My wife and I have just started using the YNAB (You Need a Budget) software to start budgeting. We’ve tried budgeting in the past and it has never worked out. We continually spend more than I make, and I am forced to take on side jobs to make up the difference. This time, though, I think things are going to work out.
The key to YNAB is this: you give the money you currently have a job, and then you make that money do its job. There’s flexibility, though, so if one job takes more money than expected, you can allocate resources from another job to help out. You don’t need to forecast your budget into the future, you just need to assign a bit of money every month to be in standby for future needs like medical expenses and car insurance.
We started on Sunday, and already we are making better decisions. Our money has a mission, and so do we now, so we’re on a new path of financial freedom. I’ll do a follow-up post after a few months to let everyone know how much we’ve saved or how our financial situation has changed.