Money is made to spend. We all want something, and that something usually costs money. Some of the "wants" are fleeting desires, spurred by mood or peer pressure or perhaps just a whim. Other "wants" are genuine desires and items or experiences that actually add value to your life. Whichever it is, Jesse argues that you should wait. Wait before you buy anything, even the genuine wants. For one thing, waiting helps you parse out the genuine from the ephemeral. Jesse keeps a running list of wants ...
Mar 09, 2020•5 min•Ep. 419
There's a cliche in TV and film whenever something bad happens in a crowd of people, inevitably someone in the crowd shouts "why doesn't someone do something !" This is usually the cue for the superhero to enter stage right. We hear this sentiment all the time, not just in bad cinema, but in real life. Anytime a problem reaches a level of widespread concern -- whether it's a local neighborhood issue or a national one -- something must be done about it. Some problems have no easy answers, and we ...
Mar 02, 2020•4 min•Ep. 418
They are prepared for emergencies, for setbacks, for unexpected life changes. In fact emergencies don't seem to happen as often to them. YNAB'ers are a lucky set, it seems, but maybe there's more to the truth than a roll of the dice. Survivorship bias is a logical fallacy in which you focus on a group of people or things that made it past a selection process, without considering those that failed. This bias can lead to a number of erroneous conclusions. In finance, survivorship bias occurs when ...
Feb 24, 2020•5 min•Ep. 417
In episode 411, Jesse decried the ubiquity of credit cards and the fact that they enjoy a number of benefits that plain old debit cards do not... at the risk of getting yourself in debt. Since then, he's learned of a few strategies for managing fraud risk with debit cards. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com Also, go to https://www.youneedabudget.com/bootcamp/ to sign up for the YNAB Debt Bootcamp!...
Feb 17, 2020•5 min•Ep. 416
Jesse admits he's got an itch to scratch. He likes to invest gamble in the stock market from time to time, using an app that allows him to trade at the swipe of a finger. At least he's honest -- it's gambling with fun money, not investing. And that's the key. It's money he can afford to lose, and it's not much. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com Also, go to https://www.youneedabudget.com/bootcamp/ to sign up for the YNAB Debt Bootcamp!...
Feb 10, 2020•6 min•Ep. 415
Wealth is not a dirty word. After all, wealth can allow us to do many interesting and fulfilling things with our lives. At the very least, it provides options , opening up the range of possibilities before us. Simply put, wealth can allow us to live the life we want to live. The only problem is that the accumulation of wealth is often followed by increasing expenses. Some of these are obvious -- a bigger, newer house usually costs more than a smaller, older one -- while others are insidious. A l...
Feb 03, 2020•6 min•Ep. 414
Save money for known future expenses, or pay down debt? It's a challenge many people face while trying to eliminate their debt. It's a conundrum too -- you could take your savings and pay down debt now, or hold onto to those savings for the new tires you know your car needs next month, or the Christmas gifts you want to buy for the family. If you do that, though, the debt balance stays the same while you continue to pay interest... Jesse argues that optionality is the key here. Obeying rule #2 -...
Jan 27, 2020•5 min•Ep. 413
Jesse reflects on a Senate bill -- now signed into law as the Setting Every Community Up for Retirement Enhancement (SECURE) Act -- which will require a greater amount of employers to offer 401(k) plans to employees. The new law also makes it easier for annuities to be included in 401(k) offerings by easing the fiduciary rules around fees and expense ratios. 401k) plans are excellent vehicles for saving for retirement because they allow employees to put away a lot of money every year -- up to $1...
Jan 20, 2020•8 min•Ep. 412
For better or worse (probably worse), credit cards are a major part of our financial world now. Cash is becoming less and less convenient to use every year, and debit cards continue to lack the same level of fraud protection that credit cards enjoy. This isn't coincidence either. Jesse attended a "payments trends" conference in 2019, where the main topic was how to make payments easier, to remove as much friction as possible from the process of buying things. Why? Simply put, when you spend more...
Jan 13, 2020•11 min•Ep. 411
It's time to blow it all up! Every January, Jesse takes time with his family to "blow up" his budget and all the assumptions that drive it. He takes a fresh look at the dollars in the budget, and starts to question everything. Need to set aside $400 for a new set of tires in March? That's a responsible Rule #2 line of thinking. But the burndown is your chance to think deeper... do we even need a car? Could we sell it and ride our bikes to work instead? This is your time to think big, re-evaluate...
Jan 06, 2020•6 min•Ep. 410
If you made it through the last few weeks, you know why Jesse hates debt and why you should too! Start the New Year by putting those feelings into action. Jesse has created a "debt bootcamp" for YNAB users to help you get serious about getting rid of your debt for good. Best of all, it's FREE for all YNAB software subscribers. The Debt Bootcamp will be an intense, 8-week challenge to get rid of as much debt as possible. The camp will be run through a private Facebook group where you can stay acc...
Dec 31, 2019•6 min•Ep. 409
The corporations are playing a game, and you can't win. So opt out and stop playing the game! In the part 4 of the "Why I Hate Debt" miniseries, Jesse explains how behind every credit card is a clever system of points, travel miles, and other "free" rewards designed to keep you spending and in debt. Credit cards are a very profitable industry. Would banks and finance companies be giving away rewards if they weren't making a profit from it? Of course not! They've got the data, they've studied the...
Dec 30, 2019•9 min•Ep. 408
Jesse hates debt, and you should too! In Part 3 of anti-debt miniseries, Jesse argues that debt is not just a drain on our cash flow and creativity, it also restricts our future opportunities! The burden of debt keeps us from realizing our full potential in many ways -- starting a business, taking a lower paying job for more fulfilling work, moving to a new state or country -- often in the early phases of life when we are most energetic and open to growth. Sign up for a free 34-day trial of YNAB...
Dec 23, 2019•9 min•Ep. 407
In Part 2 of the Why I Hate Debt miniseries, Jesse explains why debt is a non-negotiable for him, and why is should be for you too. At 22 years old, trying to finish his Masters degree and expecting his first child, Jesse found himself caught between two non-negotiables: 1.) Living without debt, and 2.) Allowing his wife to quit work to focus on raising their child. The problem? They didn't have enough money to last until Jesse started working his new job after graduation, even living a very fru...
Dec 16, 2019•7 min•Ep. 406
Jesse hates debt, and you should too. Debt service constricts our cash flow, limits out ability to do other things like savings and investing, and generally introduces more stress into our lives. In this first part of a mini-series on debt, Jesse makes a case for living completely debt-free. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Dec 09, 2019•5 min•Ep. 405
Some of you may be thinking, YNAB sounds great, but what if I don't get a regular paycheck? How am I supposed to budget with that? Well, first off, you definitely need a budget! Planning to fund your expenses in future months becomes more critical the more variable your income is. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Dec 02, 2019•7 min•Ep. 404
Jesse is thinking about launching a separate podcast to discuss small business, internet marketing, and how you can use YNAB to manage your business cash flow, and he wants to know what you think! Would you be interested in a business-focused podcast? What kind of topics would you like to hear about? Email Jesse at podcast@youneedabudget.com and share your thoughts! Sign up for a free 34-day trial of YNAB at www.youneedabudget.com...
Nov 25, 2019•3 min•Ep. 403
Jesse asks the most important question about your reasons for getting out of debt, saving money, and achieving your financial goals. Why? Why do you do it? What's the reason behind the goals? If you could write a mission statement for your life, what would it say? Answering the simple question "Why?" might be the most important thing you do after you complete the blocking and tackling of paying off debt and building an emergency fund. Sign up for a free 34-day trial of YNAB at www.youneedabudget...
Nov 18, 2019•4 min•Ep. 402
"FI" is an acronym that has steadily grown in popularity over the last decade, though the concept is much older than that. It stands for financial independence -- some people call it early retirement (the longer acronym FIRE stands for financial independence, retire early) -- but the idea is simple. Live below your means, drastically increase your savings rate and accumulate enough wealth to "retire" or perhaps better said, until you can do what you want to do. Time and savings rate are the key ...
Nov 11, 2019•9 min•Ep. 401
It's common to set milestones for paying down debt. They're usually big, round numbers like $500, $1k, $5k, $10k. At the end of the day though, the goals are arbitrary. It's just a number, a stepping stone, toward the greater goal. So if the day to day grind of fiscal responsibility is getting to you, change your milestones! Maybe it's $749, or $362.54. It's all arbitrary, right? Have fun with the game, and make it work for you. Set a new milestone -- whatever you like -- and celebrate when you ...
Nov 04, 2019•6 min•Ep. 400
How do you order your categories? What's on top? What's on bottom? And how did you decide that? Categories are easy to order once you understand your priorities. Rent, utilities, food -- these are non-negotiable. You can and should, however, drill down into the details of each category and ask yourself whether you could live without some of the expenses in that category. You need utilities to live, clearly, but if pushed, what would you keep and what would you cut? Could you live without interne...
Oct 28, 2019•6 min•Ep. 399
Why do we become desensitized to the upticks in price of just about everything? Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Oct 21, 2019•5 min•Ep. 398
"We could spend less if we wanted to." Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Oct 14, 2019•6 min•Ep. 397
New feature alert: two factor authentication Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Oct 07, 2019•4 min•Ep. 396
Everyone is getting into the lending money game. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Sep 30, 2019•5 min•Ep. 395
Jesse discusses payroll advance apps. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Sep 23, 2019•7 min•Ep. 394
Jesse discusses payroll advances in relation to age of money. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Sep 16, 2019•7 min•Ep. 393
Jesse goes back to basics and breaks down YNAB's Rule Four: Age Your Money Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Sep 09, 2019•9 min•Ep. 392
Jesse goes back to basics and breaks down YNAB's Rule Three: Roll With The Punches Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Sep 02, 2019•6 min•Ep. 391
Jesse goes back to basics and breaks down YNAB's Rule Two: Embrace Your True Expenses Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Aug 26, 2019•7 min•Ep. 390
