YNAB BLOG

An Old Dollar is Like Aged Wine (I Suppose)

I don’t drink alcohol, so my analogy may fall flat in many places.  But I hear people talking about how an older wine is better.  Pretty much every time, right?  People collect old bottles of wine to store, and never drink, right?

So I’m going to run with this analogy.

An older wine gives you more satisfaction than a newer wine.  Spending older dollars gives you more satisfaction than spending brand new dollars.  Maybe both are easier to swallow :)

The guy that received his paycheck last Friday, and hit the clubs Friday night…he was spending the money almost instantly.  That spending doesn’t taste very good.

However, the lady that sets aside $150 for Christmas, and ends up with $1,800 of ready cash, just waiting to create some Christmas joy (that’s another post, about joy and consumption, not to be delved into here), that spending will taste great!

I haven’t yet figured out how this analogy works with overspending on a credit card.  I guess it’s like you’re eating the grapes? You can’t even make the wine because you’re consuming them well before the process can even get started!

And then there’s the retired couple, that is spending dollars they’ve let “age” for 35 years.  That spending must feel so good.

If you follow Rule Four, you should, on average, be spending dollars that are about 30 days old.  Then add in your Rule Two funds where you’re giving dollars jobs where they won’t be used for several months, or even several years, and you’re spending starts to taste pretty good!  Vacationing with aged money. I like the sound of that.

5 Responses to “An Old Dollar is Like Aged Wine (I Suppose)”

  1. OhYeah

    I think the credit card spending would be analagous to a really bad hangover from chugging cheap wine in order to get drunk. Meanwhile, savoring a nice glass of finely aged wine is about the wine, not the drunk.

  2. Blaine

    I have often thought of the 30 day old spending, it feels great! Actually I get paid once a month, so the other day I was pondering how at the first part of March I’m working and earning money that will be in April’s paycheck and May’s budget. Also, how what I just spent on paying the bills, utilities, and such was earned way back in January and was February’s paycheck that I just spent in March.

  3. Tim B

    I found YNAB at exactly the right time to do this.

    I normally get paid every 4 weeks, but because of the new financial year, February/March has been a 5 week month that I’m just coming to the end of now. I knew it was going to be tight, but hadn’t found YNAB yet, so I just had some vague idea of “what usually lasts 4 weeks now has to last 5”. Even so, I somehow talked myself into spending £400 on a new laptop in the first week. I found YNAB in the second or third week, and it helped me budget well enough to get through the rest of the month without having to sell anything to survive.

    The upshot is that 1) I now have YNAB, 2) I now KNOW that 4 weeks pay can last 5 weeks, even when I take £400 off the top, and 3) I have 5 weeks pay plus a raise coming this month.

    By my reckoning, that means I can take £400 plus 2 weeks pay straight off the top, and still make the remaining 3 weeks last me until payday. That should put me around ¾ of the way to Rule 4 right off the bat, which is awesome.

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