YNAB Workshop - Break the Paycheck to Paycheck Cycle

[@Zenas521]

Once you got this under control it might be a good time to start paying down your debt. Braking this cycle is a catalysis to your debt snowball. I payed off $26,000 in student loans five years early on intermittent employment. (I should also note I was expecting a $10,000 debt). I'm not the most go-getter kind of guy. If I was successful, so will you be. Think of the most extreme thing you ever accomplished. This is no where near that extreme, you can do this. Build your age of money to 90 days. Wile your doing that, put minimum payments to your debts. Once you have 90 days, put one months paycheck towards your smallest debt. If you eradicate it? Put whatever is left over towards the next smallest debt. Now your age of money is 60 days old. Now from here on out put tree to five payments on your smallest debt at a time. Build back up to 90 days and hit it hard again. POW! take that debt! Debt retards your cash flow. Don't let it get in the way of your dream.

[@ncabcabin]

So basically focus on your important expenses and attack your debt once your money is 90 days oldn

[@bjackson33333]

Thanks

[@deannemackness213]

I’m joining you from Bunbury Western Australia 🇦🇺

[@moamoe8038]

The best training for YNAB is thru Nick True...less talking but actual training. He has a lot of videos on youtube

[@DouglasWidick]

Thanks for posting the workshops.

[@YNABofficial]

You're very welcome! We're working on more.

[@deannemackness213]

Bunbury Western Australia Deanne 😊

[@terid6708]

Great training class. Thank you.

[@junebuckley4155]

June from Oakland ca

[@102mzr]

Super helpful to finally understand that Age of Money metric and how to verify if you are actually a month ahead yet. Edit: Also appreciate the cue to consider how many months ahead **I** would feel comfortable with. Definitely not just 30 days!

[@tonasol9]

Greetings from Mexico! Your video is interesting!

[@ianonline]

I’m working on building a cash reserve, but focusing debt reduction. I still hope for YNAB to again sync with EU banks, then I’ll get get a premium account again, or sooner if I can YNAB for less due to not having account syncing.

[@elizabethman7313]

Syncs to Barclays and Lloyds now…

[@sabrinadericardo4840]

From the Dominican Republic 🇩🇴

[@lmbarnes3]

I dont get this. I rarely use cash. I charge everything and then pay the credit card in full.

[@abbreviatedalex2418]

You can still budget! You can track your credit card in YNAB, but I don't bother. When I use my CC I pretend I used my debit card and enter the transaction in YNAB as usual under the appropriate category. Now the money has left your budget. At the end of the month, you've already accounted for all the transactions you made on your CC, so go ahead and pay it off in full from your checking account. No need to put it in YNAB as a transaction, because you already put it in YNAB throughout the month.

[@nosirrahm]

You can still do that as this has nothing to do with cash spending. This is a budget. If you’re spending on your credit card, the assumption is that you’re spending only money you budgeted for those categories. So money you earned this month (May 22) is covering those credit card expenses you make in 2 months (July 22). This is your emergency fund they say your should have of 3-6 months. If you’re not paid any money next month, will you have the money to pay the credit card back or will you immediately start carrying a balance and paying interest?

[@faustinohernandez84]

amarillo texas

[@mrrobinson10]

Where is the "Age of money" on the the phone app?

[@YNABofficial]

Hi! Click on "Reports" at the bottom of the app. Age of Money should be at the top of that screen. 😀 - Ashley

[@mrrobinson10]

Thanks!

[@SabrinasDigitalLife]

Where can I find your spreadsheet that you use in this video for budgeting?

[@YNABofficial]

Hey, Sandra! We used our budgeting software in this video. You can sign up for a free trial at www.ynab.com.

[@shortydaniel1]

I'm confused because you can't spend less than you earn if all your money goes towards bills every month. If you have bill that come out of your checking account it's impossible to let money sit there an age so I'm confused 🤔

[@YNABofficial]

I hear you, Daniel. It can be discouraging if you feel like you're just barely getting by right now. Jim addresses this at 16:40, check out what he has to say on that and I hope it's encouraging!

[@SmallKerfuffle]

I’ve been there and after a rough time I’m back at that point. But it’s true. If you just keep on budgeting for all of your true expenses you WILL notice money building up in your account / aging in YNAB. Ofcourse it will happen faster of you make more, may be you can take up a side hustle? But even if you don’t, you will be rewarded, but only if you’re honest about your expenses and spending.

[@latonyaking9660]

You probably would look at either generating side income or going to a bare bones budget. Necessities only.

[@dazza9859]

Three days

[@barbhauxwell8802]

Tulsa, OK

[@-Tholos-]

If you get payed once a month you would need your money to be 60 days old to break the cycle right?

[@leerv.]

It doesn't matter how often you get paid per month. It could be once per month, weekly, or bi-weekly like me. "The paycheck-to-paycheck cycle" just means that you're living on money you just brought in. You want to live on money you brought in previously, and take the money you just brought it and put it toward the future. The basic goal is to make is so that you can live on last's month income, that's where the 30 days comes from. Having said that, aging your money to 60 days would just make you feel that much more secure! You'd know that if you lost your job today, you could live for two months and meet your obligations without going into debt. I hit 100+ days recently, and it's a very nice feeling, especially since I've been thinking about my career and possibly making a change. As for how to do it, it's just like the speaker said. Consistently spend less than you earn. The less you spend, the faster your money ages. That's it! :)

[@deannemackness213]

Five days

[@barbhauxwell8802]

4 weeks

[@barbhauxwell8802]

Hawaii

[@barbhauxwell8802]

Oklahoma

[@codyflies5410]

I got to 7 days once... lol

[@barbarabickel8893]

I'm in FOrt Lauderdale

[@dylanfuehne5756]

My first goal is 14 days that way I'll be living in the last

[@Dagfari]

I'm listening from Macau 🇲🇴

[@kellyknight551]

How old can your money get is 30 days the max?

[@YNABofficial]

We recommend folks shoot for 30 days as a goal, but there's no limit, Kelly!

[@kellyknight551]

@@YNABofficial On the ynab software I've watched plenty of videos and the max i see is 30 days I know your money can be older than 30 days just wish it would say that on the software I'm about 40 days in my money is 13 days old trying to get to 30 before 90 days! Ynab is way better than everydollar i like budgeting money when it comes in how you can set up goals and diffetent categories and roll with the punches get to move money around!

[@eb5503]

@@kellyknight551 It can get older than 30. Mine is 62 days old right now.

[@nicolettekevinjaxxon9669]

My account doesnt sync - please help!

[@YNABofficial]

Hey there! Would you mind emailing us at [e-mail]? We'll have one of our import experts get to the bottom of it!

[@barbhauxwell8802]

Nowhere

[@barbhauxwell8802]

4 weeks

[@barbhauxwell8802]

3 weeks