![]() Then use your online bank account or those bank statements to estimate what you plan to spend for everything. Then work in a miscellaneous line and any nonessentials like personal spending, fun money and entertainment. Next, list all other monthly expenses. Start with the essentials: We’re talking about insurance, debt, childcare, etc. You’ll learn better what you actually need here in the months ahead. By the way, that grocery budget line is super hard to guess at first, so just start with a really good estimate based on your past spending. Other expenses change up, like groceries or gasoline. Some of these are called fixed expenses-aka the expenses that stay the same every month, like your rent or mortgage. Here’s what it might look like for you (but with your numbers, of course!): Or the category is like a playlist, and the lines are like the songs. Think of a budget category as a folder, and the lines as the files inside it. Make a budget category for each of these and create budget lines underneath for your specific expenses. You've got to pay yourself first before you pay everyone else!Ĭover your Four Walls. That’s food, utilities, shelter and transportation. We believe in 10% of your income here and always having a spirit of generosity! Next, budget for your savings goals, like an emergency fund (depending on your Baby Step, which we'll talk about more in a minute). Pro Tip: When you’re making a budget, before you put in all the things you’ll pay for this month, set aside money for giving. It’s time to list your expenses! (Yep, this is when that bank account or statement gets super helpful.) Now that you’ve planned for the money coming in, you can plan for the money going out. You can adjust later in the month if you make more and add that extra money to your money goal or another budget line. If you’ve got an irregular income, take a look at what you’ve made the last few months and list the lowest amount as this month’s planned income budget line. Note: You’re working with net income here, meaning what you bring in after taxes or anything else that’s taken out of your paycheck. You work weekends as a barista or bagpiper for hire? That’s income and it goes in your budget.Ĭreate separate income budget lines for every paycheck you (and your spouse) make, plus anything extra coming in. Income is any money you plan to get during that month-that means your normal paychecks and any extra money coming your way through a side hustle, garage sale, freelance work or anything like that. That will give you the info you need as you start filling out numbers on your budget. Pro Tip: Before you dive into the steps, open up your online bank account or grab your bank statements. Just saying.) Either way, it’s totally okay to start by writing out everything on a sheet of paper. (We know a great tool called EveryDollar. No matter how you feel about budgeting right now, no matter what money goals you have, and no matter your income-you can make (and keep!) a budget in just five steps.įirst, decide if you’re making a budget on paper, with a spreadsheet or in an app. Keep reading to see how to make it happen so you can make a budget that works for you. When you learn how to make a budget-and do it every month-you’re giving your money purpose. It’s a plan for what’s coming in and what’s going out. It’s not a restriction on spending-it’s a plan for what you’ll do with your money. Real quick though, let’s define the word budget. Here’s how to make a budget in five steps.īudget Step 3: Subtract Expenses from Incomeīudget Step 5: Make a New Budget Before the Month Begins So, here we go-bite by bite, step by step. (You go one bite at a time.) And no one leaps into budgeting like a pro. Because no one eats an elephant by swallowing it whole. Off topic comments, attacks or insults will not be tolerated.Making a budget might seem overwhelming at first, but hear this: You can do it. Follow reddiquette and keep discussions civil, informative and polite.You can also find the tutorials and help topics for YNAB 4, as well as download their previous apps on their Classic website.Īlso check out our wiki! Subreddit Guidelines Please wander over to some of the following links at YNAB's website: YNAB has a lot of really great support resources that you should probably check out. There is a YouTube playlist by YNAB which acts as a primer for nYNAB as well. ![]() Feel free to post your questions, budget strategies & advice.įor veteran users, learn more about the changes to the new rules in the Transition Guide. We welcome any posts here regarding YNAB. This subreddit is dedicated to discussion on the popular budget software You Need A Budget. NYNAB was last updated 31 August 2022 Welcome to /r/YNAB Filter out today's "Rant" and "Rave" threads.Welcome to /r/YNAB! Check out the wiki, and new users please read this helpful page!
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