YNAB You Need A Budget

[toothdoc78]

Hi, I'm new to YNAB. My husband and I already set up a buffer, and now want to use what ever is left after our budgeting to pay down debt. What's the best way to do this using the program? There are a few categories I'd like to roll over till next month (doctor visits, clothing, etc.), but the rest of the categories I'd like to "zero out" so to speak and put it toward debt. Do I wait until the end of the month and then see what's left and then apply it to the debt or try to budget a set amount of debt reduction each month? Thanks!

[Patzer]

Hi, I'm new to YNAB. My husband and I already set up a buffer, and now want to use what ever is left after our budgeting to pay down debt. What's the best way to do this using the program? There are a few categories I'd like to roll over till next month (doctor visits, clothing, etc.), but the rest of the categories I'd like to "zero out" so to speak and put it toward debt. Do I wait until the end of the month and then see what's left and then apply it to the debt or try to budget a set amount of debt reduction each month? Thanks!

I'd do both. First budget a set amount towards debt reduction, representing a minimum that you think you can commit to paying each month. Then when you have a good month and underspend groceries, dining, and whatever other categories you might want to zero out, zero out those categories at the end of the month and throw whatever money you saved into the debt reduction category.

I do a similar thing with saving for very long term expenses like home improvement and car replacement. For two years, I had no regular budget amount going to either of those. Now I have a small amount, but not enough. Nevertheless, I'm on track to replace my current car when it is 10 years old because I've salvaged enough money from underspending controllable expenses and budgeting part of irregular income to categories like this. The same process can be applied to debt reduction.

Patzer

[toothdoc78]

Thanks for the reply! That makes perfect sense. I can't wait to start getting our finances on track!