March’s Success Story focuses on Tracy Alt from southeastern Michigan. Tracy’s success demonstrates that YNAB can have an immediate effect on your day to day spending.

Tracy just started using YNAB in February of this year. Her first success was at the grocery store. Using YNAB Tracy was making her spending decisions by the budget, instead of the account balance. She determined how much she was going to spend on groceries – and that was it!

“Before starting YNAB I would “tell myself” that I had a $100 budget, but I was really lying to myself because I knew darn well that I was going to buy everything in my cart even if I went over-budget.

I felt so proud of myself handing those items back to the store clerk and really, truly and honestly sticking to my grocery budget.”

Tracy explained to me that before YNAB she kept a chart of monthly bills.Until recently, her chart only included the bills that she paid regularly, every single month, such as the mortgage, car payments, utility bills, etc. As she paid each bill she would check it off on her chart so she could see which bills she had already paid and which were left to be paid.

Tracy went on to say, “Spending decisions were made based on comparing the bank balance to what bills were left for the month. If I felt confident that there would be extra money, we would spend. If not, we would not spend. We had absolutely no system in place to account for “lumpy” expenses such as hair cuts, dog food, car repairs, etc. We just sort-of winged it with these expenses.”

Now that she is using YNAB, things are much easier to manage.

“In just one short month of using it, YNAB has completely changed our financial outlook. There is no more guess work. Either the money is budgeted for a particular expense or it is not and we can spend accordingly. There shouldn’t be any more surprises now that we are budgeting for the “lumpy” expenses. The next time my husband wants to do an oil change on one of our vehicles, I know the money will be there, allocated specifically for that purpose.

The monthly bills are still taken care of and the non-monthly bills are being planned for by budgeting money to those categories each month. I can’t wait for fall, when I normally start worrying about how we will pay for Christmas. It’s only February and I already know how we will be paying for Christmas this year….with money that is already in our bank account waiting to be spent for that purpose.”

So if you find yourself frustrated because you don’t have a buffer in place yet, or you are still working on your credit card debt – remember – budgeting can have an immediate affect on your short term spending, helping you to reach those long term goals.

~Erin – YNAB Coach

I’ve been using it for a little over 2 years now. Before YNAB I never
knew how much money I had coming in or going out. I lived paycheck to
paycheck and would operate off of whatever my current balance was for
that day. I’d go online and check my account, and then decide what
bills I could pay. I suffered from constant overdraft fees and poor
planning. I also learned the hard way that credit cards are terrible
things to get wrapped up in.

Because of YNAB, I wanted to share with you my recent (and upcoming)
accomplishments.

As of today, my balances are the lowest they have been in 3 or 4 years
because I followed the YNAB philosophy to the letter.

I’m on track to have eliminated all my debt by July of this year.

So within 13 months, I will have slashed over $12,000 in credit card
debt and will be credit card free!

Its an understatement to say that this program has changed my life.

I’m 24 years old. I’ve worked hard at changing my spending habits.
This incredible software and your spending philosophy worked for me -
even on a college student’s budget.

Just working the system — even on a college student’s budget :)

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.

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.

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.

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.

I received a fantastic email from Sharon, a great mom (wow, upside down, right?) that managed to get her 18-year old son to start budgeting. Notice how she didn’t demand the world of him…just let the budget show him what could happen…

Our 18 year old son has a full-time job. I told him he needed to learn to budget his money so he could start saving to purchase a home. He wanted noting to do with budgeting. I think the word “budget” scared him. He told me I could be his personal money manager. I was using YNAB to budet his money for him. Well one payday I was not home and he wanted his money budgeted right then and there. I talked him through YNAB over the telephone and since then he has been doing YNAB on his own. He learned how easy it was to give every dollar a job.

Before we had him start using YNAB his checkbook balance would always be around $10. Now that he uses YNAB, his balance is always over $700. I am glad I found YNAB, thank you for such a great program.

Updated: Sharon has her own business up and running, which you may want to check out as well.