We’ve received quite a few questions in our support queue asking how one goes about using a gift certificate they’ve received (from a very thoughtful, well-meaning, generous person).

Here’s how it goes.

1. Click on the Purchase link at the top of the YNAB Site.

2. Click on the Checkout with PayPal button:

3. Log in to your PayPal account:

4. Click the Enter gift certificate link:

5. Enter the gift code you received in the original gift certificate email received from PayPal:

6. Click ‘Continue’

You should be all set!

Ed sent this to me a few days ago:

In the 80’s some years before financial programs hit the consumer market I have had the yearn to use a system to manage finances. I started with spreadsheets 1st paper then computer. When Quicken came out I became an avid user. After several years I began to realize that Quicken was really only good at telling me what happened and not good at budgeting and managing. I began a thorough search and tried no less that 10 other programs.

It was not till I found YNAB that I really thought that it did everything I wanted. It still has some growth possibilities especially in the reporting area, but it is actually exactly what I needed to take control of my money and has made me capable of preparing for emergencies before they happen. It has also allowed me to help others that are not as financially prepared. Thanks for your software. I am looking forward to 3.0.

The Golf Game

Three years ago I left the world of Public Accounting and struck out on my own. As a part of that, a friend introduced me to golf.

The magic with golf is in the fact that you only need to do it well about five percent of the time, but that five percent is so satisfying that you endure the other 95 percent of the game. Especially when you’re just starting out.

Beginning in the Summer of 2007, after several days of buckets at the driving range, I took to the course for my first nine holes. I don’t remember what I shot — I think it was a 65. The score didn’t matter to me though — I was hooked! I went home and began building a spreadsheet where I could track my scores every time I played. A few days later I figured there must have been a better way, so I Googled a bit and found StatDoctor. Since that day, I’ve logged every single round.

For the first twenty rounds or so I just tracked the score, but I quickly saw there was value to be had in gathering a bit more data. So for the past three years I’ve been tracking my score, bunker plays, fairways hit, greens in regulation, and number of putts per hole. Just recently I started tracking the distance of my drives.

Going to the range and pounding out buckets of balls works. It gets you to a point where you’re making some pretty good shots. But knowing exactly what I need to work on, where the weak spots are, what strengths my game has…that makes my practice and work extremely effective because I am more aware of what I should be working on. Just hitting buckets for the sake of hitting them…there’s a better way.

A month ago I had a consistent shot at 110 yards with my 54′ club, and 85 yards with my 60′ wedge. I saw that I needed to dial in some more distances because my greens in regulation were really low when compared to my fairways hit. I went to the range, scoped out distances at 75, 60, and 45 yards and went to work. I hit an entire bucket toward a puddle that was 45 yards away. Now when I find I’m at that distance, I know exactly what to do.

Here are my number of greens hit in regulation for 2009.

Since I began tracking in StatDoctor, my +/- par (for me, so far, they’re all par+):

Tracking my golf scores so meticulously (and consistently) has given me more desire to practice, more insight into what I should practice, and much better results than I could have otherwise expected.

The Bench Press

Three days ago, on October 12, 2009 I was issued a challenge:

In January, perform as many bench press reps at 210 lbs as possible, spread across three sets.

There’s a good way, and a losing way to go about doing this. At the risk of tipping my hand to my challenger by way of this blog post, I’m not going to reveal everything I’ll be doing to make sure I’m ready to dominate come January, but here’s the gist:

1) If I’m going to win this challenge I’m going to need to increase my strength. For my starting point (first data point), I found my 1 rep maximum (RM) this morning. I’m not going to divulge what it is, for competitive reasons! My 1RM is going to be tracked meticulously until the duel is done.

2) Once a foundation of greater strength is…forged…I’ll need to make sure my muscles can perform optimally for endurance, since this is also a muscular endurance test. I’ll make attempts every other week and log my performance in my workout journal (along with what I ate beforehand, how much sleep I had, and my overall feeling prior to the lifting).

3) The fact of the matter is that I’m going to need to gain some weight because the strength’s not going to come nearly as much from my current build. On New Year’s Eve of 2008 I wrote:

Physical – No soda this year. H2O, here I come! Also, I want to get my BFP to 9%. In years past I’ve also prescripted some workout for the year and about 90 days into the new year I’m already tired of the workout and want to do something else. So I’m shooting for a results-oriented goal here of a change in bodyfat, rather than a task-oriented goal. Let the task change as necessary/desired, I know the result I want to get.

I’ve managed not to drink any soda this year, and my BFP is down to 11% (from 15% at the beginning of 2009), but yeah, that’s over. Because of the duel, that resolution re: the bodyfat is going out the window.

So how will I gain weight strategically (and with clean food)? I’m employing Lose It. It’s the greatest iPhone application in existence:

I’ll track every calorie in, calories burned, and my bench press (strenght/endurance) results.

The working out will be simple because that’s done an hour a day and then I don’t have to think about it anymore. This thing with the food is going to be tricky and will likely prove to be the more difficult part of the task. That is why it’s so critical that I track religiously so I can stay motivated to eat clean, frequently, and a lot.

Your Finances

If you want to improve anything about your finances then you need to pick some meaningful data points and begin tracking. Make some goals and then record data consistently until you reach your goals. You’ll find that tracking your results provides you with useful information for better decision-making and keeps you motivated to stay your course. Keep things simple and actionable.

You live in a world that isn’t real. You’ve been basing your financial decisions on everything you’ve seen around you, and you’ve allowed yourself to believe that what you’re seeing is true. What you’re seeing is very rarely true.

This may sound harsh, or insensitive, but the guy that just rolled up two doors down with the brand new lawnmower is going to be paying for that thing (twice over) for five years.

The lady whose house is decorated immaculately is late on her credit card bill.

The parents whose kids have all the latest toys are up to their eyebrows in debt.

The young, successful salesman across the street refinanced his home three months ago to free up $400 in monthly cash flow. He has no idea where that $400/month has gone.

The doctor is working himself into oblivion, but can’t make headway on his student loans.

The husband that bought his wife the new car she’s been wanting is now sleeping less. He doesn’t know it, but his wife secretly wishes he hadn’t bought it.

The happily married couple simply avoids the topic of money.

You don’t see any of that, but it’s all there. And, unfortunately, you’ve lived most of your life making decisions based on assumptions that are entirely false. The people you see around you, and who you aspire to be are all broke. They’re all stressed.

There’s a scene in The Matrix (the original, good movie, not the sequels) where Neo is just finding out a bit about the Matrix. He knows enough to know that something with the world he’s always known isn’t right. Morpheus gives a great line:

Like everyone else, you were born into bondage.

Morpheus is talking about the fact that all Neo has ever known is the Matrix. A façade. A fake life. There’s nothing real about it. In a lot of ways, until we kick some seriously bad financial habits and starting doing things that are liberating (I won’t say, *AHEM* exactly what those things are), we’re stuck. Zero progress is bondage — period.

To end the scene, Morpheus gives Neo a choice of two pills. If Neo takes the blue pill, he’ll wake up and not remember anything about their encounter. He’s allowed to push a big Reset button.

If Neo takes the red pill, he gets to see “how far the rabbit hole goes.” He’ll get to see the reality for what it really is.

Since Neo is the hero, and since he chose the red pill, what type of parallel do you think I’m going to make? The red pill — the REALITY pill, is your budget. Nothing about what you see around you is true. The only thing true is what you care about, what you bring in, and what you let flow out of your life. Your values are real. Your perception of the financial situation of others around you is not real.

Once you’ve taken the red pill, your financial potential is greatly enhanced. Please take a few seconds to view this clip from a classic:

Once Neo saw reality, he was able to control his own destiny. Could the similarities be any clearer here? Once you get a strong dose of your own reality (through effective budgeting), you’ll also be much more empowered to control your own financial destiny.

What’s the financial equivalent of stopping a speeding bullet in mid-flight? I have no idea. But my guess is that you can do it.

Oh, and in your financial world, you are The One.

Karen wrote in a bit ago with the following fantastic story:

My family has been using YNAB for the last 3 months and the changes we’ve seen are phenomenal! I thought it would just help us to get on track and save some money. I never thought it would be such a wonderful tool for teaching our children the true value of stewardship. Our family budget is known and understood by all 6 family members- mom, dad, and four girls ranging in age from 16 to 8. We go over everything with the children so they understand how much there is to start with and where it all goes. I wanted to share with you some of the fruits of that…

1. The kids wanted to donate to the [removed] fund and chose to take 20% from our “fun money” in the budget. (a movie ticket)

2. All four girls gave up their allowances for one week to give to the [remove] research fund. (not a lot of money but a lot of sacrifice)

3. Each of my girls has a budget of 50.00 for new clothing this fall. We live in an area where most of the kids are wearing sweatshirts from the mall that cost that much! My girls scoured for the best deals and focused on needs as opposed to wants. My 8 year old made it to the checkout and was 12.00 over budget and promptly stopped the clerk and asked if she could remove some items. She then turned to me with a great big smile and said, “I did it mom! $48.48! I’m under budget!” The clerk was hugely impressed.

As am I!

Just imagine how this education will pay off for the kids down the road.

My golf game will be doing just fine and I’ll be plodding along, slowly chipping away at a stroke here or there. This year has been the year of my fixed drive, which I’ve been enjoying quite a bit. Where I used to have a low, line-drive hook, I know have a high slice. Head down, swing through, and the slice goes away.

The strange thing is that as I seem to be doing well, I get a bit overanxious and my swing speed, particularly with my irons, starts to pick up. I lose a bit of my rhythm and end up pulling the ball. It’s as if my hands just pick up speed and I come around to quickly. Whether it’s my hands accelerating, or my hips slowing down…they get out of sync.

Just when things are really starting to roll for me, like when I was two over after eight holes…all I needed to do was par the last hole and I would beat my personal best by a stroke. I doubled it. I pulled my nine-iron on the approach shot and then had an indifferent chip shot, forcing me to two-putt.

When the pull starts creeping back in, I always go back to the basics:

How’s my grip?
Are my hips active on the backswing?
How’s my rhythm? (The solution to any rhythm problem I have is to always slow down).

If I can revisit each of those and do some checks, the pull goes away and I get my nice, normal (very playable) draw.

And so it is with money. It pays to revisit the basics when things start to go a bit off course. Are you finding that your EGG (a term Erin, YNAB’s online coach uses for Entertainment, Gas, and Groceries) has increased undesirably? Are you slacking on your Rainy Day funding of known but inestimable/unforeseeable expenses such as car repairs and medical expenses?

Has your debt-paydown intensity lessened?

Go back to the basics. Revisit your budget. Make sure you’re tracking every dollar. Ensure you’re living on last month’s income (only!). Fund your Rainy Day categories dutifully. Roll with the punches only when absolutely necessary.

This isn’t a tactical savings tip, but I think every once in a while we all need to be reminded that course corrections are a part of the journey — not failures, just fixes.

And this has nothing to do with building your downline or firing your boss to make 5k per week! (Insert intended sarcasm toward the end of that last sentence).

Some people in our neighborhood are actually doing something that’s helping them save significantly on their dinner bill and help them save time in the process.

Dinner groups.

Julie and I joined one recently and last night was our first experience picking up the dinner from our friends and enjoying (every bite of) it. Julie loved the fact that she didn’t need to prepare dinner (she was able to do a ton of other things on Her List) and I loved the fact that Julie loved it.

How does a dinner group work?
You find three other families nearby to participate. Each family is assigned a day of the week (excluding Friday and the weekend). When your assigned day comes, you prepare enough dinner to feed your family and the three others. The other families come by to pick up their dinner and you’re done.

On the other three nights of the week, you simply go over to the assigned family’s house and pick up your dinner.

There are variations on the idea. You can do only main dishes and worry about sides on your own. You can do one dish and one side, you could add dessert… we’re actually only doing it on Wednesdays at the moment — so every fourth Wednesday Julie prepares a meal. On the other three Wednesdays, we receive a meal.

At first I thought we were doing this because of our recent belt tightening, but it’s bigger than that.

Monetary Benefits of Dinner Groups
When you’re making “bulk” dishes, you don’t end up with leftover (sometimes wasted ingredients). You don’t need to go to the grocery store nearly as often. You simply spend less on groceries. It’s phenomenal.

Consider the fact that if you make yourself aware of deals at the grocery store, you can really capitalize on savings by purchasing that sale item in bulk. Plan your meal around the sales and you’ll save even more.

Other Benefits of Dinner Groups
Instead of saving time by purchasing pre-made meals or eating out (both more expensive and not nearly as healthy), you’re still saving time, but enjoying excellent food. Can you imagine what other things you could accomplish if you needed to make dinner three fewer times each week?

The time it takes to make four main dishes instead of one is marginal. You quickly scale and your efficiency is there almost immediately.

Another benefit is that you can grow closer to your neighbors/friends who are participating. You’ll see them more frequently and will build a stronger, more meaningful relationship.

A Few Tips Regarding Dinner Groups
Make a great meal when it’s your turn. Our first meal last night was phenomenal and we thoroughly enjoyed it. The great part about cooking less is that when you do cook, you can pull out all the stops. A fancy ingredient that you wouldn’t normally use for just one meal now becomes easily justified because you’re making four times the normal amount.

Also, on the flip side, make sure you create a dinner group with families that have similar tastes/food standards. By that I mean, if you’re not the biggest fan of fried food, you may not want to organize with families that love it :)

It helps to find families of similar size, though it’s not required. You simply make enough to feed the largest family and smaller families will have a few more leftovers they can take as lunch.

Communicate well with the group. Be selective about your feedback and remember the golden rule :)

If you’re single, dinner groups make even more sense, since you’re likely to forgo cooking for just a single person, resulting in paying more for food that’s not nearly as healthy.

Dinner Groups: A Conclusion
They work. They’ll save you money. They’ll save you time. Give it a shot and please share any experiences you may have had with dinner groups in the past!

For those of you that have read The Wallet for a while, you’re probably well aware of the fact that Julie and I don’t own a TV. Neither of us owned one when we were single, and when we married, we just decided not to purchase one (we were busy…and needed a car).

About four months into our marriage, somebody felt bad for us and actually left an old TV, VCR, and even some VHS movies on our doorstep as a surprise. After I burned an entire Saturday afternoon watching The Abyss (with all of the commercial breaks, as this was before Tivo), we knew we had to be rid of the TV. Julie ended up selling it to someone we worked with and we went out for Chinese food.

(We would have refused the TV and returned it to whomever had been so generous, but to this day they remain anonymous!)

At any rate, since we didn’t purchase season tickets to the BYU football games this year (remember, we’re tightening the belt until launch), I’m having a very strong desire to finally purchase a TV — just for football season!

Sports are the only thing that keep people from ditching cable completely, I know that.

But do you know what’s kind of squelched my desire? Tangential purchases. Sure, a TV isn’t that expensive, but then we need the monthly cable cost…and I know I don’t want to watch commercials, so I’d need a DVR or Tivo…and then we’d need a piece of furniture on which to place the TV…and since BYU doesn’t show on ESPN every week, I’d need to make sure our cable package showed The Mountain (what, you’ve never heard of that channel?)…

At the beginning of the summer I purchased a very, very sweet Weber gas grill. It is a phenomenal grill. I love it. But I’ve needed to be very careful about the other purchases that creep in as a result of the grill purchase (a manly apron, some grilling books, a grilling tool set perhaps…a grill cover, etc.).

Most every purchase of significance comes with tangential purchases attached. The BMW? Premium gasoline. The golf clubs? Don’t even get me started there (it ends with a golf simulator in your basement).

I remember when I heard that the Junior/Senior prom tickets were $35 a pop. I was floored. Little did I know that the $70 for tickets was just a drop in the bucket: dinner, car, corsage, tux, pictures…

Porter’s now playing flag football. Guess who needed to bring corn-filled treats to the game last Saturday ($15 later)? That’s a tangential purchase.

I suppose the bigger the purchase, the greater danger you have with these tangential purchases. Think about your house for a moment…

I think I made my point :)

I thought I’d share this — keeping it anonymous though:

Things couldn’t be better. One billion tons of stress has been lifted off my shoulders…thanks to this program…I no longer worry about money…every dollar has a job…still have some tweeking to do to get things adjusted….food is a difficult one with 6 boys to feed…..you just never know how much they are going to eat….you do know they will eat…so with that I just input a set amount and KNOW I will have to adjust….so I don’t freak out when I need to adjust it’s a given….this is the first program that addressed that….NO your not a complete failure if you need to adjust….it’s life….once agian thanks for the support and this program…..I am NOT rich my any means nor will I ever be but this programs gives me a sense of accomplishment….work with what you have and be greatful….this program allows me the ability to see how greatful I SHOULD be….all my dollars have a job and all the bills are paid….thank you.

Very cool stuff.

Trent over at TheSimpleDollar wrote a fantastic, concise, tactical post all about substitutions that will save you money (and as I looked at the list, none of them required any more work than what you’re currently doing except perhaps a smidge more with foregoing paper towels).

At any rate, you should definitely check this out and implement at least two of them this weekend.