I’ve been wanting to do this for a while.
We’re going to change the order of the Rules in the YNAB Methodology. You’ll see the change slowly rollout as we update the site, software, tutorials, etc.
Rule Two will be Rule One.
Rule Three will be Rule Two.
Rule Four will be Rule Three.
Rule One will be Rule Four.
Why?
1) We were scaring people by putting Stop Living Paycheck to Paycheck as the first Rule! YNABers know that it takes a while to get to Rule One (and it’s so worth it!), but many passersby do not! They see that immediately thing YNAB won’t work for them. Quite the contrary of course.
2) The new order promotes a logical progression from newbie to YNAB Zen Master. You start by just giving what you have a job. No more, no less. Then once the NOW dollars are accounted for, you begin looking ahead to those future expenses. Finally, you need to make sure you stay on the wagon and Roll with the Punches — continuing to Give Your Dollars Jobs and Save for a Rainy Day. Once you have that under your belt, you can begin working on your Buffer, where you can finally Stop Living Paycheck to Paycheck.
Anyway, I think it’ll be easier to explain to newcomers and I’m excited for the change. You’ll see it start to roll out in stages fairly soon.
Of course this changes absolutely nothing about the software :)
Hi Jesse,
Great idea and make a lot of sense to me – the first goal was like “oh men, when I’m going to accomplish that one” – I am a newbie on YNAB – really on my fourth day of test.
Your product is really great technically and all the idea behind it – its already helping us a lot.
Hi Jesse,
I like the changes to the order of the 4 rules. This make perfect since in your sequence of the rules. When I achieved rule 4 “Stop Living Paycheck to Paycheck”, I am now an “YNAB Zen Master”. (Great marketing phrase) I am in my four full month of using YNAB and I amazed to see how fast my savings are growing.
Thanks YNAB for making budgeting fun.
Thanks,
Jeff
Agreed; it’ll be annoying to get used to the new numbers but for someone new coming onboard the new numbers will be a lot easier. Are you going to try to update the forum rule references? Perhaps just add a ‘* Rules have been renumbered, see this post’ link to posts mentioning rules?
Hi Jesse, I just wanted to say that as a newbie, that is EXACTLY how I approached ynab… I thought “Maybe one of these days I’ll get to living on last month’s income” but I did jump right in and start giving every dollar a job and planning for emergencies. I’ve been using ynab since January 1 and it has quite literally changed my life ~ I have never been happier. I think this change will be a good thing, as you say, to ease people into the methods. Thanks again for everything you do!
This is great news, although I’m not sure how I feel about it. I feel more inclined to Stop Living Paycheck to Paycheck first, then Saving for a Rainy Day will come easier after that. Do the rules have to be followed in order? Seems I have accomplished the current rules 2 and 4 first, now working on 1 then save for a rainy day last.
Actually now that I have written that out, you’re new order makes perfect sense. I feel I will accomplish 3 goals much faster. Can’t wait to get into YNAB later and change a few things around in my budget. =)
“Give Every Dollar a Job” definitely deserves top billing. And while it will be an adjustment to stop saying “Rule 3 Funds,” bumping the former Rule 3 up to second place makes sense.
I’m not so sure about putting “Roll With The Punches” ahead of “Stop Living Paycheck to Paycheck.” When there is no buffer, where does the money for overspends come from? Yeah, I know. It’s possible because there are enough dollars in Rainy Day funds that cash flow isn’t an issue. But I’ve never liked the way the former Rule 4 hides where the money is borrowed from. The concept that it comes from the envelope labeled “Next Month” is useful, but if we have Roll With the Punches ahead of the buffer, the Next Month envelope could be empty.
It really does make sense now that you put it out there – though I’m going to be sooooo confused for a while!
I think Patzer makes a good point about having the old rule 1 be the new 3 instead of 4, but I think either way it is better for getting new users on board without scaring them away. This way, you can be a full user from day one (not that you couldn’t before, but I think some felt that way).
Nice Jesse. I’m with Patzer on wondering about RWTP ahead of SLPTP, but moving SLPTP away from the number one spot will definitely stop folks being scared off from what could be just what they’re looking for.
Hi Jesse,
I like it! Especially since for a newbie like me, it makes things much more understandable and attainable. I’ve been playing with numbers today, in fact, and had figured out it will take me 7 months to get to the new rule 4 with my current pay schedule. Focusing on the other rules while working my way to not living paycheck-to-paycheck is just the way I want to move forward.
I think this change makes sense… my only concern is the confusion that might be caused in the forums if someone new reads an old forum message that refers to a rule by number only.
Yeah I guess that’s true, but when it was Rule One, it emphasized that I should pull money from savings to start living paycheck to paycheck.
Cool! I’m interested in the process of how you came about this…
How did you gather that feedback and realize that #1 was scaring off people?
Hi Darin,
Nothing scientific, just gathering feedback from users over the past few years. A bit scary since we obviously can’t select those that were turned away in the first place!
Started YNAB two days ago – and I’m having a difficult time seeing how “the artist formerly known as Rule #1″ will be worked into my budget – btw.
However, changing 1 to 4 makes the others seem as a means to that end. And stopping living paycheck to paycheck is, personally, the most important part of why I’m doing this. I like it better. Well done.
Personally, I actually like the “Stop Living Paycheck to Paycheck” as rule 1 because it resonates with me and I think it is inspiring as a goal for people who aer currently scrambling financially.
My main concern with Rule #1 was that to my mind not enough people on the forum were explaining clearly to concerned new users that a months’ buffer is a gradually achieved thing for many people and that budgeting one paycheck at a time is essentially having a buffer of one pay period as opposed to a month, and once you have a months’ worth of paychecks free and clear in your checking account instead of just one or two weeks’ worth, the buffer is for a full month, not just a single pay period.
Anyways, those are my thoughts and I support your decision and hope it works out in encouraging more people to try YNAB, as it is to my mind clearly the best budgeting application on the market.
Well I think I understand why the change and I sorta like it, but my concern is whether many people will really try for rule 4 now that it’s last. I’m glad I already have my buffer in place! I kinda liked that it was pushed at me right away to tell the truth as it made me REALLY want to get there! But I realize everyone is different.