3 Reasons You Should Stop Budgeting By The Month
ฝัง
- เผยแพร่เมื่อ 28 ก.ย. 2024
- People budget monthly by default. But there's no real reason to budget by the month other than most of your bills occur monthly. After all, life doesn't happen the same way every month, so how can you expect your budget to stay the same?
It can't. And if you continue to budget monthly, your finances are going to significantly suffer.
Let me show you 3 reasons you need to stop budgeting by the month and what you should do instead.
My Website: mappedoutmoney...
FOLLOW ME
Instagram: / nickdtrue
Facebook: / mappedoutmoney
Twitter: / nickdtrue
Love the cat pictures. A monthly budget has worked for me for a long time BECAUSE I also use sinking funds for things that might mess with it. Christmas, medical stuff, car stuff, vacations, any annual or semi-annual expenses, etc. all get a small amount each month from my budget and the money is just sitting there when things come up. I love having dedicated savings accounts for each one so I'm not just pulling from an "unexpected expenses" pot. It lets me track exactly how much I need to be putting aside for things and never get caught off guard. :-)
Budget Girl nice. Yes I totally love this! We have about 5 sinking funds and do something very similar. We do Christmas, vehicle/camper maintenance, gifts, specific vacations, and right now a sewing machine. I'm all about it. And glad you like the cat pics :)
I've been on ynab for a month now and watched tonnes of your videos - you rock. Listening to this one just inspired new categories.. like.. oh yeah! I should totally budget for halloween!! I got three kids and halloween costumes and candy and decorations and it's every year... and every year it's like "omg how could i have seen this coming literally no way" ... then easter comes... "omg how could i have known this would incur extra expense! crap!" hehehe.. this next 365 days is going to be different!!!!!!
Thanks for the encouragement Nick!!!
No problem Ric! So glad that you enjoyed the video! :) Thanks for watching.
This is great info. I'd add that it's not only annual or unexpected expenses that should be budgeted for in this way. For example, now that we have a year's worth of YNAB data to look back on, now I have a much better estimate of how much we spend on average over the course of a year on common categories like Personal Care (shampoo, conditioner, Excedrin, sunblock, etc.) and what we call Home Supplies (paper towels, tissues, steel wool, etc). Since we tend to buy these all at once, sometimes we spend $0 in a month on them and sometimes it's a lot. So instead of setting a monthly goal -- which previously I would overspend on one of those heavy months -- I set an annual goal. That way if we spend nothing, then we keep putting money aside, and if we spend a lot, there's a fund there anyway. Over the course of a year it'll all shake out.
Love the Christmas & emergency budgeting tips
Popcorn Finance thanks 🙏 so glad you enjoyed it :)
I love that you remind us all that screwing up your budget is _part_ of the process. We all go through it!
Congrats on 15K🎉
Exactly!! All part of the process :)
And thanks! I super appreciate it!
I've started my YNAB budget so many times at this point, I called it New budget #1000, sigh haha. I'm still not giving up! haha
You've got this, just keep on pushing and you'll get there :)
You've got this, just keep on pushing and you'll get there :)
I had strated fresh 15 times this week alone koz Everytime I get something wrong' now I'm finally set 😁😁 how is he budget now ?
I love your videos! They’re very helpful!
Thanks so much! Sorry I just now saw this comment, I really appreciate you watching :)
Another excellent, encouraging video! #welldone
Thanks Scott!! Glad to see you again and happy that the video helped you man!
Great tips...thnks!
NubianQueentv so glad it was helpful for you! :)
❤❤❤❤
You mean creating “sinking funds”
Yup, that's right!
Thanks for watching Ada :)
Harley Morenstein has a budgeting show?
Alex Dresko haha! I’ll take that as a compliment. I do love some epic meal time ;)
And admittedly I’m pretty bushy on this one 😂
Might need to work on your Canadian accent, though.
Alex Dresko ha. Yeah. Now that would take a lot of work I think. I’ll just start randomly start adding bacon to my budgeting shows.
“Get started screwing it up” !! You need to put that on a T-Shirt :) I appreciate your videos Nick! Very motivating!!
hahah, so glad you liked the video!! That's not a bad idea for a t shirt at all ;)
This video just reminded me how much better the old YNAB (3-4) was in doing exactly what you are describing. Those older versions allowed you to see what your budget/position would be like at any time in the future. For example you could literally go to December 2021 and either see how your rollover totals for each category (including rainy day or unexpected expenses) would be and make adjustments on any previous month etc. Say you have car registration due in Feb 22, you could then adjust the 'car registration' category savings in December to allow for a larger 'unexpected' expenses for that month as you know that's where budgets blow out, and then decide to either save a little bit more each month until then or allocate more during January since there's less spending during that month. To do that in the current version one has to either wait until the actual budget gets blown or make do with silly little notes on each budget item to 'remind' you of what you had planned on doing. Great video though.
We always budget weekly...
That's good, as long as you keep in mind the stuff coming later this year that could derail you, you'll be good to go :)
Hate budgeting! And I’m notorious for being a sucky budgeter. I’ve found a solution with a daily budget (backed out by the year) with many bank accounts for big holiday months and other things like travel! Great video!!
Nice!! That's so awesome. Budgeting is so tough and everyone's got a different way that works for them. That's what's cool about it. Love to hear stuff like that.
So glad I found your channel on RV Entrepreneur! Our biggest challenge on the road. Looking forward to learning - my hubby will love it! :)
Awesome! Thanks so much for coming by :)
Let me know if there’s ever anything I can do to help.
Facts! I don’t think with three kids and 4 dogs I have ever had a month without unexpected expenses!!!
Thats why there are emergency funds and dedicated savings accounts
What app do you mention?
Maria Volkhonskaya it’s called You Need A Budget, of YNAB for short. Been using it for a couple years and love it :)
Nick True - MappedOutMoney Thank you, I've just installed it to give it a try. I used several apps which I didn't like. I created my own system in Excel which allows me to plan expences months ahead and also check whether I forgot to insert some spendings. Thank you for the channel, you're cool! It's sad but it's also so inspiring that people in different parts of the world deal with the same problems.
Maria Volkhonskaya yes I totally understand trying a bunch! I used to use quicken before I was married. But YNAB has worked much better for me and Hanna together and she likes YNAB best too.
Find what works for you. That’s what I say!
And yes. Money is a human thing, regardless of where you are :)
YNAB is not a free app(( My plan is to watch their tutorial videos and read their e-mails to gain as much useful info as possible plus try to use an app within a trial period and then improve my excel document which works just fine for me. I do see now I need to add some cool functions. May be it won't be that nice but still functional. Thanks again!
Yes, unfortunately it's not free :( but they don't use any nasty ads like Mint and other budgeting tools, plus their app is so good I personally think it's worth the money. It certainly saves us way more than it costs each year. I totally understand using Excel though! It works great too!
Nick, what music do you use in the beginning of your videos? I like it and it comes to my mind a few times during the day)
Maria Volkhonskaya I use a service called Epidemic Sound. That’s where I get all my music and my intro song specifically is a song called All of Us by Daxten
Hope that helps :)
Thank you very much, I found the song and am going to use it as a ringtone on my smartphone :)))
Maria Volkhonskaya good! I’m so glad you were able to find it :)
I like it very much though I can't make out of what they are singing :) Does the composition contain understandable text? Anyway, thank you for the nice new ringtone :)) The previous ringtone sang out loud in Russian "I'm paying and crying, I'm paying and crying, I'm paying and crying, crying and paying, can't act the other way, I'm paying and crying, I'm paying and crying, crying and paying" (it's a liberal translation of a song written by Russian musical band named Leningrad... I admit I like some of their songs nevertheless they're fond of profanities... But their texts do hit the target.)
Maria Volkhonskaya hahaha that’s hilarious. Unfortunately I couldn’t find the lyrics online so I’m not sure 😔
I used YNAB fir a year then the importing stopped working my data got corrupted and the raised prices significantly. Now I use mint. Works great and best yet it’s free!
Glad to hear that mint is working well for you!