The New YNAB Forces You to Be Real About Your Budget

Recorded on September 5th, 2016

We’ve been on the new version of YNAB (“nYNAB”) for about a month. It’s so nice to be back in the fold, and overall, I like the web-based version. But I just now learned that they completely changed the way they want you to think about the amount you sock away (or overspend) in each budget category every month. Instead of doing it the old “YNAB4” way, where you can just roll over a negative budget category balance from month to month until you “catch up”, nYNAB encourages you to adjust and fix those budget categories during the month where you overspend, so you can trust the amounts left in your categories. And if you’re overspending on a credit card and not budgeting for it, fine, but that overspending is going to show up as debt instead of as negative category balances.

Some very kind members in the YNAB forum pointed me to this video of Jesse Mecham of YNAB explaining the concept. It took me a while to get it, but I agree that it’s better. Just need to keep a watchful eye on the budget category amounts every month.

If you haven’t bought into YNAB yet, I highly encourage you to get on the hoss now. It is the only budgeting method that has ever worked for me, and the only way I can see accurately into the future.

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