Before YNAB, Oscar would see $1500 in the bank account, make $100 driving for Uber and have $1600. Wow! They felt like kings! They’d go out to eat. Order lobster. Spend way more on groceries than they normally would, because they felt rich. But that view wasn’t giving them the whole picture.
After learning Rule 1: Give Every Dollar a Job, they realized they needed to just budget what they had right now.
When a paycheck hits, they give jobs to those dollars. The $1600 in their checking account has specific jobs: $1200 for this month’s rent, $150 toward their credit card debt, $250 for the rest of their groceries this month. Sure, they just ate frozen fish sticks at home, but somehow the fish sticks tasted better than the lobster ever did.