home Expenses. It includes insurance, home maintenance, and needed household goods like lightbulbs, batteries, sponges, etc. Then I have a separate category called Housing Discretionary and (this is a recent change) I don't fund it at all. Instead I use a Wish Farm for those discretionary items (a lemon juicer, organization tools, small appliances, etc.) Then I transfer the money from the wish farm to that category. I just implemented this month because my household spending was out of control. I wasn't really distinguishing between wants and needs. Now I can see exactly what I'm spending on those discretionary items and when I do buy them, feel like I earned them. And since it takes time to water wishes, I can think about how much I really want that thing.
For me, the vehicle maintenance/repairs category and the new car category are one and the same. For example say my car broke down and it will cost $1000 to fix it, but I only have $500 in my repair category. I'll need to fine the other $500 from somewhere so why not the new car category that $1000+, because I don't have enough to buy a new to me car, but I have enough to fix my current vehicle. Instead of funding those two categories separately, I just fund the new car category, and hopefully by the time anything major happen, I will have a new to me car and I don't have to worry about it. I do have both categories, but I don't fund the vehicle maintenance/repair category, I just Rule 3 from the the new car category.
As for my emergency fund, I have a category called " Insurance deductibles" with my maximum deductible for each of my insurance (Vehicle/House/Medical) and I am one month ahead on the budget. It just with my job, I could quit tomorrow and have a new job by this time next week making the same amount if not more.
This is for Ben about the blind's. Does your wife want the new window blinds, because the old ones are broken and faded, or because she wants a different look? If you are replacing them because they are broken and faded, then that would go under house repair/maintenance, but if she want to replace them for a new look, then that would be a wish farm item and categorize as a home improvement.
Love these videos!!!! Cheers to you both and you always give me something new to think about. Thank you!
Lol! You guys are SO NERDY! Thanks for the laughs and the deep dive! It's very helpful to me since I am so not a budget nerd 🤓🙂.
Right when I was looking for some ynab videos in the style of Ben & Ernie to watch just because I like YNAB - I see this one, from 7 minutes ago !
Love your compassion category Ben, well done sir!! God bless!!
Thanks for these videos! I haven't started using YNAB yet but I'm SO ready and genuinely excited to after watching videos on this channel and hearing so many interesting perspectives.
Awesome!!! We're so excited too! Let us know if you have questions! ~BenB
Maybe somebody already raised this, but for me the emergency fund is not entirely for the emergencies mentioned in the episode (refrigerator, etc) and for me definitely not for replace the true expenses category. For me the emergency fund is for situations where I will be out of income for a while, whatever the reason (unemployment, etc). But yeah, you can implement your emergency fund also in YNAB in a way that you fund your expenses 3-6 months ahead.
This is exactly what I was thinking when they were talking about foregoing emergency funds: what if someone loses their job! We don’t touch our emergency fund and won’t unless we have a loss of income.
yes. emergency fund is for meeting your bills without income. I have been in IT for 28 years. we learn to expect to lose our jobs. 😢
I have learned so much from you guys and your realness and sharing. I’m very grateful for your sharing. Truly a ginormous help for someone that has just winged it most of the time. Good stuff!
After watching the Budget Refresh video I bit the bullet on my savings accounts and reduced them to one (Travel as I really like to see that separate). Everything else in my current account. Makes YNAB so much easier.
Favourite Rule: 4! I didn‘t need all my Grocery money? Great, I can throw it to the rent in three monthes! I LOVE that function because pre-YNAB I wasn‘t able to manage such things without losing the overview. For me THAT is the biggest difference to other methods/apps. It gives me a lot of peace to cover the next months before I put the rest in new clothes or new car category.
Thanks for this video, guys! I always struggle with what target amount might be appropriate when saving for a new car. Any advice? 😊
It's whatever you think you want to spend. Kelly blue book is a good start to look at used car values. I did a brief search for "cars under $10,000 for sale" on the internet and saw what that would get me. I also looked up new crossovers as my top limit. You can increase your dollar amount by $1,000 or $5,000 increments and see what that will get you and come up with your own number.
I agree. You could also start with a fixed monthly amount-every month paying yourself the amount of your last monthly car payment. As that builds up, you may gain a better sense of how much you'll need and then you could start shooting for that number. Good luck! ~Ernie
Just throwing some stuff out there as food for thought. Car property taxes vary by city, county and state, just like house property taxes vary. Have had my share of them given that I live in my 8th state now. One expense that I haven't seen mentioned (does this show my age?) is annual long term care policy premiums. Annual accountant fees for tax prep if you use one? I used to own a rental property and there were expenses for that that had to be budgeted and I didn't want them bundled into my own personal household expenses. Also, if you haven't yet seen Hannah's video about forgotten expenses, like new tires, it's worthwhile watching. A lot of her ideas in that video are about kids, but since mine are all adults now, I didn't really pay much attention to those!
Ben, I also create a separate Christmas budget where I separate all the individual expenses. I've played with using the Api (because I'm a programmer) to automatically copy the transactions from my main budget to my Christmas budget, but my logic still needs work!
That'd be awesome to have it done automatically! ~BenB
I laughed so hard when Ben was justifying how he doesn't need to fund his Appliances category! I thought it was hilarious, especially given the fridge situation! :D Ben, I'm sure you'll be able to roll with the punches and cover that spending once you do need to replace that fridge, so I'm not worried about you. But I just found your somewhat logical explanation so funny! :D
One of my problems is one mentioned at 7:00 about auto expenses and savings. Is it a type of ADHD or something? Everytime I get a paycheck I tend to go way too forward with some future expenses for example my car insurance this will be my first time saving for that annual expense it won't be due til April and I could fund it twice a month to meet my goal but I do it first thing I get paid and then I realize I don't have enough wiggle room for other expenses but it gets me frustrated because I feel like Im not getting ahead but like this guy said it's ok to spend from there as long as I refund what I spent. It's just a pet peeves i guess idk
Btw Ernie, I totally relate to the Housewares struggles! Our category used to be called 'Things for Home,' which is way too vague. Now I renamed it to "Houseware (Things for Home)." Massive improvement! :D
I have a category called Household Purchases under Personal/Quality of Life. And another category called Home Repairs/maintenance, under Housing.
I have tweaked my categories so that when I run reports, everything makes sense.
I think I once had one called “Home Stuff”. LOL
Need to say I enjoy the show before I could not Save any money and now the first of the month i can pay my rent and all my bills its nice to have peace if mind and money in your bank account
Guys, this episode made me chuckle. Maybe there is something wrong with me, but I recently (prior to this video) anguished over the differences between how to save for things like shingles, a broken appliance, and new things added to the house or inside the house. Why? Because I want it to be clear and easy to explain to myself and my spouse. Clarity helps me make better decisions. So, here is what I came up with. See if it helps.
I have a home property group that quantifies everything associated with that specific property. If I move to a new property, I would establish a new budget for that property. However, the furnishings would come with us. Unless a very special case, the appliances would also stay put. They serve the property in that respect. In that category group I address the dilemma you spoke about in the video.
Sub category "Property Improvements" are anything that adds to the property (new circuit for the EV, new addition, a new contribution to the structure like insulation to a very cold Nebraska winter pole barn gym setup, or a new type of appliance).
Sub category "Property Maintenance" is maintaining the existing property (replacing shingles, replacing bad windows, fixing the numerous things the boys break :(, appliance breakdowns, etc.).
Home improvement can be planned for: you get to choose when to add. Home Maintenance is far more unpredictable except that boys are predictably destructive!!!!
We also have a furnishing category since all those things will either go with us or be sold separately of the property. I used to budget for appliances but ultimately decided that they serve the property and they need maintained or replaced when broke (still maintenance cost unless we really need to borrow from the improvement category).
Why does it even matter? Well, because I can save for one as a goal/target, and the other category I sink for the "true expenses" as you refer to them. They will happen at some point. This clarified my thinking. I hope it helps you or someone else. Love the content.
You're absolutely right-clarity helps make better decisions. I think that's why it's so important to regularly go through your categories to see if there's anything you can do to increase clarity. Appreciate the thoughtful comment! ~Ernie
I would like to see an update to fresh start because I am thinking of this.
So glad you asked! I did a fresh start recently and Ernie and I just recorded an episode to talk about it. We're a little ahead, so I think that should drop around the new year. ~BenB
Until then, you might like this old episode.
ua-cam.com/video/0ohE9fLSrLQ/v-deo.html
Impound accounts are a big no no for me. I moved to a new state and when I got my loan, I got my estimated closing cost and saw the impound account and told the lender that I do not need it. They were all confused and tried to convince me that it was the best way to go. Apparently, (and I have confirmed this with a few sources) it is very rare here, in this state, not to have an impound account. I put my foot down, asked if it was a legal requirement, it was not and asked if they required it to lend me money, they did not. So they eliminated it and now I pay my own taxes and insurance. Funny thing is, one year later, I was expecting my property insurance bill and it didn't come. I contacted my agent and he told me they sent it to the lender. I told him I do not have an impound account and he was shocked. It was the first time he knew anyone that direct paid their insurance/taxes. So my sources were correct that impound accounts are the norm here.
Instead of Housewares we have called it Household. It also is where we take paper towel, Dishes, Linens. Everything that isn't Groceries. Then we have a Large Purchase & Home Decor for Furniture, Paint, Etc.
With the Christmas category, don't forgive entertainment and eating out while shopping, (because such will happen.)
That is such a good point! If Christy and I ever Christmas shop together, we're most definitely going to eat out and get some coffee! ~Ernie
True Expenses... so sinking funds? Haha I'm new to YNAB
I have driver license renewal every 6 years in mine
Can you take the blinds with you? You need to watch the movie Moving. I believe its with Richard Pryor and Dana Carvey.
I am going through my true expenses. I figured out that the renewal fee on my certification is 25.00 every two years. I am not making a category for that. I have a new rule: everything under 100 is a spending category, and over 100 is a true expense. (I am not having an extra category in my budget for 1.00 a month) Just my thought processes.
I like to keep all the small categories so I don’t have to remember when they’re due. I schedule in a future transaction for them and only fund them in the month I have to pay for them rather than giving them a target. One day I could try the same thing but just under a Spending category like you do. I’d like to be that chill but I’m not there yet. I guess it depends how excited you get by capturing all the data 🤣
Love you guys!
When you buy or sell a house it’s considered a fixture you expect to leave or expect to have when you move in - yep Ernie just said it. Nope Ben leave the blinds up! Haha This is a really fun discussion.
A question for the budget nerds! This year my husband was without work for half the year and is thankfully now employed again. We were nailing all of our true expense categories before that but they have been dwindling ever since due to rolling with the punches. Having a real problem saving towards true expenses at all now. Saving monthly to RRSP and TFSA which we don’t use but thinking we must be at the point where we are “spending/investing” more than we earn. Hating the thought of cutting the investing but mostly have yellow true expenses every month. Any tips or it’s as basic as that? Should be able to fund all true expenses each month? Thank you!
I got ynab 9 months ago and have had a hard time learning the details and following thru consitently- I have fresh started 2x. I've spent hours on videos and live tutorials- now months later, I dont remember it all. We sold our house in Apr & moved across country in that time so expenses have been all over the place and incr debt in finding a new place. Plus 2 married ppl think quite differently about money. Trying to wrap my head around it all and I feel overwhelmed. 😵💫
I understand that overwhelmed feeling! In these types of moments, it helps me to pick one small thing that I can do consistently (every day, every other day) until life slows down a bit. I always try to start small and build from there. ~Ernie
Love the video. I would really like to have a better explanation and deep dive into the new Loan accounts. The process and interface seems confusing. Any chance?
+10 on the Escrow account
We must have read your mind Vincent as we recently recorded an episode about the loan planner. I think it'll drop in January! ~Ernie
I just added a "Prudent Reserve" category. And it sounds Posh!
P - O - S - H POSH!
ua-cam.com/video/2BzjPukTLoY/v-deo.html
~BenB
@@YNABofficial 🤣
I would love to see how people categorize their budgets.
Hi Nerds, a topic I’d love to see discussed with Ben and Ernie is how to categorise Christmas or holiday time expenses in quite a granular way. For example, do seasonal grocery purchases go under groceries even though they are above and beyond my regular shop or do they come under the Christmas or Holidays category? When I’m buying more takeaway because I’m on holiday, does that go under Takeaway or Christmas/Holiday? When I buy some treats to bring to someone’s home that I’m visiting, and yet I enjoy them too, are they gifts, groceries or eating out? Then, sometimes I buy things for my regular life like clothes or household items while I’m away because I see something different than I could get at home, how should I categorise that? It’s not on my wish list let alone growing in my wish farm. Do I just roll with the punches and move money to those regular categories or are these better as Holiday category purchases where it’s just a chunk of money I spend from in what ever way I want? Love to hear how others do it.
I struggled with categorizing extra groceries for food I brought to events or for hosting, and I didn't like feeling like I didn't want to be generous in that way to avoid overspending my groceries, so I made a new "hospitality" category under my "others" group (along with gifts and donations). If I buy something on a trip that I would buy at home (clothes, decor), I just categorize it there. Something like a souvenir or groceries to take to a hotel room, I lump in with restaurants and attractions in a "dining/entertainment/other" category under travel (along with accommodations & transport).
It really all just comes down to what you want to have reporting on. So for something like the holiday food or takeaway - do you care more about seeing how much total you spend on groceries/takeaway (put it in the regular category and roll with the punches) or seeing how much the holidays impact your spending and prepare for it (create a holiday spending category or even group)?
@@persnickety99 thanks for sharing - that's a helpful way to look at things
If you show the house with the blinds...then the blinds go with the house.....unless the contract says you are taking the blinds and the buyer agrees. :)
True expenses because it’s not “if” something will happen, but “when”
What kind of target should I use for something like car insurance that I pay every 6 months? Right now I have a spending target since that's the only type that has a specific due date and the ability to repeat, but it just got messed up for my most recent bill since the due date landed in a weekend, so the bill was actually auto-paid the following Monday. That meant the spending target rules over to the next 6 month due date, and was immediately fully funded. Turn when the insurance payment came in, it was still considered fully funded for the next due date. :( Any thoughts on how to handle this and other expenses like it (yearly gym membership, vehicle registration, etc) in terms of the types of targets to use?
I don’t use due dates in the goals. It always seemed to be off. I make my bi-annual and annual payments as a monthly payment and leave them that way.
For "Housewares", we have "House Stuff"
I enjoy these conversations. I'm trying to embrace YNAB, but it's still a little overwhelming. Im still trying to wrap my head around not forecasting. Definitely a residual Every Dollar habit. 🤦🏾♀️ Thanks for sharing this topic. 😉😊
It also took me a while to get used to not forecasting. In fact, I completely gave up on YNAB after my first attempt, but I sure am glad I gave it another try because eventually things clicked! Don't hesitate to reach out if there's any way we can help! ~Ernie
Could do a whole episode on budgeting months in advance?
Thanks for the suggestion, I will pass it along!
Yes. I struggle with staying a month ahead. I think because i get comfortable. But I'd love hear about people's process for budgeting out further. How they get there and how they stay there. I love hearing about the process and habits/routines related to this.
I have a renewal category for renewing passports ( I have 2), my national ID card and my driver's license. It only comes up every few years but the 500$ or so it costs me would be a pain to pay all at once and by funding it really far in advance I can contribute such small amounts that I really don't feel the 15$ leaving my account each month.
Prudent reserve is how AA (Alcoholics Anonymous), and I guess other 12 step groups, call how much money they save to make sure they can run if income stops.
Called prudent because the groups should not save too much money.
Our state bills us personal property tax, for the cars. We pay under $300 a year, and yes I save for it.
Hi guys, New YANBer here, 👋, i'm trying to make the most of my savings (like any euros put toward non monthly expenses or even for next month) by puting them on a saving acount (where they get rewarded). But when i make the transfer from my checking to my saving account the amount available in the category goes back to 0€. Should i make a separate budget with only my non monthly expenses linked to my saving account to be able to see how much i really have available in each category or is there a better way?
If this is a good way to do it is there a possibility of copying the categories (and emojis, what a work 😂) from one budget to an other?
Thank you for your tips and tricks, it does help a lot!!
Ok, so I am 8 minutes in..tax return was just mentioned. Does anyone actually get a tax return after their kids are over 17? We went from getting about $2,000 back to owing about $4,000 since my “kids” are now 18 and 22 (one married and I’m not claiming).
How do I get a tax return again? At least a small one would be better than all of a sudden owing $4,000 now. I know I can change the amount I have withheld and all that stuff..but it still the same..I’m paying more taxes. I guess that’s just what happens when your kids are older.
You are totally in control of how much tax is withheld from your paycheck! Talk to your employer about increasing your withholdings to be sure you pay enough in taxes. ~BenB
@@YNABofficial I know I can do that. I am just saving it in my bank account instead (in YNAB it’s my Taxes category…so I can keep the money instead of the government) . I just mean that I have to pay thousands more than I did just a year ago :( I used to get a refund and was able to put that aside for vacation. Now I think I’ll be paying about $4,000. Big difference. I’ve thought about putting more into a retirement account, or my son’s 529 tuition fund, but that is still more money out of my pocket.
Don't replace the fridge Ben! It's an easy fix just UA-cam it. I had the same problem happen to mine, for me I just had to clean out the filtration system because I had ice🥶 from the freezer blocking the return
Everyone needs an emergency fund. No matter what you call it... Salary replacement, prudent reserve, or life happens cushion. At least for me that is.
Wait so it takes y'all a month and a half from recording to posting? I don't understand how it takes that long.
We like getting ahead in case we ever need to roll with the punches :) ~Ernie
It doesn't take that long to post, most video creators record content a while before posting. They can also record several videos in short succession, and have videos on hand to upload while they are on breaks so viewers get the same regularly scheduled content. It's very common practice.
I keep eating my true expenses...:(
The home discussion is pretty interesting. I’m always considering which types of things should be grouped together or have their own category or whatever. It’s a thinker lol
Also I just want to see your budgets visually 😅
Home goods 😂
Hey here's an awesome idea for YNAB - don't add any new features and double the price!