srakayoo.blogg.se - You need a budget reddit

Whatever you’re saving for, it’s motivating to know that you’re chipping in for a future purchase that will make your life better-and the specificity is what’s so motivating!īut what happens after we pay for the new fridge or go on that vacation? Do you really need a category called ‘Whirlpool WRB322DMBB’ or ‘Woohoo! Costa Rica, 2017, Baby!’ floating around in your budget? It’s a personal choice, but my guess is “No.”Įven if you hide those old categories when you’re done with them, it’s just extra clutter. As one YNABer, Carsen, put it, “Giving dollars jobs is like getting to spend the money before you spend the money (and who doesn’t enjoy spending money?).”Īnd the jobs that you give your dollars could be paying for your next new cell phone, a house project, a new refrigerator or a vacation.

Use any of those as a template to set up your own YNAB categories or customize your own! Save in Specific Categories, Here’s what that starter budget might’ve looked like:

Quality of Life Goals – Categories for hobbies, health and wellness, and entertainment.

Goals – Categories of expenses you’re saving up for, like travel, education, or home improvements.

Non-Monthly – Categories to break True Expenses (like holiday gifts, annual subscription costs, or car insurance premiums) into manageable monthly chunks.

Frequent – Includes expenses like groceries, transportation, and eating out.

Bills – Create categories for your monthly expenses.

When you started using YNAB, whether it was today, last week, or last year, we gave you some categories and groups that we thought may be useful to get you started. You can always add or change them at any time, just remember: simple is better. We suggest that budgeting beginners start with fewer categories and then let any new ones earn their way into your budget. When you have just the right amount, they’ll most effectively point you in the right direction-whether that’s eliminating overspending, paying down credit card debt, building up an emergency fund, or meeting your savings goals. Your categories are part of that process. It’s a personal finance tool designed to make your life better all around. So why isn’t there a correct number of categories? Well, a monthly budget isn’t just a record of your spending. One woman ( who met her now boyfriend through YNAB) had just eight categories when she was focused on paying down her debt.

Some people have 45, some people have 145. To be honest, the answer is different for everyone.

You probably want me to say the answer is something definitive (like, 29) but it would make for a really short blog post. Sure, there are impassioned hordes on the internet that might have a definitive (and contradictory) stance on this question, but when it comes to your YNAB categories, you do you. Just like there’s no wrong way to eat a Reese’s, there’s no wrong way to categorize your budget. As you move farther along the learning curve and develop a better understanding of your financial goals, you may realize that your initial YNAB budget category set-up might not serve you as well as it once did-and that’s a good thing! Your budget should evolve as your financial situation (and life!) does. It’s not just new budgeters that get bogged down with this question, either. This is a question we’ve been getting since the dawn of time-err, well, since the dawn of You Need a Budget in 2004. How many YNAB categories should I have? 12, 24, 158?