YNAB You Need A Budget

[flpd1556]

My wife and I bought our home in December 2009. We were eligible for the first-time home-buyer tax credit of $8,000. When we filed our taxes in February, it took us 6 months to finally acquire the money in the mail. Prior to us receiving the check in the mail, we had grandiose plans for the money. We planned to take a nice trip to Mackinac Island in the summer, purchase an upright freezer, go bulk grocery shopping to stock up the freezer, buy a king-size latex mattress, spend money on our dog's neutering, blow money on personal spending for my wife and I, buy a flat-screen TV, throw a little in savings, and go clothes shopping for the kids. Mind you, this was prior to YNAB.

While we were waiting for the IRS to send our money, several things occurred. Money that was just laying around in our checking account, was being spent without any type of accountability. It wasn't until May that we had a visit from "Murphy," which changed my whole outlook on our finances. When our water heater suddenly failed on our 5 year old home, I went into a panic mode. I hoped that the repair wasn't going to be over $500.00. Luckily, the repair only cost $99.00.

When I tell you God works in mysterious ways, he really does. I think to this day that he allowed us to go through that ordeal for us to finally wake up and smell the coffee. After the water heater ordeal is when I began doing research on personal financial management. My research led me to YNAB in June. Since starting on June 4th, we've already done an about-face as far as our lofty ideas. I never realized how budgeting could have such a positive influence in our lives. The original plans we had for the $8,000 tax credit was thrown under the bus from the second I purchased the YNAB software. We never took that trip, bought the freezer, mattress, and flat-screen TV. However, we did use some of it to change our shopping habits and renew our membership to Sam's Club, so we could save money on our monthly grocery bill by buying in bulk. We also used a very small portion to buy our children new school clothes. But, the remainder of the tax credit went to establish our FIRST FULL BUFFER!!!!!!

Our tax credit finally arrived in the mail on August 2nd. By that time, I was so ready to apply it towards our new-found budget/buffer, I didn't know what to do with myself! I can truly tell you that YNAB has saved our tails ten-fold! If we had remained with our original spending plan for the tax-credit, I am willing to bet you my next paycheck that the money would have been spent within 3-4 days-GUARANTEED!!! We were willing to forego those initial purchases in order to establish ourselves on the path of financial righteousness. THOSE ITEMS CAN WAIT!!!!!!! THANKS, YNAB!!!!!

FLPD1556

[Mudie]

I never realized how budgeting could have such a positive influence in our lives.

That one line say it all.

Thank you for sharing!

[mozzie61]

Great story and thanks for sharing. It's funny how YNAB changes your attitude towards windfall money. Instead of looking for ways to spend it (that's easy) we now look for the best way to use it to bolster our budget and improve our financial well being. Do we build the buffer, pay off debt or sock it away for a rainy day? All choices that are likely to have a positive effect on our lives long after the fleeting joy of a hurried and perhaps ill considered "toy" purchase or other indulgence. That's not to say there won't be any toys or indulgences in the future, but they have to pass through the all seeing eye of YNAB first. Best wishes for your new YNAB budgeting life.

[LSUPrincess]

Makes me wish I had found it before receiving my credit in April. I had that money spent before the amended return was even mailed. The majority went to pay off some debt, but there is at least 3K that I couldn't tell you what I did with. Looking forward to my return this year and hoping to make it count!