How Does It Feel to Be a Month Ahead?

Getting a month ahead with your money is a milestone for many YNAB'ers. Being a "month ahead" means that when the first of the month hits, all your bills and expenses for that new month are already paid for -- the money for them is sitting in your bank account, and assigned to the respective categories in YNAB, waiting to cover those costs. And boy does it feel good!
In today's episode, Ben and Ernie share stories from YNAB'ers who have achieved that milestone of being a month ahead, and how it has relieved them of stress and anxiety, taken away the fear of job loss, and reduced the overall mental overhead required to keep track of when paychecks hit and when rent and utility bills go out. When you are a month ahead, you break the paycheck to paycheck cycle and life gets a lot less stressful -- at least your financial does.
Share your YNAB wins with Ben and Ernie!
[e-mail]
Timestamps:
00:00 Intro
00:55 Who are these guys anyway?
02:50 What does Month Ahead mean?
06:50 Reducing anxiety and stress
16:03 Stop stressing about work
25:44 Put your bills on autopilot
41:23 YNAB Wins
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#ynab #moneyhabits #personalfinance

[@erinkerbs6789]

Between my husband and myself, we have 3-5 paychecks per month, and we are 2-3 paychecks ahead. It's a start.

[@erink3105]

Being a month ahead is the BEST ever. I can't imagine doing it any other way. My teens are already a month ahead and I hope they stay that way their entire lives

[@YNABofficial]

What an amazing legacy you're leaving teaching them that principle so early! ~BenB

[@YNABofficial]

That's the way to do it-start as early in life as possible! I've had the same thought with my boys. Get a month ahead now and never look back. ~Ernie

[@keelydishman1892]

My next goal is to get us a month ahead! I’m a new YNAB’er and I’m so excited!

[@YNABofficial]

🥳🥳🥳 ~BenB

[@ninitasporseen5200]

I love when I’m setting up a new bill and get asked when in the month I want it billed and the honest answer is “It doesn’t matter.” The first, the fifteenth, the eleventy-seventh. Whenevs.

[@YNABofficial]

Yesss! It doesn't even matter. So freeing! ~BenB

[@YNABofficial]

I always end up picking my favorite numbers 🤣 ~Ernie

[@ninitasporseen5200]

@@YNABofficial This is why so many of my bills come out on the seventeenth. Hahahaha

[@oravavaara]

YNAB win: got a once-in-a-lifetime travel opportunity while undergoing an emergency bathroom remodel shortly after vet expenses drained my reserves. I remembered Jesse's saying "debt kills creativity." I don't have time to take on a side hustle, but I found some things around the house I could sell for cash, carefully planned the bathroom remodel, and tightened up a few other categories. Now, I already have enough money for my flight to London and I have an extra 15% budgeted for the bathroom remodel as a contingency! I never could have done this without YNAB!!! I am sleeping easy knowing I have a cushion and having the confidence I will be able to make my October trip happen.

[@RachelSmith-rq5ku]

I use YNAB for my business, and I’m always a month ahead (plus an emergency buffer of 2 months just in case), but the BEST thing I’m ahead of is budgeting for vacation time! I am taking a month off in September and despite earning no new income that month, I will stay a month ahead AND pay myself my regular paycheck. I freaking love YNAB!

[@nsane4twain]

You forgot Ernie loves to change up his budget and Ben says he will change his budget, but never does 😂

[@YNABofficial]

Oh, yeah-this one comes up a lot! ~Ernie

[@katrinahohbein1486]

We were about 1/3 a month ahead when my husband quit his job for health reasons. Even that little bit helped give us the peace of mind that we will be okay.

[@Ibakeandknowstuff]

The sense of stability I have being 3 months ahead is exactly what I needed. I do have an additional emergency fund but I feel way more stable knowing I’m covered through September right now.

[@michellebash]

🤣 "Confessions of a Budget Nerd" rant!

[@BethAnnesBest]

I've totally been guilty of having an overcomplicated system.

[@YNABofficial]

@@BethAnnesBest Sometimes I think we feel like it should be hard, so we make it hard. 😆 ~BenB

[@BethAnnesBest]

@@YNABofficial I agree! I can say YNAB has helped me make my system simpler. I see those systems where people have 30 savings account for all their categories and it's too much for me.

[@raychelle8]

I am 2 months ahead and I love it. I probably don't need to be 2 months ahead, but being able to do that feels secure! What's really nice is that right now, with the cost of living SO high, I probably wouldn't be able to put money aside to grt a month ahead, so I'm glad I built that fund up when I had the means to.

[@KimberlyR-st1dl]

You guys are the best, thanks!

[@jordanwilliams9300]

My theory on why folks get you confused: People default to the "Bert & Ernie" heuristic for a "Ben & Ernie" duo, and your vibes/dynamic is opposite that.

[@peteremerson8306]

Great inspiring episode!!!

[@libbysworld7649]

I was just thinking that it's been a while! Exciting to see you both! 🙂

[@YNABofficial]

Every two weeks! We come around right when you start to miss us. 🤣 ~BenB

[@erato1]

My wife and I no longer get mad paying bills.

[@YNABofficial]

It's weird-paying bills almost becomes fun! ~Ernie

[@christypollock5874]

This is going to be so hard to work on getting one month ahead! however, I am working on it, I work 2 jobs, about 65 hours a week, 6 days a week. And everything I make goes out to debt with a bunch of payments! :-(

[@Jacobhopkins117]

Noticible production quality improvement here :) keep up the great work guys!

[@YNABofficial]

Well, this was the first episode with Ben's new Mac! ~Ernie

[@Monkey-oy1us]

Given that ‘expenses’ also include etf investments, whenever im a month ahead, i just buy up ETFs (vti, schd, vtsax)… so I don’t even see it. It’s definitely a nice place to be

[@RyChOr2005]

I also have been dealing with only one of my bills not on auto-draft for several years, the water bill! However that has just changed recently which has been amazing... but they charge a $2 processing fee for using it 😭

[@YNABofficial]

See I don't get this because it guarantees they'll get paid, so you think they'd encourage it. My electric bill takes $2 off the bill for auto-drafting. Come on! ~BenB

[@symoneb21]

Where do I find my total amount of expenses I need to get ahead? (New YNABER)

[@funtechu]

20:00 sales and marketing are *very* different. I'm similar in that I hate sales (burnout skill) but I enjoy marketing.

[@YNABofficial]

You're so right! I feel the same way. ~BenB

[@AngelStormee]

Bert and Ernie speak very slowly, don’t they.

[@christypollock5874]

I don't see how getting a month ahead actually make it to where one can pay off debt ? all the money needs to be kept for next months' bills?

[@YNABofficial]

Being a month ahead is a buffer that gives you flexibility. You have more options because you have more time between when you were paid and when you spend that money. Imagine a big car repair where you have to scrape together money to pay for it. If you're a month ahead you can look at all of your bills and expenses for the NEXT month and make adjustments. Since you have a lot of options, you may have the ability to make cuts from things other than extra debt payments. Whereas if you're paycheck to paycheck, you won't have as many options because you already used a lot of your money to buy or pay for a whole bunch of things and you're kinda forced to cut from priorities like extra debt payments. When it comes to debt, I think being a month ahead allows you to more consistently tackle your debt aggressively. Hope that makes sense! ~Ernie

[@user-di4gp6zy1m]

Once you get a month ahead are you always a month ahead

[@YNABofficial]

That's right! Especially if your income is predictable, you only have to do it once! ~BenB

[@YNABofficial]

No. You could decide to spend the money now that you set aside for next month. This is why I'm always so vigilant with protecting those next month dollars! ~Ernie

[@user-rz3rl9ol9x]

No. If you lose your job or income, even if only for a month or two, you will use the money that is assigned ahead. You will then have to save more to get ahead again.

[@chelsea2690]

Okay wait... Why did I also have you guys mixed up?! I usually listen on Spotify and had to come check for myself! I was wrong!! The world feels upside down now!

[@YNABofficial]

Haha, I am sure this is very upsetting for you. ~BenB

[@jordanwilliams9300]

My theory is it's a Bert & Ernie confusion

[@lifeastheonlygirl]

Maybe a strange question, but where do most people keep that money when they are actually a month, or more, ahead? Does it sit in the checking, or in a savings and get moved as needed? I'm trying to wrap my head around this still. We're starting this fall with 2 kids in college and are definitely not there yet.

[@bethanymacdonald9665]

Different people do different things. But since YNAB doesn't distinguish between your month ahead money and all the rest of your money, it doesn't matter what you choose. I keep a specific amount in my chequing account and the rest in various savings accounts. So technically, the money coming in this month might actually be spent this month. As in, if I dealt only in cash, the physical dollars I received from my paycheques in July might be the same dollar bills that I spend at the grocery store in July. It's not that I physically set those paycheques anywhere. The money I saved in order to be a month ahead is just buried somewhere in my various accounts. It just gets set aside in YNAB.

[@YNABofficial]

100% what Bethany said. It might be hard to conceptualize at first, but YNAB doesn't care which account you keep the money in. What matters most is the job you've given each dollar. This mindset shift will happen over time as you get in the habit of looking at what's available to spend in your categories instead of relying on what's in your account. Hope that helps! ~Ernie

[@KDUBBDANCER04]

So do you put the one month of income in the account you pay bills/expenses with? I want to try this method, just a bit confused. Don’t know how to start

[@YNABofficial]

It doesn't matter where you keep the money. For simplicity, you could just keep it in your checking. The way it stays organized is by assigning those funds to your next month categories. ~Ernie

[@KDUBBDANCER04]

@@YNABofficial Ok! To start this method, I will simply save one month of income. After that, what happens next? Lol

[@YNABofficial]

@@KDUBBDANCER04 here are the steps (1) figure out how much it costs to be you each month. This is the amount of money you need to save to be a month ahead. For me, this number includes all monthly bills and expenses, debt payments, non-monthly bills and expenses that I plan for each month, fun money, and long-term savings goals. (2) save that amount and assign it to your next month categories. (3) rinse and repeat with each paycheck. Keep in mind, you can get a month ahead in stages. Maybe stage 1 is being a month ahead on housing. Stage 2 is being a month ahead of all your monthly bills. You don't have to wait until you have a full month worth of money to enjoy the benefits of being a month ahead! If it would help to see a visual of what I'm explaining here, we have a replay of our Month Ahead workshop that you can watch www.ynab.com/free-workshops Let me know if you have any other questions! ~Ernie

[@KDUBBDANCER04]

@@YNABofficial Thank you!

[@THU350]

how does a month ahead actually look like? do i have a month ahead in my checking or in savings is fine😅

[@YNABofficial]

Being a month ahead looks like a fully funded next month Budget before that month actually begins. And you're right, it doesn't matter where you keep that money. ~Ernie

[@MRGO0OSE]

Is being a month ahead having at least 30 days age if money?

[@YNABofficial]

Not necessarily. You could have money in the bank that is 30 days old, but still not have enough to cover the rest of this month's expenses and all of next month's. However, as age of money increases, it's a good indicator that you're moving in the right direction towards being that full month ahead. ~Ernie

[@graffeodl]

When you get a month ahead you can do auto pay without stress. LOL

[@YNABofficial]

Yes! And that frees up so much space to focus on things that matter more! ~BenB

[@carlyellison8498]

Does the YNAB annual subscription fee automatically update in your budget every time it increases?

[@YNABofficial]

No, you'll need to update the target yourself. We don't want to get into automatically adjusting targets. That's your decision! ~BenB

[@YNABofficial]

It does not. All Targets need to be adjusted manually. ~Ernie

[@YNABofficial]

Sorry for the double response. Looks like Ben and I were unknowingly responding to a number of these comments at the same time 🤣 ~Ernie