Jesse lays out a strategy for managing unknown expenses without continually dipping into your emergency fund. Traditional budgeting advice tells you to create an emergency fund for dealing with unforeseen expenses, but often people end up using their emergency funds for irregular, but foreseeable expenses -- things like new tires, new cars, A/C repair, etc. They don't happen regularly, maybe only every several years, but if you look into the future you know they are coming. For YNAB'ers that are...
Oct 12, 2020•4 min•Ep. 449
Jesse tackles the defeatist attitude some people develop that they are just no good with money. As they say, comparison is the thief of joy, and we should add, it's very misleading when it comes to money! Watching what other people do with their money isn't particularly helpful or relevant to your own situation. Bottom line, being smart with your money simply means knowing what you want your money to do, and allowing it do that for you. This is something anyone can do! Sign up for a free 34-day ...
Oct 05, 2020•5 min•Ep. 448
Recently someone asked Jesse about his thoughts on preventing lifestyle creep, a major supposed gremlin of budgeting. Jesse doesn't even like the question, and discusses why worrying about lifestyle creep is looking at budgeting in the wrong light. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Sep 28, 2020•4 min•Ep. 447
Recently Jesse received an email from a woman who claimed YNAB was really a program about mindfulness... just using money and budgeting as the entry point. So Jesse invited this woman onto the podcast to talk about the connection between mindfulness, meditation, and money. Welcome to Kathleen Slattery-Moschkau, a mindfulness expert, yoga instructor, and filmmaker currently residing in Madison, WI where she runs The Studio. The Studio: https://www.thestudiomadison.com/about-us-2/ Sign up for a fr...
Sep 21, 2020•31 min•Ep. 446
Let's face it, it feels good to buy things. That's not necessarily a bad thing, either. Spending on hobbies or other things that bring you value -- maybe a date with your partner -- makes you feel good for a good reason. However, from time to time we need to check the rationale behind our purchases. Maybe you intend to start a new exercise regime, so you buy new shoes and clothes and perhaps a new journal as well to document your progress. But have you actually started the program yet? Often sim...
Sep 14, 2020•4 min•Ep. 445
We're all familiar with the situation. A person reads a book, learns a new skill, or discovers a method, and gets REALLY INTO IT. Brimming with enthusiasm, they share it with their partner and try to get them involved, only to be met by reluctance and intransigence. The reluctant partner is a common trope, even when it comes budgeting! The idea that your partner is dragging their feet because they don't share your goals about budgeting and personal finance, however, is a false one. In Jesse's an...
Sep 07, 2020•5 min•Ep. 444
By popular request, Jesse flips through his office bookshelves and discusses the books he's read recently... and, well, some that he hasn't but is getting around to! This week he covers books in the "business" category, ranging from marketing, advertising, management theory, team building, and customer service. Many of these books have had an influence on the way YNAB operates and its success. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com...
Aug 31, 2020•12 min•Ep. 443
By popular request, Jesse scans though his office bookshelf and discusses the books he's read recently... and, well, some that he hasn't but is getting around to! This week he covers books in the "general" category, basically anything that isn't specifically about business. Next week he will cover the books on his business shelf. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Aug 24, 2020•13 min•Ep. 442
Jesse interviews a YNAB'er, nurse practitioner Naseema, about how she used YNAB and the four rules to pay off an extraordinary $200k of debt in just under two years, all while going through some tough life transitions. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Aug 17, 2020•19 min•Ep. 441
YNAB'er Elizabeth wrote into the podcast asking for clarification of Rule Three -- can you use it too often? Simply put, If you aren't reaching your goals, Jesse says, you're misusing Rule Three. If you aren't saving the money you thing you should be saving, then Rule Three has become an escape hatch for your budget, instead of an empowering tool. Scarcity is a powerful motivator for budgeting. Embracing the fact that you have limited dollars, and that you cannot rob from your future self to pay...
Aug 10, 2020•6 min•Ep. 440
With everything that has transpired this year, we could all use some positive news. Today Jesse highlights a couple of positive stories from YNAB users who have managed to save money and stabilize their financial situation despite job loss and salary cuts due to COVID. Follow the four rules, and things will get better. Budgeting isn't the end-all-be-all, it's not the solution for everything, but it will help you make your financial situation better. Budgeting simply works! Sign up for a free 34-...
Aug 03, 2020•7 min•Ep. 439
In light of the terrible events that have transpired in 2020, YNAB is launching a new initiative to help those in need. YNAB is partnering with non-profit organizations that work with marginalized communities on personal financial and financial resource issues. YNAB is offering licenses for its software for free to these non-profits, so those in need can benefit from YNAB's powerful budgeting tools. If you work for a non-profit or know of one who could benefit from this program, visit https://ww...
Jul 27, 2020•4 min•Ep. 438
Jesse wraps up the Atomic Budgeting series, based on the ideas in James Clear's book Atomic Habits, with a look into how our environment shapes our decision making. The world is awash in advertisements — billboards, store displays, TV, YouTube, etc — which aim to subtly influence us to buy products and services. It's hard to avoid them, especially when you spend time in areas or websites where targeted ads can pique your interests and potentially cause you to buy things you otherwise wouldn't ha...
Jul 20, 2020•10 min•Ep. 437
Jesse discusses James Clear's "laws" of how people make lasting changes to their behaviors and how they might apply to the YNAB'er looking to improve their budgeting habits. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Jul 13, 2020•10 min•Ep. 436
In the third installment of the atomic budgeting series, in which Jesse applies the principles in James Clear's book Atomic Habits to budgeting and personal finance, Jesse discusses the concept of becoming the person who has the traits you wish to have. Typically when we think of making personal change, we set goals and then a process to achieve that goal. Yet, once we achieve the goal (if we do), does the change we made to achieve it continue on? Are the new habits long-lasting, or do we revert...
Jul 06, 2020•7 min•Ep. 435
Jesse continues with part two of the Atomic Budgeting series, applying the concepts in James Clear's Atomic Habits to budgeting and the pursuit of financial freedom. One of the key concepts in Clear's book is focusing on building effective systems for achieving your goals, rather than on the goal itself. Goals are great things, but without a logical, replicable, and flexible system, you are unlikely to consistently achieve your goals. YNAB's Four Rules comprise a simple, flexible, and replicable...
Jun 29, 2020•6 min•Ep. 434
Jesse has become a fan of James Clear's Atomic Habits, in which Clear explains how small changes to your habits can build up to big changes in your life. Naturally, Jesse saw how atomic habits could work for budgeting too. So for the next few weeks, Jesse will be covering several aspects of "atomic budgeting," starting with the power of compounding interest. Atomic Habits by James Clear: https://www.amazon.com/Atomic-Habits-James-Clear-audiobook/dp/B07RFSSYBH/ref=sr_1_2?dchild=1&keywords=ato...
Jun 22, 2020•7 min•Ep. 433
Jesse and the YNAB team are excited to announce a new service: financial wellness for businesses and their employees! For any company, big or small, YNAB will educate your employees on the most important yet often overlooked aspect of financial wellbeing… budgeting of course. Financially stress-free employees are good employees. They are empowered, they have freedom to be creative in their life, and they are more productive as a result. This is a FREE service for the business. You can find out m...
Jun 15, 2020•6 min•Ep. 432
The attentive gardener notices the small things. The way plants grow, flourish, and wither on a daily basis. He knows that weeds are easily dispatched when pulled daily. The gardener plays a long game, but sees each move in detail. Budgeting is no different. The attentive budgeter notices small things, finds small efficiencies there, because she checks in often. She knows that it's easier to correct course when her budget is moving in the wrong direction, because she watches carefully and often....
Jun 01, 2020•4 min•Ep. 431
It's a common refrain in times of crisis. We must do something . But inaction is, in fact, always an option. Many times, especially when it comes to finances, it is a great option! Jesse reminds us that, in light of current economic conditions, it's perfectly OK to do nothing. Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
May 25, 2020•2 min•Ep. 430
There's something growing at the Mecham household... and it's in the backyard! Jesse confesses he spent a good portion of his paternity leave preparing a garden with a handful of chicks, fruit trees, and a garden full of asparagus, cantaloupes, and other goodies. As always, while exercising his green thumb Jesse was thinking about budgeting. Immediate gratification is rare in the natural world. Nearly everything worth having takes time, effort, and care to grow and develop. Chicks need to be fed...
May 18, 2020•4 min•Ep. 429
After receiving several questions about what to do with windfall money during times of economic uncertainty (like these), Jesse tackles the topic in today's episode. As always, but especially true nowadays, cash is king! Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
May 11, 2020•7 min•Ep. 428
Freshly returned from paternity leave, Jesse discusses how YNAB has handled the coronavirus pandemic as a company. As always, his focus and the company's focus has been on giving the best budgeting advice they can. Additionally, the YNAB team has written articles exploring how people can weather the financial storm in the wake of COVID-19. You can read the blog entries here: https://www.youneedabudget.com/blog/ Sign up for a free 34-day trial of YNAB at www.youneedabudget.com...
May 04, 2020•4 min•Ep. 427
Jesse examines how the recent panic buying of food, home goods, and other staples highlights the intrinsic value of certain things that we take for granted. When demand for historically safe assets like bonds and gold falls, yet demand for household goods like flour and toilet paper soar, it shines some light on the practical value of things. In short, you can eat flour, but you can't eat a bar of gold! In the future, Jesse encourages us to consider saving not only for future expenses and retire...
Apr 27, 2020•11 min•Ep. 426
Jesse muses on the impact the coronavirus will ultimately have on people and their habits. When society reopens, will people return to their previous habits? Or will they grow, having spent their time in isolation examining themselves and their priorities, their Rule Zero? Jesse hopes that people do use this time to reflect, to re-examine their life and rediscover their priorities, and, most importantly, write down the wisdom that comes from that process! Sign up for a free 34-day trial of YNAB ...
Apr 20, 2020•6 min•Ep. 425
Last week Jesse discussed the importance of Rule #1, giving every dollar a job. Rule one is always important, but in uncertain times like these it takes on renewed significance. Jesse has often talked about the rule before the rule, though, the so-called Rule Zero. Rule Zero is understanding what's important to you, why you're bothering to give your dollars a job in the first place. At the end of the day, to what end are you budgeting? What's the purpose? In the wake of the pandemic and economic...
Apr 13, 2020•4 min•Ep. 424
With the world at a standstill due to the COVID-19 pandemic, one thing is certain. We've never budgeted at a time like this! Jesse offers some comforting words in this time of crisis, and reminds us to follow Rule #1: Give Every Dollar A Job. Never stop budgeting. Even if it's only a week ahead, a day ahead, staying engaged and continually planning will give you the best chance to survive financially in these times, and, eventually, thrive. Budgeting is one area of our lives that we can control,...
Apr 06, 2020•8 min•Ep. 423
At YNAB there is a document called the Vision Doc, which spells out the "commander's intent" for the company, how to behave and act on the company's behalf. Employees must make many decisions on a day to day basis, but with a clear commander's intent they have the freedom to make those smaller decisions while adhering to the company's greater goal. It's useful to develop the same commander's intent for your budget. With a clear goal and aim for the budget, it becomes easier to make those small, ...
Mar 30, 2020•4 min•Ep. 422
Jesse reads an excerpt from the book The End of Average by Todd Rose. In the late 1940's the Air Force had a dangerous problem on its hands -- aircraft of all kinds were malfunctioning and crashing at alarming rates. The Air Force brought in scientist Lt Gilbert S Daniels to diagnose the problem. Daniels discovered that the Air Force had designed cockpits based on thousands of physical measurements taken from its ranks of pilots, then averaged. Daniels ascertained that despite the rigor and brea...
Mar 23, 2020•10 min•Ep. 421
We often talk about the budget as if it's a noun. Is it "in the budget"? Did you check the budget? When you treat the budget as a noun it takes on a rigid, inflexible quality, like the budget is set on stone tablets. But what if we thought about "budget" as a verb? As an action, an activity, budgeting becomes a process, a thing which can change and evolve with each iteration. Jesse discusses the importance of budgeting and not just setting a "budget." Thanks to Hannah who shared this revelation ...
Mar 16, 2020•4 min•Ep. 420
