This is the fifth day in our 31-Day Money Challenge. Over 31 days we’ll publish 31 podcasts, each designed to help you move closer to financial freedom. Yesterday we covered 7 tips for effective and stress-free budgeting. In today’s podcast, we Jesse Mecham, founder of You Need a Budget (YNAB).
The 4 Rules of Budgeting
In this episode, Jesse walks us through his 4 rules of budgeting. He also discusses some myths some believe and common mistakes many make with their budgets.
- Every Dollar has a Job: Every dollar that comes into your life should have a job. That’s really what a budget is all about. To that I would add that you should put every dollar to work as soon as you can. We discussed that “pay yourself first” concept in yesterday’s podcast.
- Save for a Rainy Day: An emergency fund is a critical component of any financial plan. While the size of a rainy day fund may vary based on your specific circumstances, we all need resources available when the unexpected happens.
- Roll with the Punches: One of the key mistakes Jesse sees people making is a lack of flexibility. Not everything goes according to plan. You may have a well thought out budget, but something may come along that changes your priorities. That’s ok. Roll with the punches.
- Stop Living Paycheck-to-Paycheck: This really is the key step toward financial freedom. And it’s a great feeling to know that you can survive for even one month without a paycheck. YNAB is designed to help you accomplish this goal.
- You Need a Budget software (34-Day Free Trial)
- Your Money or Your Life
- For Those at the End of Their Rope: This is a must-read from the YNAB forum.
- 4 Reasons YNAB Beats Mint Hands Down
- The Doomsday Fund: How Planning for the Worst Prepares You for the Best
- Should a Credit Card Act as Your Emergency Fund?