The YNAB Podcast

Your biggest single expense is one you probably don't think about much... unless you're American and it's April 15th. You may think it's housing, or maybe education, or raising kids, but all those costs are dwarfed by the elephant on your income statement: taxes. We are taxed in hundreds of ways, some obvious like income taxes and sales tax, others more insidious like fuel tax, air travel tax, liquor tax, etc, etc. Jesse points this out to demonstrate something important -- you can be desensitized to almost any expense, even the single biggest expense in your life!   Beginning Balance Podcast with Jesse and Mark Butler Apple: https://podcasts.apple.com/us/podcast/beginning-balance/id1569423517 Spotify: https://open.spotify.com/show/7APubdzXN2eeeMdNpCLkiy?si=75eb73f1ac0a49ba   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Let's cut spending! And then... what exactly? The all too common advice that you need to "cut spending" implies that your level of consumption is simply too high. That may or may not be the case, but in Jesse's experience and the thousands upon thousands of people YNAB has helped to regain control over their money, "spending less" is rarely the problem. Most people don't have a spending too much problem, they have a spending on the wrong things problem. For that reason, you'll never hear Jesse give advice to just "cut spending."   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Jesse answers another round of questions from YNAB listeners. Today someone asks whether there is such a thing as "perfect YNAB" use and if good enough use is OK (yes!). Another YNAB'er is confused on how to calculate tithes for business income, and, as always, there are some questions and comments about credit card rewards.   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Jesse answers a question from a listener who argues that becuase he carries enough cash to cover his credit card spending at all times, he is not riding the float and therefore is gaming the credit card companies. Jesse quotes Charlie Munger -- "show me the incentive, and I'll show you the outcome" (he actually said outcome not behavior) -- and observes that financial institutions have big incentives to encourage more spending, because spending increases their fees. So where there's an incentive, there's a behavior they want to encourage, and using credit cards is it. In Jesse's experience, ditching the credit card has made him less likely to impulse spend, and that experience is likely what financial institutions have figured out!     Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Jesse argues that the common refrain of a thing having "inherent value" or "intrinsic value" is not actually a thing. As Jesse explains, value is a moving target, constantly shifting along with our desires and material circumstances. To a starving man, food is worth more than gold. To that same man well-fed, it can be worth little. We see this with our own money -- as our circumstances change, the categories we prioritze shift. Rule 3, roll with the punches, acknowledges the ever-shifting nature of our needs and desires, and challenges us to make trade-offs to materialize those changes in our financial plans. To that end, nothing has an inherent value, but rather a variable value, the only certainty being that it will fluctuate over time.   Beginning Balance Podcast -- the show Jesse mentions has not aired yet, but will be coming soon! In the meantime, check out more of Jesse's musings about money here: Apple: https://podcasts.apple.com/us/podcast/beginning-balance/id1569423517 Spotify: https://open.spotify.com/show/7APubdzXN2eeeMdNpCLkiy?si=19e8c25d5b104494   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Jesse is back answering another round of questions from his inbox. Today he responds to listeners asking whether the Four Rules are really rules or rather habits, what his favorite time management tools are, and how to relate to a spouse uninterested in budgeting.   Getting Things Done: The Art of Stress-Free Productivity https://www.amazon.com/Getting-Things-Done-Stress-Free-Productivity/dp/0142000280   Four Thousand Weeks: Time Management for Mortals https://www.amazon.com/Four-Thousand-Weeks-Management-Mortals/dp/0374159122     Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Jesse shares a story from a YNAB'er who had a major mindset shift about money. For this person, money went from a stressful topic to envisioning it as "young creatures just looking to party." Imagining your dollars as little "you's," searching for ways to improve your life and live out your values takes away the fear and anxiety around money.   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Mirror, mirror on the wall... which category is the truest of them all? Over the last several weeks, Jesse has explored the idea that money is more than just a tool, it's a reflection of you. Your spending is a representation of your energies and your desires, and therefore a proxy for who you are. So, if you imagined the categories in your spending plan as a mirror -- what would that mirror say about you? Do you like what's in the reflection?   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial  

One of the pervasive messages about money is that "it's just a tool," and Jesse takes issue with that! When money is reduced to a mere tool, like a wrench or a screwdriver, it invites people to be more careless with it, to use it then put it in a drawer and forget about it. Hearkening back to episode #650: It's You All the Way Down, Jesse reminds us that if a dollar is the product of your energies, then a dollar is you! You aren't just a tool -- you are a human, with desires and values which are reflected in your spending. In this light, then, money takes on a much larger role than merely "tool," and it should be treated with the importance and attention it deserves.   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial  

Whether your bank account is looking bare and collecting dust, or flush with cash, the temptation is all the same: to run away from the money. The person in dire financial straits often wishes they had a bunch of money, because then they wouldn't have to worry about money. On the flipside, the person newly flush with cash is quick to forget about the money, because they feel like they have enough now. Inattention is a mistake, no matter how it happens!   Send your question to Jesse: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Jesse opens his inbox for another for round of Ask Jesse, where he answers emails from YNAB'ers about all things money, finance, and... well, life! In today's episode, one listener asks about how to deal with a reluctant partner who doesn't want to participate in the YNAB process. Other listeners share their successes paying off debt and gaining control of their money for the first time.   Send your question to Jesse: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Back in October 2023, Jesse asked listeners to look at their last ten transactions on YNAB and rank them on a scale from one to three, with one being spending that sucked joy from them and three being spending that sparked joy. Then he asked listeners to share their most interesting "three," the most interesting transaction that brough joy. Today, Jesse digs through the answers and discovers an interesting commonality -- the spending that sparked the most joy was spending on other people.   Have a question for Jesse? Email him at: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

A few weeks ago, Jesse put out the call to share your New Years resolutions, as well as a guiding word for 2024 -- something to help you put your resolution into action day to day. Jesse received a number of great responses, and shares a sample of them on today's podcast.   Good luck working toward your goals in 2024!   Have a question for Jesse? Email him at: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Jesse revisits his infamous experiment in which he essentially stopped budgeting for an entire year. The result from that experiment was that he and his family spent several thousand extra dollars that they couldn't account for, and even though the extra spending was not material to the family bottom line, it still bothered Jesse. Today, he hits on what exactly it was that bothered him. Managing money well, building a plan for spending, is virtuous, and virtue is something that you do, not something that you simply have. When the Mecham family stopped following the Four Rules, they lost the habit!   Got a question for Jesse? Send him an email at: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial

Anytime the word resolution comes up, there are naysayers claiming that they don't work. That goals don't work. Unfortunately a lot of people buy into that when they set a goal and fail to achieve it. Their failure leads them to believe that settings goals is a useless endeavour. Jesse offers some encouragement this year, for the goals you seek to achieve and those you fall short on.   Tell Jesse about your goals for 2024! Send him an email at: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial  

As we embrace the New Year, Jesse challenges you to pick some goals and set some resolutions. Even if you fail, you will certainly learn some things in the process of chasing a goal, and that experience is invaluable!   Tell Jesse about your goals for 2024! Send him an email at: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial  

Jesse wishes everyone a Merry Christmas, full of meaning and joy. Hopefully this is a day you can enjoy without worrying about money, because you've dutifully saved up for it all year, but if not -- you can always start working on next year. After your Christmas celebrations are over, create a Christmas target for 2024 and start putting a little money away now. And as Jesse says, the Christmas bill is a joyous one!   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial  

Jesse ran across a quote from one of his favorite authors, Nassim Taleb. In his book Antifragile, Taleb advises "invest in preparedness, not prediction," which also neatly describes the goal of YNAB. We cannot predict the future with any certainty, so it's folly to behave as if we can with our spending habits. What we can do, however, is prepare for the future by embracing our future expenses, and even though we don't know exactly when (or how much) those future expenses will occur, we can save up a pile of cash to handle them.   Jesse gives the example of an old car. As his early 2000's Toyota Camry aged, he started dutifully socking away $150/mo to cover inevitable repairs as well as a replacement vehicle. Years later, he had enough for a replacement, but the car was still humming along. So in this case he did not successfully predict the future. He could have held off on saving that money and directed it toward something else. At the end of the day, however, by preparing for the day he needed a new car, Jesse had a pile of cash in his bank account. When that day didn't come, he still had lots of options, because he had the cash. If he hadn't prepared, and the car died earlier than expected... then he likely would have ended up having to borrow money for the car.   This gets back to the idea of being "antifragile." Owing money is a state of fragility, because someone else has a claim on your future cash flows until you pay off the debt. It prevents you from using your cash to prepare for the future.   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial  

Jesse ran across a quote from author F.W. Boreham the other day that resonated strongly: "We make our decisions, and then our decisions turn around and make us." Mr. Boreham described the goal of the Four Rules in one simple and effective sentence! Working the Four Rules to create a spending plan involves making decisons -- decisions about what you value and where you want to spend your money. Those decisions stack on each other and in turn lead you to financial freedom, peace, and, ultimately, more joy with your money.   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial  

Jesse is back with another round of questions from his inbox, including whether or not a listener should sell her rental property, whether it's worth buying a new car to relieve the stress of sticking with an old car with problems, and if pausing retirement savings to get a month ahead on expenses is worth consideration.   Got a question for Jesse? Send him an email: askjesse@ynab.com   Sign up for a free 34-day trial of YNAB at www.youneedabudget.com   Follow YNAB on social media: Facebook: @iYNAB Instagram: @youneedabudget Twitter: @ynab Tik Tok: @ynabofficial