Money Archives - Dadstractions

You Need A Budget. Seriously.

Apr 20, 13 You Need A Budget.  Seriously.

Posted by in Money

This week’s theme provided an excellent opportunity for me to talk about something I’ve been wanting to talk about for a while: budgeting. I always thought I was good with money.  I paid my bills on time, I prioritized what needed to be paid, and I made sure there was money in my bank account to pay the bills I needed to pay.  Yes, that was my sorry definition of being good with money. My folly finally caught up with me and it was time to get serious about debt, savings, investing and budgeting.  My wife and I have a moderate amount of credit card debt so I wanted to tackle that first, but I really had no idea how to budget.  I did a lot of research and investigating into budget planning and software and I found one that I thought could help me learn how to budget appropriately and tackle my debt.  The software and philosophy is You Need A Budget (aka YNAB). You Need A Budget is pretty simple. It’s honestly more about the method than about the software (but the software is pretty nifty). In order to budget the You Need A Budget way, you need to follow 4 simple rules: Rule 1:  Give Every Dollar a Job Rule 2:  Save for a Rainy Day Rule 3:  Roll With the Punches Rule 4:  Live on Last Month’s Income There is no rule that is more important than the other; they all have to work together in order to achieve the right budget/life balance. Rule 1:  Give Every Dollar a Job This is as easy as it sounds.  When you set the budget each month, make sure there is no surplus.  You want to make sure that all of the money you have available is working for you in some fashion and is there, ready to be used.  Trust me, you will never run out of categories to put your money into. Rule 2:  Save for a Rainy Day This is...

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