YNAB Personal Budget Software & Finance Forums

[hif.blc]

Hi I am very new to YNAB, just signed up yesterday for the trial.

My husband is currently looking for work and we are living off of my part-time income, his un-employment & gifts from family and friends. Can you budget with this kind of instability? My husband says 'why budget when I already know it's not going to cover expenses'

[adlund]

It ALWAYS important to budget even when you have more bills than income. Telling your money to behave is the best way to make the most of what you have. Just make sure you prioritize your categories. Food, Shelter. Utilities and Transportation (to work etc) take top priority, while credit cards, cable tv, cell phones etc can wait. Take all of your bills and assign them a priority level and then set them up in YNAB in that order. Budget your dollars starting with the most important category and work your way down the list until you run out of money. Then any time you have extra money come in (gifts, part time job etc) then you pick up where you left off until hopefully everything is funded. If not then there is not a lot you can do until you have more income coming in. Just make sure that you start over every month and fund the important things like food and shelter. NEVER STOP PAYING RENT JUST TO PLEASE A COLLECTION AGENT!!!

Hope this helps..........and things do and will get better. hang in there!!!

[crucial]

Not only that but a budget can help you identify which categories you may be able to cut back in or where you need to find alternatives. Groceries/dining out is usually the big one.

[moneymatters]

If you're having a hard time making ends meet, I suggest what the above commenter said - Setting up a budget (to identify areas to cut back) and setting up a priority system. Sticking your head in the sand can only allow things to get worse.

First, take care of your four walls - Food, transportation, shelter and clothing. Next prioritize your bills, and use a pro-rata system to pay them. In other words, pay everyone a pro-rated amount, based on the amount you owe them, and the amount you have (total) to pay on all the bills. More on this concept here: Pro Rata System

Of course finding new income is important here too so that you don't have to constantly be treading water. It may be time to take a low end part time job at walmart or a similar place even while he looks for work. Doesn't have to be permanent, just a stop gap for now.

[VanGuard]

Consult a professional. I know that you'd think "A professional is just trying to make a living" ,but when you think about it, aren't we all? Consulting you with your finances is part of their job. Manisha Thakor has been on Good Morning America and several other shows. She's authored financial books and consulted people with their finances. In other words, she's a personal finance expert.

[LizziesHome]

Never underestimate the power a little clarity can give you. Seeing all your income and expenses in black and white (or red) on YNAB is concrete evidence of your financial position and knowing this - and not just assuming it, like your husband appears to be doing - is POWER.

On the surface my husband and I appeared to be doing just fine; healthy account balance, paying all our bills on time, never carrying a balance on our credit card. But within two paychecks' time with YNAB, we increased our mortgage repayments and with a little juggling have more or less halfway funded our Buffer. It didn't even occur to us that we'd have 'extra' to spare for the mortgage regularly since our bank balance never seemed to go up very much. When we got hyper-focused using YNAB, we were like those crazy math guys on Numbers, LOL. Patterns and 'duh moments' just seemed to jump out and smack us in the face

It's very easy to 'go ostrich' on your finances but in the long run, you'll only dig your hole deeper. YNAB can help with that