Budgeting vs Expense Tracking

[@esmoldt]

I signed up for YNAB and built my first budget three months ago. I have been faithfully watching every YNAB video I could find on KZbin. I have also been frustrated as to why it wasn't making more sense to me than it was. That is until tonight! Watching this video, something just clicked in my mind and suddenly I knew what to do. Thank you, Hannah, for your concise, and funny, videos!

[@YNABofficial]

YAYY!! I'm so glad!! It can be such a hard mental shift to make, because we can still be really passive about recording our spending instead of active about making our spending decisions. So glad something clicked for you!! Thanks for sharing! 🌻 Hannah

[@kriannnne]

I'm about almost a month in and I swear YNAB is such a game changer! I've never learned how to budget and no one has ever taught me so actually finding this is truly amazing. Big thanks! And I love watching your videos, Hannah. You make things super easy to follow and you're hilarious and it makes it entertaining to watch!

[@YNABofficial]

YAYYY! This is BEST NEWS! For me, giving every dollar a job just made SO MUCH SENSE and gave me such a more tangible plan to work with. I finally feel peace and clarity with money because I literally know penny for penny where I stand on allllll my expenses. Game. CHANGER. 🌻 Hannah

[@michaelcrossley4716]

I'm on day two and I am already sold. I appreciate the trial and not asking for my info up front. Makes me feel more like a business partner than a customer. Thanks!

[@YNABofficial]

Wow! Michael! Why did that actually just make me a little teary? That's so amazing! Keep it up, because I promise being in tune with those dollars will change your whole life. You got this, Michael! -Hannah 🌻

[@52536626]

I’m definitely expense tracking between groceries and dining. I’m constantly moving money back and forth even though I’m getting better with this and being honest with myself.

[@YNABofficial]

Groceries and dining out is a money movement I actually feel is pretty okay. It's all getting spent on food and nourishing ourselves, it just takes a different format! So if I run out of grocery money for the month, I feel a-okay stealing from my dining out money! Maybe i'm not as proud when I steal from groceries to cover overspending in dining out... BUT, if I know I still have enough in groceries to comfortably make it to the end of the month, it's not the worst money move out there 😉 -Hannah 🌻

[@kedeeky]

I’m half through my first month of YNAB. It has further highlighted how much I need more income. I’ve actually been budgeting just as you said! I keep a widget of my variable costs and it’s been so helpful. The only time I move money is for groceries and gas. These days, those 2 are doozies.

[@mitchberg8229]

I probably used YNAB for probably 10-12 years as an expense tracker. And while it wasn't budgeting, it served a useful purpose. It did help me change my spending, which was a good thing. Its been in this last few months where the *budget* side of YNAB started making sense to me. And I'm wishing I'd figured it out a LOT earlier!

[@minnap]

One of your best videos, Hannah! You described the old me perfectly. First yr of YNAB, I just tracked expenses. Couldn’t figure out what was so great about the app. Then had a lightbulb moment and started really budgeting. Life changed completely.

[@YNABofficial]

Wow, thank you so much!! I'm so glad this topic has hit home for so many. It's so easy to get into the routine of "updating" the budget without actually "using" the budget. I am just 100% guilty of that. Those lightbulb moments are invaluable and game-changing. So glad you feel confident in your budgeting now! -Hannah 🌻

[@garydunken7934]

Good analogy comparing to driving a car

[@hmspain52]

I have to stop using my emergency fund as a slush fund! LOL

[@caseyf6]

I have a category labeled "slush fund," lol. Anything that doesn't need to roll over to the next month, gets set in there.

[@FranDeVita]

I created two emergency funds... One that lives in my savings that I never touch and one in my checking that I fund to $1k and use if needed (so essentially a planned slush fund I guess). I usually don't need to pull from it, but when I do I build it back to $1k before moving anything extra to my savings account at the end of the month. Before I was able to save 1K. I kept 150 in my "Forgot to budget for" category for this very purpose.

[@SmallSpoonBrigade]

Keep the emergency fund in a different account with a different debit card associated with it. Then have a second account that's more of a slush fund where you can put the spare little bits that are left over at the end of the month and treat it like a loan from a bank. Seriously, pay the money back, ideally with interest, to your future self. It should help to reduce that kind of behavior without having to give up the things that you really want. If you don't want it badly enough to pay yourself interest on the borrowing, then you probably don't want it badly enough to steal from your future self.

[@SmallSpoonBrigade]

@@FranDeVita I've been working on building my checking accounts up to larger balances. Right now I'm keeping them at about $275 because that's high enough that I shouldn't have to worry too much about stuff bouncing before I can effect the relevant transfer, but not so high that I'm super tempted to spend it all. Over time, I'm planning to build it up a bit so that I've got $500 or so that I can spend on short notice if I need to.

[@sherrimciver8859]

'Give every dollar a job' is the most essential change YNAB made in my life.

[@jessiekarach]

This month's "shoe organizer" was our beach/grocery wagon. Made that budgeting goal back in march and I'm ridiculously excited to have this wagon now lol

[@barbora3169]

I don’t know who’s really hear this but if you really want to generate wealth, start small and with the little that you have, and invest it into stocks bitcoin and other crypto currencies I’m a living testimony from this.

[@adisdebeljak7370]

@@barbora3169 That’s so true I’m retired and I just started investing in these crypto currencies and I’ve made $29,000 with $3,000.

[@barbora3169]

@@adisdebeljak7370 It’s a smart thing to do honestly. I did my research and invested $100,000 into crypto with the help of an experienced financial analyst and now, I’m worth 500% profit. My portfolio is $542,000.

[@adisdebeljak7370]

@@barbora3169 What!! who’s your broker?? That person just boosted your account lol 😂

[@barbora3169]

@@adisdebeljak7370 Lol, it was like a dream to me at first. My analyst is Mrs Delia Luna . She has really helped me achieve a lot in this space. She trades for me and earn me profit monthly. You can do your research about her 👍

[@tiannav5280]

Omg. Biggest A-ha! Moment…. I’ve been struggling since the pandemic started and now I understand I’ve been expense tracking 😩 cheers to everyone trying to turn their budget around as well 💕

[@jrdill1631]

Thanks for exposing all us Wine Hamburgers as expense trackers! We'll learn eventually.

[@YNABofficial]

😎🍷🍔🤷🏻‍♀️ -Hannah 🌻

[@kerstinshadow2210]

So well explained! I did expense tracking for 3 months. As first step. Then I defined a realistic budget based on my spendings. And reduced the weekly trip to the mall / shopping center to a monthly trip.

[@amandarandolph7222]

I definitely mostly budget, but I expense track a little bit. I budget everything out, but I don't necessarily check it before I make all my purchases. I mostly know what I have though so I guess it's not too bad. And then I borrow from other categories of I have to.

[@YNABofficial]

I'll be real with you-we ALL expense track just a *little* bit, me 110% included! None of us can be perfect budgeters all the time (though that'd be #dope). Just keep revisiting that question here and there-"Am I budgeting more than I'm expense tracking"-and you'll be setting yourself up for success. Accountability and honesty are key! -Hannah 🌻

[@SmallSpoonBrigade]

You should be doing both. You make the budget, and the tracking is where you figure out how realistic that was. If you find there's areas where you're routinely just tracking, that's a sign to dig a bit deeper on why.

[@KAFNOR]

I do more expense tracking than I realized. Am budgeting like crazy as I listen to this!

[@morganerickson439]

Bought YNAB in 2007 Used it as an expense tracker until about 2018-2019. Now we actually budget and it is SOOOOO nice to pay an entire month's bills on the 1st because we actually have the money.

[@lulamidgeable]

Yes, I get savings and bills out of the way early in the month.

[@VinceBass]

Same. This video was necessary.

[@SmallSpoonBrigade]

Even if you just budget the large ticket items and only buy things with cash and debit, it should move folks towards budgeting and not worrying so much about money.

[@marineb7617]

The driving analogy….the best explanation ever 😍. Oh my days….Now I know what it’s called that I’ve been doing….expense tracking….🤦‍♀️ Thanks Hannah for another great video 😁

[@toddw8396]

With the phone app, checking budget before buying something is fast and easy…and iOS even has widgets so you can keep an eagle eye on groceries, dining out, fuel, or whatever categories you need to keep an eagle eye on…without even opening the app!

[@shellyreeves8954]

How do you do that with the widgets?

[@toddw8396]

@@shellyreeves8954 goto YNAB’s website…in the search bar, type widgets. The first topic there is called “Widgets for YNAB Now on iOS.” It is VERY easy to follow step by step widget setup.

[@romanmirandany]

Omg the car analogy hit for me. I love driving so much I told my mom I wanted to get my learner's permit on my 16th birthday! (which I did and I've been driving ever since…for 15 years lol I didn't like doing that maths) Anyway, yeah…very good. I've been expense tracking. Time to look forward. 💪🏽

[@Faith_and_Hope_07]

Genius!! Wow. I am definitely just expense tracking. 😢😢😢😢😢. Thank you! Have work to do.

[@YNABofficial]

Honestly, SAME. Same same same. It's an easy habit to get into. We all have a little work to do! -Hannah 🌻

[@LisaGallegos]

Same 😣

[@galacongamer]

Glad I watched this video this early in my experience with YNAB! Definitely been expense tracking more than budgeting 😒

[@YNABofficial]

It is such a hard balance! I think we all slip back into simply expense tracking every once in a while, so it's a good question to revisit every month or so: am I still truly budgeting, or have I slipped back into retroactive expense tracking? Best of luck on your YNAB journey!! We're for ya if you ever have any questions!! -Hannah 🌻

[@galacongamer]

@@YNABofficial It’s all fun and games until you actually start saying no to purchases that would break your budget, haha. Thanks for being such a great host and for your encouragement, Hannah!

[@FeliciaWilliams1908]

I have to say with other budgeting apps, I was only expense tracking. Like I was spending tons of money on eating out. I would see it, feel bad, say I needed to spend less, not do that and then rinse and repeat. With YNAB, I finally stopped just expense tracking. So even when I do overspend, getting a notification gets you in the habit of fixing the overspending which makes instantly aware of overspending. I started YNAB January of 2019 and still thankful that I stayed after 34 days.

[@shellyreeves8954]

What notifications? I must not have them enabled.

[@FeliciaWilliams1908]

@@shellyreeves8954 I am sorry, not a notification technically. When you go into the app, it will have a notification to tell you have overspending.

[@mruppity64]

I've been using YNAB since 2005, it took me quite a few years to get to budgeting, but I can now see I've moved back to expense tracking

[@clucibello9421]

me too.... I was faithful to take time every single week to review my budget, but when I get busy and skip a Saturday morning, I am reactive for the next week.

[@juliejones4173]

Me too!

[@Ironnana206]

I am wondering if there is a group to help us recovering trackers to get back on track. (Budget)

[@saxd0ct0r]

Expense tracking is a post-mortem on your money …

[@marqueetrees3212]

This is a great video! Haha definitely reminds me of when I first started using YNAB; I was definitely expense tracking, not budgeting. Tip #1 is actually how I broke the cycle. That's still one of my favorite features of YNAB - being able to look at a certain time period and see the average spent. When I saw I was consistently overspending in X category, I could look at the average I *actually* spent and budget the proper amount at the beginning of the month. Really enjoy your videos, always super helpful and entertaining. Thanks for sharing!!

[@YNABofficial]

Yes! I wonder if it'd be a good idea to do a video on the idea of "are you overspending, or are you under-budgeting?" Sometimes I feel like we just try to avoid the reality that a category just requires more than we're feeding it. Good thoughts! Thanks for sharing! -Hannah 🌻

[@marqueetrees3212]

@@YNABofficial I think that's a great idea! I remember Jesse specifically addressing this thought in regards to his family's grocery budget. I don't remember if it was in the book or the podcast, but I recall him saying that they would always go over budget no matter how hard they tried with groceries until they finally just realized, hey - we should probably just budget more for groceries. Great idea for a video! Thanks for the reply!

[@britneeg]

No lie - this video changed my life! I’m so glad I found YNAB!

[@javajovrgo]

Boy did I need this wake up call! 😂 Recovering expense tracker here. 🙋🏻‍♀️Time to focus on for real budgeting!

[@YNABofficial]

(Aren't we all?!) -Hannah 🌻

[@daisylua767]

These videos are super helpful, thanks! The music in the background is driving me kinda cray cray though :')

[@emilypaulsen6030]

I just started trying to follow a budget and your video popped up on my suggested page and I got so excited because we went to high school together and I had no clue you have a thriving KZbin channel. Loved the video!! I could see myself accidentally in an expense tracking mindset. Subscribing for more videos. 😊

[@YNABofficial]

Emily! No way!! So fun! It's been a long time since our flute playing days. I gotta whip that puppy out soon. Good to hear from ya!! -Hannah 🌻

[@emilypaulsen6030]

@@YNABofficial yesss, whip it out and jam some time! Good to catch up with you too. You also just popped up on an ad when I was on Duolingo. I'm so proud of you. You are killin' it! Congrats on all your hard work. 💃

[@r3activi5t13]

a month into expense tracking, I've just started looking into parts of the app I was using for budgeting options...not that great...but expense tracking is gateway to budgeting, all good! Kudos!

[@conureron3792]

I needed to track expenses when I started since I had no clue what I was actually spending. But I am more a budgeter now. Cut down a lot on impulse buying. It still occurs but it’s almost completely gone. I’ll over spend sometimes on categories and need to shift $’s around. And several times, I’ve planned ahead for major purchases, to accrue the necessary funds.

[@Washpenrebel]

I was the same. I need to get a handle on what I was spending my money on first. Seeing this made me realise and change my habits. Now I'm beginning to budget better.

[@YNABofficial]

This is such a valid point that I'm not sure I addressed! Why do we start a budget in the first place? Because we have NO idea where our money is going. So how *could* you know how much you were spending in each category? Expense tracking in the beginning is a great way to get some insight into where that money tends to be going. THEN hopefully we move more toward a place of budgeting! It's allllll a process. And we definitely will flounder back and forth over time-it's honestly just natural. But the important thing is that we keep asking ourselves "Am I truly budgeting as much as I want to be? Or did I slip back into expense tracking?" The honesty from the answer to that question is what will get us back on the right track! Side note-I always see your avid and consistent commenting, and appreciate your investment in our educational content so much!! You are one of the most faithful commenters and I always love seeing your name pop up! #YNABfamforlife -Hannah 🌻

[@SmallSpoonBrigade]

TBH, there's basically two ways of starting a budget if you haven't done so before. One is to just track your expenses a bit to figure out roughly how much to allocate where. The other is to take averages from researchers and use those as the starting point and fix them as you go. I'm not sure that one is really better than the other, so long as you can still pay your bills while you're figuring it out.

[@meskobe]

One other thing to keep in mind is that sometimes "life happens"! I have been in a season of having several really significant life stressors in a short time, struggling with depression, etc. So for me, I've had to release the desire for strong budgeting discipline, and be ok with the fact that while I do save for all my #2 categories, the regular spending categories (e.g. groceries, dining out, clothing, home decor) are not monitored and are generally just expense tracking. As long as I'm not going in debt and I'm doing all my saving (long term and short term) first, it is OKAY! :)

[@chelsea3177]

So important for people dealing with stressors or mental illnesses! Budgeting won't look the same for every person, and even for every point in your life, and that's okay 😊

[@SmallSpoonBrigade]

That's one of the reasons to have "petty cash." Basically, it's a small amount of money and/or a small bank account that you can spend out of for small things that are a hassle to track. You save the receipts and whenever it dips below a pre-determined level you can record all the spending that was done and transfer money from the relevant budget categories to the petty cash fund. The idea is that the size should be small enough that you can't just completely blow your budget by spending all of your petty cash in one go, but it frees you from having to check the budget every time a small expense comes up as you should be able to replenish the account mainly by dipping into the spending money from the categories you spent the money on.

[@starbucksmocha88]

Okay this makes me feel a lot better to know that others have done the same thing, even the creator of YNAB! I always knew I had changed the style of my budgeting when I moved to the online version years ago, but I couldn't put my finger on what exactly changed other than that I was able to start saving a ton. Now I see that on the old offline desktop program I was spending and then tracking my expenses after the fact (which was better than before that when I wasn't tracking anything at all!) but it wasn't really budgeting now I realize. For some reason the new online YNAB really clicked for me with the way the budget worked and since it was a lot more user friendly I started spending more time using the budget section rather than just adding in my transactions. That was when I finally made progress saving and it's been awesome ever since thanks to actually using YNAB to BUDGET! 👌

[@tshep1174]

Came for the budgeting advice. Stayed for the whip 0:11 But for real. Great distinction. I'm still on my free trial of YNAB but I'm definitely going to be signing up because it makes it so much easier to break the "this is what my money already did" loop.

[@YNABofficial]

You can nae nae that debt away! -Hannah 🌻

[@addisonwethington9590]

I’m somewhere in between this! I budget and do really well in certain categories and used to be hard core in college but now I make big girl money so it’s turned to into both

[@YNABofficial]

OH MY GOSH, you should've seen me when I walked into my first big girl money (that I ironically made from a budgeting company). I fell into the lifestyle creep hardcore and... ha, I don't know if I can even say I was expense tracking. I was just straight up spending 😂 Working for YNAB changed my life, and now I get to share all I've learned along the way! It's hard, especially when you're in that new season of working full-time for the first time. Give yourself some grace, but know that you're doing the very best thing by asking these questions! I'm on your team, girl!! Humbled learners unite!! -Hannah 🌻

[@MustangChick922]

I was doing sooooo good March-May because I was keeping up with my budget and entering expenses as they happened (with $$ in the category!) while I was outside monitoring recess time. Since summer started everything just whooshed by and June will definitely be at least half expense tracking and hopefully back to budgeting this last half. Summer months are tough for this teacher to stay on it. I’m a pendulum between the two still at times. But I feel so great when I’m on the budgeting track not the tracking track

[@YNABofficial]

Oh Sarah, I think we're all pendulums! Your experience is so, so relatable. The awareness is what matters! I love that you can feel the difference between when you're budgeting and when you're just tracking your expenses! Budgeting DEFINITELY feels better. Way to go!! Rootin' for ya! -Hannah 🌻

[@jenniferremy7854]

I'm guilty of expense tracking sometimes.... I do mostly budgeting... When I'm lazy I expense track.... I think I needed to hear this video today so I can start being more aware! 🤣

[@c7042]

My expense tracking led to budgeting for me. I had to learn a little about myself first. I have $98 left over in March but will have $183 left over in April barring crises.

[@vincentapa1376]

Hannah, OMG another EXCELLENT video!! Just wonderful!

[@4citi]

This was a great video. I've learned to not close my eyes while driving and to actually budget better. Sometimes I feel like I'm following the app correctly but my budget always seems to get out of sync. Probably need to buy the book

[@lexymcavinchey7147]

One thing I really wish YNAB had was a separate color for the 'progress bars; and 'available' funds when you go over you GOAL, and not just when you overspend. I 'overspend' in categories sometimes because I went over my goal, even though the amount is technically covered. Does that make sense? I'd love for it to be at least an option to have a different color for certain categories I'm trying to be more careful on.

[@michelemitchell2656]

Thank you. I love the way you present this information. Its easy to understand and you do it a fun way.

[@YNABofficial]

🤠🥳 Fun is the only way to do it!! 🌻Hannah

[@thatguygreg]

The title got me. I will raise my hand and say I am guilty of expense tracking and not budgeting. We have a budget but it's there as a guideline based on historical spending patterns. But, my wife and I are lucky enough to be able to save more than 50% of our income and up to 70% if you count bonuses and commission. While adhering to a budget would make us even more efficient I feel it isn't worth the effort ito petty arguments that happen when we talk about where we could cut spending. My feeling is that if we're already saving that much, even though it may not be the max possible we could be saving, we are still doing pretty well. Saving and investing are the first things we do when we get our salaries each month. The rest of the money is there to be enjoyed. We have no consumer debt, car is paid off, and a tiny amount left on our mortgage (less than $28k) at 0% interest with 29 years still to pay so the monthly payment is less than $80 a month. We've worked hard to put ourselves in this position and life is short, enjoy it. But do it responsibly without sacrificing your future self.

[@YNABofficial]

Wow! That's an amazing blessing! Way to not give into lifestyle creep. I'm so afraid that I will wrestle with wanting to spend more once I make more, so I'm encouraged to hear stories of people who happily live well below their means! All of our situations are different, and it sounds like y'all are really in tune with your money. Thanks for sharing your experience!! -Hannah 🌻

[@mrqzbelle]

I definitely do this haha I plan every penny out at the beginning of the month but I don’t follow it so by the end of the month it feels like I’m just expense tracking... thank you for the reminder!

[@nurh6538]

I am LOVING YNAB! I’ve been expense tracking all these years thinking I’ve been “budgeting” 😅

[@YNABofficial]

YAAAAY!! I'm so glad!! It truly only gets more fun and more satisfying the longer you use it! One of the highlights of my day is updating my budget! 🌻 Hannah

[@Sunbeach24]

I think it is great that this program has allowed me to expense track and then reflect to see how I could be using it to budget better. I do budget certain amounts after payday, but most of the time, I spend more then I have. Simply in groceries! Groceries are expensive when you prefer organic and live on an island. Never enough extra cash to stow away for car repairs. Little changes along the way have helped me keep my head above water though. I always recommend this program to others. I love that shirt Hannah is wearing! Where can I get one?!

[@YNABofficial]

The shirt is from Carly Jean Los Angeles! You can find it online. However, they only carry items seasonally and once they're sold out they're sold out. BUT, they seem to be on a tie dye kick recently, so you could probably find something similar! -Hannah 🌻

[@allenaverill2461]

Great job explaining the difference!

[@rebekahpagedesigns]

My teenage daughters love Hannah. So bonus points for that!

[@amandamccomas2633]

I'm obsessed with your shirt!! Where did you get it so I can add it to my fun money category?? :)

[@DanielleThomas720]

This is why I came to the comments haha. We need to know!

[@YNABofficial]

Ha! Amazing! I purchased it from Carly Jean Los Angeles (an online boutique) a year or so ago! They don't sell this shirt anymore, but they've been on a tie dye kick lately, so you may be able to find something similar! -Hannah 🌻

[@mattmathai]

I do both expense tracking and budgeting. I adjust budget category amounts based upon the average of the last 3 mo of expenses in that category.

[@dewmara]

I budget every dollar when it arrives but often find myself moving money around between categories.

[@JohnKerbaugh]

From the don't spend category to whatever feels important! 👻

[@Patmorgan235Us]

It's totally fine and normal to move stuff between categories. Shifting money between going out money and grocers for example is totally fine. moving money from long term/savings categories is what you need to look out for.

[@SmallSpoonBrigade]

Unless you've got enough money to overestimate the categories and the self-control to stick to it, then you're going to be moving money around. Every year or so, you'd go into those categories and adjust it if you're using sinking funds. Otherwise, you should have a bit of money collecting in your account over time. If it's a moderate amount, you can just spend it on fun stuff. If it's more, you should probably invest it.

[@shanab.5483]

Hahah love the “whip” on the sly, Hannah!

[@shadorismartin]

I’m #2 sometimes. My husband and I had to be realistic and say “we just need to give ourselves more spending money.”

[@AlistairLevie]

The best most useful video yet! Thank you.

[@YNABofficial]

WOOT!! Yay, glad you found it helpful!! 🌻 Hannah

[@dalec290]

I have been tracking since I started. Determined to make the transition to budgeting.

[@waschosen-]

I would like to understand how to resolve the following situations: If encountering "You assigned more than you have", what would you recommend for the following two approaches? (1) Adjust the assigned items for each month to ensure the Ready to assign value is not less than 0 (allowing some items to be overspent) (2) Keep the "You assigned more than you have" value as it is, even if it is negative, without any adjustments, with the goal of finding ways to earn money to cover the over budget amount.

[@WILLIAMROOTBEER]

I mainly budget but if my circumstances change (whether it be a salary change or facing family financial difficulties) I review current expenses to see what I typically spend. This way. I can create a realistic budget that is maintable taking in the changes in my financial responsibilities at the moment. But for the most part, I create a budget and stick with it.

[@MaxBergmanis]

Great video, super helpful! Had a question about tip #1. I've been using the 50-30-20 rule on my projected income for the month, but now I'm re-thinking this given that you mentioned that we shouldn't be budgeting FUTURE paychecks. So my question would be how much of the money already in my checking account should I be using each month? Any tips would be greatly appreciated, thanks!!

[@skent]

Hey Max - I'll take a shot at answering. In my opinion, ALL of your checking account dollars should be budgeted, but that doesn't mean you need to use it all for spending. I have a budget category in YNAB called "Buffer" that I use to make sure I always have at least $500 in checking. I don't change that amount or borrow from that category - it is strictly there as a safeguard. Give every dollar a job - the job of the $500 buffer is to make sure I am never overdrawn. You could also keep that money in savings if you have overdraft protection that can use savings if needed, but my preference is to park it in checking. Hope this helps.

[@MaxBergmanis]

@@skent awesome I have an emergency fund that I started. Sounds similar. I don’t know how much to put in though. Anyways, thanks for the reply!

[@DonLafontaine62]

I do half and half. I have a lot of categories that are definitely tracking, and they all get funded from my buffer. Everything that has a known amount gets a goal. My goals are moving targets for certain bills, like electricity. It's very tempting to go into your long term goals for 'loans' but I force myself to never ever do that. If I'm ever in the predicament where I need to borrow money from another category I always go to the bills that can get covered in my next paycheck. The way I know that I am making progress is when the goals overtake the tracking category. You can visually see the improvement.

[@AUSSIEYNABBER]

This explanation was how I got my cousin hooked on YNAB!

[@ShaunVictor2507]

Need to switch to budgeting. Have used ynab a few years back and budgeting properly allowed me to pay off high medical bills. Thanks for the video and reminder on how best to use the app.

[@YNABofficial]

Wow! Shaun, I will validate you, it is HARD to get in the habit of true budgeting! You're not at all alone, and I think *everyone* ebbs and flows into expense tracking every once in a while. We're only human, after all! Congrats on getting so many bills paid off, and feel free to drop any questions your ever have in the comments, or suggest different video topics! -Hannah 🌻

[@ShaunVictor2507]

@@YNABofficial yeah I've got the habit now. One video I'd like to see, and maybe I missed it, is how best to recover from a heavy unplanned financial hit. Is it best to try and fix your budget or just start over? I recently bought a house and I had most everything covered and budgeted for in YNAB, but, as is the case with a new house, a whole wack of extra expenses came up so my budget doesn't look great 😂. I feel I can get back on track with my current budget, would that be best?

[@taniab2018]

I am generally a budgeter now. The one thing I have noticed is I do give myself a bigger cushion than I can use or even want to use in a couple of my discretionary categories (stuff that is definitely wants not needs) so that if, say, I need an unexpected extra tank of gas because I did more driving than I anticipated, I have a place to take $ from . For the first time ever, since I started using this system, I have $ left over at the end of the month, because I can't spend as much as I've put in certain categories. Even groceries... I just don't eat that much as a single person.

[@watchthesefools]

I started using Ynab for a month now staying within budget is almost addictive like playing a game. I have used other tools like mint but these auto categorize for you and you aren’t forced to manually keep tabs. It was kind of confusing at first but now I get the hang of it.

[@YNABofficial]

I always feel like it's a game too!! It's strategy, it's technique, it's checkpoints and check-offs. I love it. Gamify anything for me and I'll do it 😍 🌻 Hannah

[@danmantena4676]

Great video! budgeting tip #2 is something i need to get better at.... What is the YNAB-equivalent of driving, looking through the front windshield but never looking at the rearview mirror? That is how I drive lol

[@OscarArbelaez]

Using YNAB as an expense tracker is pretty cool too 😎

[@baggetta]

Wonderful teaching, entertaining host, important information, great video production

[@conureron3792]

Love the auto analogy.

[@mightyiam]

I love this video. And I will give YNAB my money as soon as it supports multiple currencies in the same budget. The very day.

[@lavs23]

Great video, we've been doing a little bit of both. Budgeting for our bigger goals but also doing a lot of overspending on categories and blaming it on inflation. We're definitely eating out more because of inflation.

[@cynicalrecidivist2026]

On a side note, I love that top.

[@YNABofficial]

On an additional side note, THANKS. From Carly Jean Los Angeles :) -Hannah 🌻

[@rorysparshott4223]

Expense tracking is fine when you're just starting out, as it's hard to budget without seeing what you spend first, but it should be for at a maximum of 3 months.

[@raulvelezguitarcovers2874]

As usual, great practical tips from Hannah and also a great and funny way of communicating them. Great video with useful advice, thanks!

[@macronencer]

Those signs of expense tracking were interesting - I do all three of them, but in different categories. Some of my categories are literally only for expense tracking, usually for unexpected costs that can turn up but are small (e.g. public EV charging, because I don't drive regularly). Others are just really hard to budget because they vary so much so I regularly overspend and carry forward - household supplies are a great example of this because purchases can pile up all in the same month and be significant amounts, depending on what you happen to need for seasonal reasons etc. I've just moved house as well, so it's not easy to look at history as the new place has different costs. I'm happy to say that I do proper budgeting for quite a few of my categories, too. TL;DR - I'm halfway there :D

[@mikeroyce8926]

A very helpful video - thank you.

[@Apollon0077]

I also realize I'm spending 99% of my time on YNAB tracking expenses... damn! Taking so much time to reconcile....

[@TwoOnlyChildrenxoxox]

Pre-engagement filming? 😉 Sorry. I’m listening. Carry on.

[@MaxGrey03]

my first thought: "Where's the ring??"

[@YNABofficial]

Haha, yes! I filmed this earlier this spring! Nothin' to worry about here, still happily planning a wedding :) -Hannah 🌻

[@TwoOnlyChildrenxoxox]

@@YNABofficial You know we’re Team Hannah.

[@YNABofficial]

Love you guys! Thanks for looking out for me :) -Hannah 🌻

[@EricaLucasLoves]

The less Amazon shopping reactive method 😂😂😂😂 so true. I’ve said that.

[@lscanlon9908]

Go Hannah! Haha I love the style of these videos.

[@keenheat3335]

strangely enough, dieting and losing weight also following this budget/expense pattern. If i know a social event is coming up and that's going some range of calories surplus, I pre-paid these calories budget weeks before by eating less/exercise more prior to the event. Although measuring the input/output calories number is a bit more tricky than tracking money. Since you can only measured indirect scalar like weight, and rely on nutrient label to estimate the calories in take. Incidentally if you actually used a caloriemeter to measure the calories content of most store bought food, the actual calories is about 15-20% higher than reported on processed food. On "organic", "healthy", "locally grown" food, these usually have around 50-70% higher calories than reported. So in term of calories budget, need account for that mislabeling. I think the issue is that "organic/healthy" food tend to be less scrutinize by the FDA, so they end up getting away with wildly inaccurate nutritional label. Compare to processed food, which due to bad public perception, tend to get scrutinize more, and as a result have more accurate nutrient label.

[@vicentemoscardo]

What a fantastic video Hannah, congrats

[@AB-py6jl]

I love how Hannah has her own official YNAB art now lol

[@IamPrettyInPink]

I am guilty of adding in my paychecks in advance. I once had a year worth of paychecks in there and realized I was depending on the future funds before it even happened and not dealing with the money I have today. 😖. I 💕you YNAB.

[@kyleridolfo]

Great video, what a good reminder

[@elizabethman7313]

I am transitioning from tracking (=backtracking?) to YNABing and I’ve just moved my bank app off the front page of my iPhone and , not only put YNAB on front screen , but put it in pole position next to my right thumb! I’ve been binge watching YNAB videos for the last week- the Budget Nerds , Nick True on Mapped Out $, but Hannah has a quirky, pithy delivery that’s so charming and makes me think I might have a chance at this ’adulting’ after all….

[@YNABofficial]

Oh Elizabeth, you TOTALLY got this. You sound like you are putting in the WORK, and that's the biggest first step in becoming the master of your money. You got this girl!! Keep on keepin' on! -Hannah 🌻

[@colinmccranie636]

I've definitely shifted to budgeting more since using YNAB than I ever did with Mint. Great advice here. Though because we still have extra cash left over each month and I hold a chunk in a holding category to sweep over to investments, I still expense tracking somewhat I suppose because I know there is that category that I can always cover a little overspending with. Or is that just rolling with the punches??

[@YNABofficial]

That's a great question! I think as long as you're aware that you're covering overspending with money you were wanting to budget into the future, it's really whatever you want to do with it. I definitely end up doing the same here and there-life just happens and sometimes we gotta borrow from those "extra" or "future" dollars to cover our choices or circumstances in the present. Follow your own convictions, and it'll become clear overtime if you you like that method or want to preserve those "holding dollars" for the future. Great question! -Hannah 🌻

[@SmallSpoonBrigade]

I think it's worth noting that this isn't an all or nothing thing, as long as you've got the bulk of your money budgeted, it's OK to have a small percentage of the total amount not budgeted for. But, if it starts creaping up, then you're likely to run into problems. Or, if you're borrowing from funds that aren't there for that purpose. Personally, I like having a fund that I can raid as needed as long as I can repay it without spending all my income to do so.

[@kukurukuru04]

I'll be honest, I live for the bloopers sections of these videos 🤣

[@YNABofficial]

I'll be honest, those kind of people are my favorite kind of people. ;) -Hannah 🌻

[@expressivism]

@@YNABofficial give dobs to all their jollars

[@SuHwak]

Would be great to have to do less expense tracking by importing transactions automatically! The only one that used to work (AMEX) doesn't anymore recently. Please make use of PSD2 API !! (a YNAB user from The Netherlands)

[@YNABofficial]

Hey Micha! If you haven't reached out to support in a while, shoot em an email! Fill then in on your situation, and they may be able to try out another import provider for you. You can reach them at [e-mail]! -Hannah 🌻

[@janet6962]

This is JUST what I needed! It was a very clear explanation, easy to understand and I'm going to work on in starting today. Thank you!

[@Baoran]

I am starting to wonder if I do need budget in the end. I end up saving way too much into each category compared to what I actually spend so I never really need to check before buying even something really expensive because all categories have so much buffer that even if the category itself wouldn't have enough I know other categories have so much buffer that I can still move around the money between categories that I really dont need to check when buying something. Buffer is good that I know I would survive half a year even if I stopped earning any money right now but it also makes it so that I dont really need to check if I can buy something before buying.

[@michigan_616]

just found your videos, thanks for the info! question: when you're budgeting for future expenses, are you moving money into a different bank account (savings) or just maintaining a running total of what's set aside?

[@toopunkrockforshul7933]

I keep pretty much all of my money in my savings so it can earn as much interest as possible (I keep a bit in checking in case I need to get money out/write a check quickly) and use YNAB to be the "running total". That's the thing I like about it, its easy to keep track of what your goals are and how much more you need to reach them, without having to move things around between accounts. I think they have an article on their website about how you don't need multiple accounts as well!

[@starbucksmocha88]

I do the same as the above commenter. Keep most of my money in savings with a small amount in checking and then just separate things in YNAB without moving them around. It's nice not having to have a bunch of separate accounts!

[@geminiblue43]

Where did you find that shirt ??🤩

[@YNABofficial]

I got it from Carly Jean Los Angeles! It was about a year ago, but it's super soft and stretchy and super comfortable. Maybe they'll carry it again or something similar! -Hannah 🌻

[@geminiblue43]

@@YNABofficial well it is awesome!!

[@DeRien8]

HA *HA* ! I know it was probably a number pulled out of the air, but I'd love to only have to budget $500 for rent! $1450 for a one bedroom is a huge pain. I use expense tracking to estimate expenses beyond the monthly bills, and since I work a minimum number of hours, my monthly budget has an "overall" view to see what I'll have free at the end of the month with the weekly/biweekly paychecks, and a more granular view to check how each week will progress as time passes.

[@joepall323]

Shouldn't I make a fixed category for YNAB ?

[@mattsarff2793]

You really hit me where it hurt here

[@CrimBlack]

I feel that if you've just started being a wine hamburger, you kinda need to expense track for the first few months anyway just to get a true idea of how much each category needs to be budgeted for each month. Either that, or meticulously calculate it from previous bank statements, which is no fun.

[@YNABofficial]

That's a valid point! Sometimes we have truly no idea how much we spend until we can see solid, concrete numbers in front of us. Otherwise it's just a guessing game, and that can take a few months to iron out as well. The goal is to not stay there! Expense tracking has it's job, time, and place, but hopefully we slowly start to shift toward true budgeting once the ground underneath us gets more and more solid! -Hannah 🌻

[@MuEagle05]

wine hamburger! that's a funny autocorrect fail

[@LisaGallegos]

True but I’ve been expense tracking for 6 years lmao

[@MilnaAlen]

Don't American banks automatically do it for you yet? My online banking automatically categorizes all expenses I have had. Sometimes it gets a new expense wrong, so I check it once a month, but like 95% of it categorizes correctly. Well it doesn't get super specific, like it can track how much you spend in grocery stores, not how much of that is spent on candy.

[@cirkutpersonal]

@@MilnaAlen Actually a very small amount of banks will do category tracking. Some of the bigger banks do, but a lot of people use local credit unions, or banks that don't do expense categorization. Even so, it's even fewer that will actually let you categorize and build a basic budget, let alone something more powerful like YNAB provides. Being able to have all of my accounts in one place and automatically calculating how much has been spent from my credit cards makes it so incredibly simple to just pay what's in my budget category for the month and feel totally safe spending.

[@bobhouse9331]

This was exactly what I needed!

[@laabel5969]

thank you

[@erdman22czyk]

Here’s the thing…we have been expense tracking for a while, but we’re on the right track to budgeting instead…but I have one issue: how am I supposed to assign money a job at the beginning of the month? I haven’t made any money on the 1st… Before I got married, I was a budgeter, and I generally stayed one month ahead so I could assign all the money at the beginning of the month. But this has been a real learning curve for my wife, and we’re finally, after 4 years, transitioning back to budgeting rather than expense tracking. But we have so many more expenses now! How do we get a month ahead??

[@toopunkrockforshul7933]

I think using goals might be helpful for that situation? So even if you don't have money to budget right away, when you do get it you know exactly how much you need and what is the top priority. I especially like that YNAB has the "underfunded" button in the sidebar, which if you have goals set, you can press when you get paid and it automatically puts it into the goals that are due soonest! Good luck!

[@meskobe]

Getting a month ahead is simply another money priority that you need to decide on how important it is to you. You can even make a category and goal for it! For me, I used "windfalls" to get to a month ahead -- for example, tax refunds, work bonuses, pay raises, severance pay, cash gifts, inheritance, short term investment gains, etc. But even if you generally don't have windfalls, you can build it out over time just like you would any other savings goal. Those large amounts just help it happen faster. 👍🏼