How Ben & Ernie Got a Month Ahead

[@katherinestill1520]

I love this series so much. I am definitely a budget nerd and I have no one else that I am close with in real life that is also one, so this feels like I'm listening to my people :)

[@YNABofficial]

Aw! So glad you're here then! Nerds unite! 🤓 ~BenB

[@betterlifebroadcasting7547]

There's a 3rd way! I had a couple of irregular bills. My water/sewer came every second month on the 21st, and my garbage bill came every two months as well, but on a different day. I used to get so frustrated trying to remember it! Finally I got a "5th week" check, as we get paid weekly we get 4 of those per year, but I've always just budgeted for 4 weeks in a month. I just paid the whole garbage bill for the year so I wouldn't have to think about it anymore. With the next one I paid the water/sewer for the year, and so on. Eventually I'd freed up so much operating capital month over month that I was able to tackle larger bills and do the same thing. Finally I realized that all my regular bills electric, gas, water, garbage, cable were all paid ahead by between a year and 6 months. As I'd done it spaced out over the year, they didn't "come due" at the same time so I just kept doing it by the year! After that it was easy to get a month ahead on the mortgage, and voila!

[@gaullaura]

I always budget twice - every paycheck goes into next month categories. Then on the 1st I zero out all budgets and reallocate. Generally it's always the same except for the goals that have roll over. But it's twice as much fun.

[@equality822]

I'd love to hear more about the "fresh start" in January. I'm in my first year of YNAB and I'm really enjoying all the nerdy details!

[@YNABofficial]

Noted! We're tentatively planning to post an episode on that toward the end of December. 😁 ~BenB

[@Ann-Marielivingonabudget]

I love that I'm not the only budget nerd that loves to take time budgeting! Budgeting those paychecks is so much fun!

[@meb4238]

My favorite video so far for the budget nerds. I totally nerded out on this one. I finally got a month ahead two months ago and I agree on how awesome it feels. Thanks for the video.

[@HNunyabusiness]

Been using YNAB years but never really dove into its capabilities that much. Such as emojis and those quick budgeting buttons. I’m really enjoying learning how to use it to its potential. All the videos are great

[@itsGabrielaCristina]

I haven’t started budgeting ahead. I am focusing on building my 3 month emergency fund, but after that I’ll take a break to get ahead and then continue my savings goals. Looking forward to it

[@chojay13]

2:12 This is me right now. I used to be able to at least pull out my mortgage on the first paycheck of the month before so i could pay on the first, but ive slid into such a place where now im really relying on that grace period. Im so excited to get back to where i was AND stop timing my other bills and just.... Breathe.

[@katiemoss6802]

Such a great chat guys. So good to hear different people's take on things. I love that your budgeting is too easy these days. As a self employed person, I earn income every day, which means either budgeting every day, messing with the original budget plan every day... or getting disciplined and budgeting to a category to fund next month and doing it all on one go. I'm more of an Ernie and have taken from YNAB start May 2015 til just last month to finally get a month ahead, so now I can do the all in one go budget. The first budget nerds video was a big inspiration to help get me to this point. Thanks guys!! Keep up the great budget nerd work!

[@heathfeath9411]

I know a few have already commented on it, but would love to hear about how you go about your Fresh Start at the beginning of each year.

[@YNABofficial]

Awesome! We're planning to post an episode about that near the end of December.

[@DWenning]

About automating bills: My town is similar to Ben's! They charge a bunch of money to pay by eCheck, credit/debit card, etc. Sending a paper check is free though. They can deal with the extra paperwork if it suits them, I guess. So I have my credit union send them a paper check every month; which the credit union does for free. So see if your bank/credit union does something similar, Ben!

[@YNABofficial]

It just makes no sense to me, because surely processing paper checks is more costly than processing online payments. AND they'd be more sure to get their money if they let people automate more easily. Luckily, my city does let me pay online without a charge. So that's a big step. But they still won't let me automate it. ~BenB

[@TamaraHenson1984]

@@YNABofficial I'm surprised youre not like me in thinking that I actually like not having it automated because I sit down and pay things when I'm looking at the budget so it extends my time with the budget giving me that I accomplished something feeling.

[@conureron3792]

Really wish I discovered YNAB about a decade ago!

[@ReeceBowman1867]

So True!!!!

[@amberelstad4684]

I managed to get to the point where I can start the month fully funded and that's a win in my book! I get paid on the 15th and the last day of the month so like Ben, soon as I get paid on the 15th I start at the top of the next month and just go down the list and then the last day of the month I'm filling out the rest of the next month. Usually there's a few hundred dollars left so I'm always 'future budgeting' into the following month so that there's nothing left in To Be Budgeted. I also constantly round up so some of my bills, like my Internet changes every year but I budget the highest amount they've charged me and only pay what they ask for. I do this for a number of bills and let the leftovers build until I can opt to not budget anything that month. I see that as my own way of growing the amount of future budget funds and soon I'll truly be a month ahead.

[@Mustela8098]

Ernie. Can you go over your prep work before you start your fresh start for the year? Do you keep your money that you budget for Jan as "To Be Budgeted" or do you have Jan in your current year temporarily? I would love to hear more of prep work cuz there is a video Ben went over how to use the feature. I hope you guys make this video as part of your guys series.

[@YNABofficial]

Hey Willie! Ben and I are thinking we dedicate an entire episode to this topic (so stay tuned!), but here's a brief overview of my process: (1) delete any old accounts and categories, (2) with my old budget open in the mobile app, I start creating my new budget in the web app. So if I had $500 in Auto Maintenance in the old budget, I would budget $500 in the new budget. (3) If necessary, I re-prioritize my dollars. With every category I'm asking something along the lines of "Do I need these dollars here?" -Ernie

[@Mustela8098]

@@YNABofficial You guys rock! I love how you guys nerd out about YNAB cuz it makes me feel I'm not alone. Loving the series!

[@melineegauthier1752]

You, Hannah and YNAB team made it so fun! When you said you were exited to budget then kind of disapointed that it took you only 30min, I totally related, and i'm a new user... Just had a first paycheck to budget and i was so excited! and it was sooooo quick since i prepared all the categories previously with targets and priorities (and emojis 🥰😅)... Thank you so much for releiving the stress it was to budget on excel sheets !!!!! 👏👏👏

[@mruppity64]

I’ve been using YNAB since about 2005 - it took me about 2 years to get ahead of my self on the budget - I’ve definitely changed how I use it over the years, as money became more available it became more a bank account tool, rather than a budget app, but since deciding to take early retirement, I’ve moved back to it becoming a budget. Probably one of few apps that I’ve kept with over the years - it’s definitely the best thing since sliced bread, as a British saying goes

[@RosettaDsouza3]

I name my month ahead category the next month, so right now it's December 2020. So it's super clear if I take money out of it, I'll be taking away from next month. But yeah it's super satisfying to budget out the whole month at the start of the month, instead of having to wait for the next paycheque.

[@chanelpinnock8904]

That’s a great idea! I go back and forth with using a month ahead category vs. budgeting straight into the next month. I may try giving the month ahead category the name of the next month, as you suggested, then hiding it.

[@LeslieNicole]

This was really helpful. I'm brand new to YNAB and I can't wait to get a month ahead. Things have been slow in my business so at the moment, I'm fingers crossed I'll make each next bill. Going over the "holding" category really helped me because I was wondering how to handle getting a month ahead with a variable income. I'm also glad to hear that budgeting gets faster. Right now, learning and setting up is taking so much time. It feels good though to know I'm finally going to get a handle on my finances.

[@carolea7158]

2:30 about that grace period: I made a mistake when I first started renting and I paid the rent after the due date but before the grace period. But there was an issue with the account at the bank and so the payment didn't go through even though I had the money. It turned into this whole thing and took months to resolve with the leasing company. Long story short, keep in mind that some unexpected issues can happen that mess with the timing.

[@frogginator-x]

Love seeing some examples of what "a month ahead" looks like in practice. (As far as holding category vs budgeting in the next month.) It makes the concept seem more concrete, and therefor more actionable!

[@gracedesilva8304]

You guys are the best. I am going to make a “month ahead” category, but keep it in the month ahead, so I’m not tempted to use it now. I will just budget forward to that one category, then move to TBB on the first of the month. A combination of both of your ideas. Thank you!!!

[@YNABofficial]

Great idea, Grace! ~BenB

[@mzook7854]

Yeah, that's a good idea because you won't be able to see that category's $$$ in the current month, right?

[@ottobentley258]

you all prolly dont care but does anybody know a trick to log back into an Instagram account?? I stupidly forgot the password. I would appreciate any tips you can offer me!

[@valeriemartini6315]

A month ahead is so awesome I totally agree. So freeing.

[@tussilagowatching]

I get paid once a month and I share the feeling of the budgeting going too fast and not getting to enjoy it enough. So I often do it a couple of different ways (getting the same numbers) just because XD Another benefit of budgeting a month ahead as a low wage temp worker with variable income but paid a month after I've done the hours is that I know already by the end of the month how many hours I've done and if I'll need to apply for government aid to cover my essentials the next month.

[@mtaylor9235]

Love this series! It took me 5 months to get a month ahead (thanks in part to tax refund, stimulus check, and third paycheck). Once I have a decent ER fund, I would like to get 2 months ahead 🥰 - mostly for the psychological perks.

[@ceciliaruns72]

Love the time spent budgeting, haven't yet used the quick budget. Love the idea of a new budget in January. Thanks guys, great show!

[@tulliandar]

This is how I do it too, and it’s extra fun because you end up with money in tbb from the categories that ended up with extra money due to roll over, so you get to move some to the next month, or beef up your fun money

[@aaronstephens9339]

Not gonna lie, I am unreasonably proud to finally wear some YNAB swag - I have Ben’s same shirt!! #budgetnerd

[@lawandahodges3002]

I like the holding category method.

[@gasfrommyanusi0i594]

Love the budget nerds. I learned th value of scheduled transactions from you guys

[@conureron3792]

Yep: the fun part is when you get that paycheck! Then budget it! I am budgeting every other week....not really monthly. And yes, I budget each individual category by category. I really don’t know how to use those automatic buttons (that might be a worthwhile lesson topic?).

[@derekowens2427]

Love this! I've been in the "have a bunch saved up but should just get a month ahead" category myself for a while. Time to make it happen!

[@libbysworld7649]

I may be a little over the top but I personally am saving for an emergency cash reserve $10,000, a month ahead $6500, A $1200 checking account buffer, and 3 - 6 months of necessary expenses ($15K). All of those. Also have sinking funds for home and car maintenance. I would consider both of those fully funded at about $5k apiece. But would never stop contributing to them. I also would like to save about $30K over the course of several years for a replacement vehicle, if needed.

[@conureron3792]

I got a month ahead - but now, I’m more in the “Ramsey mode”: focus on paying down debt, debt elimination for the next 6-7 months. Then, build up emergency cash reserves. ...for the next year. So I won’t be aging my money much. Plus, just had a major car expense - that wasn’t so financially difficult due to YNAB (saving for it). (My money age dropped quite a bit due to that expense).

[@ktsterlin9304]

Don’t stress the age of money too much. I am finishing up paying off debt and for the first few months I paid the debt at the same time and my age of money was 30 days and I clearly had the next month budgeted. I still have next month budgeted but have been paying the debt when I get it instead of waiting for the same time each month and that caused my age of money to go WAY down. (6 days and I still have Dec budgeted) Age of money is an amazing feature to see and I love it. Congrats, what you’re doing is working even if the age of money takes a hit.

[@pinguincoder]

I also do a fresh start every year :D just nice tradition to do.

[@reginasloan2201]

I've never done a fresh start, but I may do it this year.

[@jenniferselespara1327]

Having money at the end of the month is the best

[@hmspain52]

Ah, living on the "float" LOL So glad those days are OVER!

[@tulliandar]

When I started using YNAB the default categories were different. I can’t recall if it had a “Buffer” category, or if I added it. But I just kept added to “Buffer” until it was big enough to cover a full month. I kept budgeting to the “Buffer” account each month, then at the beginning of the month, taking money out of it to budget. It was a long time before I realized I could hide “Buffer” and just budget in the next month.

[@brianfidler8514]

Thanks gentlemen. The "live on last month's income" rule (before it became AOM) was the most intimidating and the most esteemed of the goals I came into budgeting wanting to accomplish. I figured it would take me a couple of years or more at my rate to get a month ahead. To my surprise, it ended up taking less than 6 months. I agree with Ben -- budgeting became "beautiful" then. It was a game-changer for me: I could see what was ahead and had enough time to respond to it rather than feeling the frantic sense of finances being constantly on the edge. It can be challenging to get there, but so, so worth it. That was 7 years ago for me; I wouldn't want to budget any other way. I understand why YNAB changed the rule from live on last month's income to age your money. It makes it less intimidating. But getting a month ahead should be the goal of aging money, in my view. It felt like instead of trudging through a forest at ground level, lost, directionless, hoping not to fall down a ravine or hit an impasse, I was able to step into a helicopter and begin seeing the financial landscape (and with it, personal and family goals, values, and vision) at a 1000-ft elevation. The trees are still visible, but I can also plainly see the forest and have time to set a course and make course corrections should we need to.

[@YNABofficial]

👏 👏 👏 Thank you so much for sharing this, Brian!

[@carolea7158]

Much of my money is in wish farm categories. (I'm embarrassed to say I have over 20 wish farm categories). How do you balance getting ahead vs wish farm categories?

[@margaretcraig6538]

I am retired and get my pensions at the beginning of each month. My YNAB budget says that my "age of money" is 30 days but would you call that a month ahead if I am budgeting everything that comes in on the first? It doesn't sound like a month ahead to me.

[@islandgal9309]

I'm thinking when my Emergency Fund hits my initial goal of 3k (not quite 3 months pay, that would be closer to 4k, it's just the goal I picked initially) I'm going to try "get a month ahead" according to YNAB.

[@cjmiller5972]

I want to hear about your biggest budgeting mistakes and how you handled them. What did they teach you? Where did you find the opportunities in the errors, if you know what I mean.

[@YNABofficial]

Great idea, CJ! I'll add it to our list of ideas. 😁 ~BenB

[@tulliandar]

I’m 99% mobile app, if it supported reconciling, I’d be 100%

[@elizabethman7313]

It does now!

[@StefanBocken]

When budgeting next month before the 1st, how do you handle the goals that roll over? Do you budget the full total or an estimated amount? I'm thinking of the "Needed for Spending" categories. At the moment we budget next month with the previous month's income but wait until the 1st to handle those type of roll-over categories. (oh, and seeing "100 days" as Age of Money is pretty cool, although we're not 100 days ahead in the budget. I like the silo explanation from Jesse, where money comes in through the top and leaves at the bottom and the time it takes is the age of your money.)

[@rachelparent2720]

I'm new to digital budgeting, and I tried a lot of apps before ynab. I'm always surprised that you say people find the ynab method strange - I feel like I've been trying to do the ynab method my whole life without an app. I was so frustrated with apps like Mint that wouldn't let me do budgeting this way and when I found ynab it immediately clicked.

[@GG-zv9ku]

Still confused about how much should I have in car repairs house repairs stuff vs move that money to next month

[@melissaquesnel1603]

I hate the mobile . I can't see as much information on one screen as I can on the web app . I follow my budget more on the web app

[@TaliyahP]

I think the Needed for Spending goal problem is a resolved now? I just tried fully funding one of my categories and the next month still needs the full amount to be budgeted.

[@becki_plans8193]

Hi guys, love this video. I’m new to YNAB. So when you guys speak of getting a month ahead, is this just for fixed and variable expenses, or should it include savings as well? Thanks.

[@YNABofficial]

Hi Becki! It's for savings, too! The goal is to be a month ahead with all the things you spend money on and save money for each month. ~Ernie

[@jenniferselespara1327]

That is what I do I hold all my income in one account and on the first we pay all the bills

[@PurpleRose8725]

I have to know, if money is assigned for next month, but life happens, how do you move it to this month? I like the assignment method best, but YNAB shows negative if you just take from that next month. Out of sight is better so my husband doesn't think it's available.

[@YNABofficial]

You need to unassign from the next month and move back to Ready To Assign. Just make sure you're only unassigning the amount you assigned in that next month! Once it's back in RTA, it will then be available to assign wherever you want in the current month. ~Ernie

[@desiraestarling2600]

I would like to see a walk through about what the process looks like if you only have a start on the 'next month'. I assume you budget starting on the first with the amount you have held over (say 1/4 of amount needed). Then you complete the month as new paychecks come in and hopefully reallocate the 'next month' from the pay days as they roll in? How to do you keep tabs on making sure your progress grows? OR do you keep a 'month ahead' bucket until it is fully funded? Same for when you put it forward by category, how can you be sure you are getting closer to 1 full month ahead without having to remember on your own where you ended the month before?

[@YNABofficial]

This is a great question, Desirae, and I'm super sorry I didn't get back to you sooner. So there are really two methods for getting a month ahead, and you've identified them here. The first is to budget ahead as much as you're able to incrementally until you are able to fully budget for the next month with money you receive in the current month. This approach is intuitive for a lot of people and it does have a lot of upsides. You get to reap the benefits of getting ahead immediately, because there is a lot of value in getting partially ahead even if you can't fully fund next month all at once. We demonstrate that approach in a couple places. Check out this blog - www.youneedabudget.com/the-one-month-buffer-down-dirty/ Or check out the Break the Paycheck to Paycheck Cycle workshop, which you can sign up for here - www.youneedabudget.com/free-workshops/ The other approach, which you mentioned, is to create a category for "Next Month." You can set a goal on that category for the total amount you need for a month. Once you reach that goal, you release that money back to To Be Budgeted, budget the money in next month, and voila! From there, you can stay a month ahead forever by budgeting all your future income into the next month! The downside of that approach is you don't get the organizational benefits of getting ahead until you fully fund that category, which can take some time. But the plus side is it's much easier to track your progress that way and that could be more motivating. Either approach is totally fine! I think the one that's right for you will depend on your personality and how long you think it will take you to get a month ahead. ~BenB

[@lexymcavinchey7147]

Hahah. "This Jesse guy knows nothing." That really made me laugh.

[@yazzy1979]

Ernie, I want to see what it looks like when you start over for the year I know they just changed the whole deleting a category cause I guess it used to cause problems in a budget do you experience that?

[@YNABofficial]

Now when you delete a category, you can merge the data from that category with another one. It eliminates all those previous problems, and I love it! ~Ernie

[@yazzy1979]

@@YNABofficial I would like to see your process on making a fresh start every year. it’s really interesting because it kind of relieves the pressure of having to be perfect and keep it going forever

[@gustinart9043]

Why do a fresh start every year?

[@patrickc1795]

Yes, I'm VERY intrigued about this. Video topic please!!

[@YNABofficial]

It can be a good exercise if you want to get a new perspective on your budget without all the baggage from the past right in front of you. It may help you rethink your priorities. We'll do an episode on it for sure! Probably at the end of December.

[@gustinart9043]

@@YNABofficial thanks! Look forward to that.

[@reginasloan2201]

the anxiety in me CANNOT hold money until the first. I love budgeting too much lol

[@jenniferselespara1327]

Its nice to be debt free

[@reginasloan2201]

I budget the way Ben does it.

[@petrahuijts147]

Yeah, I'm a budget nerd. It's annoying that, if you're a month ahead, budgeting for the new month is like 4 clicks. Boring! (But great).

[@hmspain52]

I could not wrap my head around saving an entire month just to make some software program "happy" :-).

[@RobotechII]

That's not quite right, it's more about knowing you have enough money in your checking account when large transactions happen.

[@hmspain52]

@@RobotechII I learned, but it took a phone call to support to convince me! LOL Support was pretty easy on me. They said "That's when the magic happens!"

[@hmspain52]

@@RobotechII There is a stage in the YNAB journey where you just stop looking at your checking account balance, but check your YNAB categories instead. I suppose it was when my bank called saying I have too much in checking and should consider investing! LOL

[@YNABofficial]

Ha! I think I felt the same way at first, Harrison! The YNAB team convinced me, but I was skeptical at first. Now I could never go back! ~BenB

[@mizzpenguin2]

Ben you're always interrupting and talking over Ernie. He never gets to fully finish a thought. Maybe there's a delay or something. Otherwise I truly enjoy both of your perspective on being a budget nerd.