Our success story this month focuses on building your YNAB Buffer. Mary A., from Washington State, started using YNAB Pro about three years ago and loved it as it was so easy to use.
I asked Mary how long it took her to save her Buffer. She said, “We just got it this summer so 2-3 years. I really didn’t even try to save for it until about three months before we got it together. It took me this long because we were in the process of paying off debt and wanted to finish that first. I also didn’t see the true benefit of having a buffer although I could see it would be nice to not be living paycheck to paycheck. We were already paying all our bills the first week of the month or as soon as they came in so I didn’t see a buffer would make that much difference in our financial lives.”
Mary went on to explain that life is very different now that she has her Buffer. She said, “For us it is more psychological. We had no problem paying the bills nor even paying them right away. But after we had the buffer, wow, I felt so much more secure, and more in control. And instead of paying even small amounts of finance charges we are earning interest as we have an interest bearing checking account. It was like I didn’t realize we needed it, but now I know we had needed it all along. It’s just very comforting to look at our budget and see that Buffer there. I feel like we can handle most anything that comes along now and do it without incurring any debt.
Finally I asked Mary to offer some advice to those who may not have their Buffer or may not see the benefits. “I’d say start throwing whatever you can into your Buffer category each month. Even saving a small amount will add up and as you see that happening you will want to put more into it. Cut back on any expenses you can…it’s only temporary and soon you will have your Buffer which will be so worth it. Knowing you are not living paycheck to paycheck anymore is very freeing!”
The big lesson here is to put something toward your Buffer each month. While you may feel your steps are small, they will add up, and eventually you will remove yourself from the paycheck to paycheck cycle.
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This is The Wallet. My name is Jesse Mecham, founder of YNAB. Here I focus on the YNAB methodology, software, personal finance, and more.
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Jeff
February 8, 2010
Great job Mary!!! These success stories are very motivational. I know the great feeling when you have a buffer.
FBCinvestor
February 9, 2010
We are about to hit our buffer this month. I love that I can pay any bill as it arrives rather than playing the game of “this one gets paid before payday and this one has to wait until after.” I chose to build the buffer before focusing on debt. We were literally down to our last $100 at the end of the month before starting YNAB so to me the buffer means less stress which gives me a higher quality of life. Sure, that means I will have debt for about 9 months longer, but I think it is worth it. Now I can focus on making my debt go away with the safety of knowing that my car insurance payment won’t cause me to go negative.
Sean
February 9, 2010
Awesome work & congratulations…We are just about to get to our buffer for the 2nd time….We had saved and saved to get our first buffer while we were living in the UK and for the first time in our married lives, did not have financial stress. What a change to our marriage – it let us focus on “us”. That was until we decided for work reasons to move to the USA – And while our buffer quickly evaporated, we were thankful that we had the knowledge to put the YNAB methodolgy back into place and determination to re-build our buffer, knowing the peace of mind that was attached to it.
We can’t thank Jesse, his team and the forum enough for getting our lives into financial shape.
Sean.