YNAB You Need A Budget

[adavant1]

Wondering , what does YNAB recommend in this scenario

I have NOT built up a buffer.

I am still behind on 2-3 bills.

I am living paycheck to paycheck

DO I or do I not start putting money aside for things like Christmas, car repairs, vacation?

Curious. as I am still fairly new.

[Will]

I think it would be wisest to get current on your bills first before saving up for anything.

[only120xs]

I think it would be wisest to get current on your bills first before saving up for anything.

++

[Turf_Hacker]

Out of your list, I would suggest that putting some aside for car repairs might not be a bad idea. The other two are wants, but I'm assuming you may need some car repair money in order to be able to get back and forth to work. Either that or a small emergency fund ($500 - $1,000) to let you cover things like this without going into debt.

Just a slightly different slant on things...

[Budget_Ninja]

I think it would be wisest to get current on your bills first before saving up for anything.

+1, and if possible see if you can't reduce these obligations, even if just temporarily by reducing packages or cancelling services if that option exists. When you've got caught up you could re-establish them if you value them.

[Tif_Ann]

I think pretty much all financial advice would recommend that first, you get current on your bills. That means cutting out all wants, cutting back where you can, selling things, whatever it takes to get current. Then, you take a hard look at your budget and see if it's realistic and if your income can support it. If not, if you don't make enough money, back to cutting back where you can and/or getting another job, finding a roommate, whatever it takes. Then - my priority was an emergency fund and known recurring expenses, such as my car registration. The "rainy day" funds like car registration are first, and get funded before I put any money into an emergency fund. Then I am saving $1000 mini-emergency fund kind of as a bulk savings - something that I know I can use if I need a car repair, or whatever, because right now funding multiple funds like car repair, vacation, etc., is overwhelming.

[Anonybrit]

I going to go out on a limb here and disagree with most of the above - but you can ignore me 'cos I'm such a newbie that I'm still on the trial period. (Doesn't mean I've never budgeted before, though...)

Personally, I think that you have to first of all budget in the stuff you can't avoid: rent, mortgage, food you have to have, fuel, minimum payments on cards, etc.

If that uses everything, then life is going to be quite tricky.

But if not, then you budget with what's left - dependent on your priorities.

Personally, to me Christmas is not optional. Neither is vacation. They are going to happen and money is going to be spent. I don't have the choice to opt out.

So to me, knowing that I WILL spend money on Christmas and Holidays, my budget needs to build in monthly accruals to that amount. If I don't, come December the whole thing is going to go to pot.

This means that I will have less money for paying off the debt, which will be long-term costly in interest, and less money for savings and less money for extravagances, etc, but to me, saying to myself in July "Ok, we won't have any Christmas Presents this year or a holiday next summer" is simply unrealistic.

I am saying "Ok, this year's Christmas and next year's holiday are going to be much more economical", but they are there in the budget.

[roakleyca]

My 2 cents (pun intented)

1. Get on a budget (done, it seems...so good job there!)
2. Cut out as many "wants" as possible (frivulous spending, subscriptions, etc.) and even temporarily stop investments and long-term savings (retirement, education, stocks, etc.)
3. Negotiate down as many other things as possible (ex. phone bill). It never hurts to ask!
4. Get current on bills (sell stuff, get another job, put everything you can towards getting more money coming in...)
5. Build small emergency fund
6. Start saving for future necessities (car repairs, not xmas...yet)
7. Take a DEEP BREATHE and be thankful you got this far. You should feel WAY better about your financial situation at this point)
8. Debt snowball
9. 3-6 mo emergency fund, plus bring some more flexibility into your budget at this point. Save for xmas and maybe even vacations....
10. mortgage, university, investments, etc.

[adavant1]

Good news ! as of today I am current on all bills!

So I'm now to step 5! Whoot. .

[Joel]

My 2 cents (pun intented)

1. Get on a budget (done, it seems...so good job there!)
2. Cut out as many "wants" as possible (frivulous spending, subscriptions, etc.) and even temporarily stop investments and long-term savings (retirement, education, stocks, etc.)
3. Negotiate down as many other things as possible (ex. phone bill). It never hurts to ask!
4. Get current on bills (sell stuff, get another job, put everything you can towards getting more money coming in...)
5. Build small emergency fund
6. Start saving for future necessities (car repairs, not xmas...yet)
7. Take a DEEP BREATHE and be thankful you got this far. You should feel WAY better about your financial situation at this point)
8. Debt snowball
9. 3-6 mo emergency fund, plus bring some more flexibility into your budget at this point. Save for xmas and maybe even vacations....
10. mortgage, university, investments, etc.

I like this steps. Depending on if you have kids or not, xmas might be considered a future necessity though.

[adavant1]

I have 3 kids - - I'd bet they'd say it was a necessity.

[roakleyca]

I have 3 kids - - I'd bet they'd say it was a necessity.

I have 2 kids. And they are going to see what xmas can be like without material presents. My wife and I are going to be creative, but we're not going to spend money like we have in the past.

Some ideas:
- ice skating (free)
- volunteer at soup kitchen (free)
- play in the snow (free)
- cook a rad christmas day breakfast (free)
- watch a xmas movie (free)
- give photos and movies and writing as presents (free - cause I already have the gear)
- give arts and crafts for presents (cheap)

The list goes on and on. We don't plan to step one foot into WalMart this year. We'll see how it goes and maybe we'll change our mind for next year.

[litterbug]

Good news ! as of today I am current on all bills!

So I'm now to step 5! Whoot. .

Nice! That's such a deliciously big step, and I'm sure it took a lot less time than you expected! It'll be fun to see what happens next. Start a journal so we get to watch your story develop!

[Budget_Ninja]

Good news ! as of today I am current on all bills!

So I'm now to step 5! Whoot. .

Nice keep the ball rolling....

[roakleyca]

Good news ! as of today I am current on all bills!

So I'm now to step 5! Whoot. .

That's awsome. Great work!!